NINETY projects amounting to S$3.4 million have been approved to date under the Energy Efficiency Fund (E2F), Second Minister for Trade and Industry Tan See Leng said in Parliament on Wednesday (Apr 3).

Previously administered by the National Environment Agency, the E2F has been “subsumed under” the Energy Efficiency Grant from Monday.

The minister was responding to a question filed by Workers’ Party Member of Parliament He Ting Ru, who also asked for an update on Singapore’s carbon tax transition framework.

In response, Dr Tan noted that since the framework was announced in January 2022, the Economic Development Board has engaged more than 20 affected companies – such as those in the chemicals and semiconductor sectors – on its details and implementation.

“The transition framework will be calibrated to spur companies to invest in decarbonisation,” Dr Tan said, though he added that transitory allowances will be provided only for “a proportion” of firms’ emissions, with the remainder subject to the prevailing headline carbon tax.

Singapore’s carbon tax currently stands at S$25 per tonne of emissions, up from S$5 per tonne in 2023.

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“The government will review and will adjust the allowances based on how companies have fared in lowering their emissions, as well as international developments and advancements in decarbonisation technologies,” the minister added.

More details on the framework will be made known in “about a year”, said Dr Tan.

“This is a developing framework and the companies that we are engaging are also looking at international benchmarks. In about a year from now, I think we will be able to give you a better (and) clearer indication,” he said.