Clean Development Mechanism Documentation Grant
14 Aug 2008
National Environment Agency launches $500,000 grant to promote Clean Development Mechanism projects in Singapore
Singapore, 14 August 2008 - The National Environment Agency (NEA) has set up a grant to support companies in engaging carbon consultancy services, to develop the documentation needed for Clean Development Mechanism projects under the Kyoto Protocol. The grant will provide co-funding up to S$100,000 per project.
Clean Development Mechanism
The Clean Development Mechanism (CDM) is a mechanism under the Kyoto Protocol that allows greenhouse gas emission reductions from projects implemented in non-Annex I (or developing countries) such as Singapore, to be used to offset emissions of Annex I (or developed countries) such as Japan and the European Union. Under the Kyoto Protocol, Annex 1 countries are required to reduce their greenhouse gas emissions by about 5% below 1990 levels between 2008 to 2012.
CDM projects in Singapore can apply to the United Nations (UN) for emission reduction credits, known as Certified Emissions Reductions (CERs), which are tradable. One CER is equivalent to one tonne of carbon dioxide abated. CDM is not only a means for companies to reap economic benefits, but also a means for them to demonstrate their commitment towards mitigating global warming by implementing projects that result in measurable and long-term reductions in greenhouse gas emissions.
Mitigating Climate Change
Singapore is committed to the global effort to mitigate climate change. One of the ways to achieve this is to promote CDM projects.
According to the International Emissions Trading Association, energy efficiency and fuel switching projects accounted for about 40% of CERs traded in 2007. As energy efficiency is a key strategy in reducing greenhouse gas emissions in Singapore, NEA hopes that this new grant will encourage more companies to embark on energy efficiency and other projects to minimize their greenhouse gas emissions.
The UN has estimated that CDM projects can potentially achieve worldwide emission reductions of more than one billion tonnes by the end of 2012.
“CDM is mutually beneficial for companies and the environment. CDM projects not only help to cut down carbon dioxide emissions, they are also a means for companies to reap economic benefits. CDM therefore helps to make projects on sustainable development in non-Annex 1 countries economically viable and gets the projects implemented. With the launch of this grant, NEA would like to see more companies coming forward to participate in this win-win scheme,” said NEA Chief Executive Officer, Mr Lee Yuen Hee.
Ongoing CDM projects
At present, there are four local projects undergoing validation by the United Nations. They are projects implemented by M/s Bee Joo Industries, M/s Power Seraya Ltd, M/s Kim Hock Corporation and M/s IUT Global. Their CDM projects are respectively on waste heat recovery, switching from fuel oil to natural gas, biomass energy, and food waste biomethanisation.
These four projects will reduce Singapore's annual CO
2 emissions by about 533 kilotons per year. At the same time, the four companies are expected to earn a total of S$235
million1 (based on the current CER price of €22) from their projects over the 10-year crediting period stipulated by the UN.
Application forms and eligibility criteria are available on NEA's E
2 Singapore website: http://www.e2singapore.gov.sg/cdm.html . Alternatively, interested parties can contact NEA at tel: 67319277 (Mr Adrian Tan) or 67319666 (Mr Wilson Lin) for enquiries.
1Calculation – 571,000 CERs/year x 10 years (crediting period) x €22 x S$2 = ~ S$ 250 million.
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