Speech By Dr Balaji Sadasivan
Minister of State of Health and the Environment

At the Launch of the Green Corner
28 MARCH 2003, 9.30 am at Courtyard, Rivervale Plaza

It gives me great pleasure to be here today with fellow Singaporeans to launch the Green Corner.

Last April, when I launched the Energy Labelling initiative for household electrical appliances, I mentioned that households consume about 20% of the electricity generated in Singapore. This is a significant amount of energy.

Electricity is generated at power stations by burning fuels such as natural gas and oil. This, unfortunately, results in the emission of air pollutants and carbon dioxide, a greenhouse gas.

Without a doubt, electricity has contributed significantly towards our well-being. We can expect that, in future, we will own more and more modern conveniences and appliances powered by electricity such as air-conditioners, refrigerators, clothes dryers, dish washers, plasma screen television sets and so on. The list is very long. We must not, however, lose sight that unrestrained consumption of electricity can be detrimental to the environment. So, what can we as households and consumers do to play a part in sustaining the environment without sacrificing our good living standards?

Well, one simple but effective way will be to make a conscious effort to go for environmentally friendlier home appliances whenever we can. Indeed, we can choose to exercise our environmental values, and choose a product not just based on performance or price, but also its environmental benefits and effects. Such purchasing habits of consumers can affect the way the manufacturers design, produce and market their products.

This is precisely where energy labelling fits in. Energy labelling is a simple yet effective tool to help us select energy-efficient appliances that are more environmentally friendly and yield energy and cost savings. It seeks to transform the behaviour of consumers and appliance vendors towards improved energy efficiency. It is also a cost-effective way of limiting energy growth without compromising living standards.

In many countries, labels and minimum standards for energy performance have been shown to shift the distribution of appliances toward more energy-efficient types. The end effect is the reduction of electricity consumption by households and fuel combustion in power plants. There are also longer term benefits such as reduced capital investment in energy supply infrastructure, enhanced economic efficiency, lower energy bills, enhanced consumer welfare and the avoidance of urban and regional pollution.

Let me quote you some success stories from such programmes in other countries.

The Australian energy labelling programme has been very successful in raising awareness of the benefits of energy-efficient appliances among buyers. About half of all their buyers use the information on the label to compare models in the market, and many consider the energy-efficiency rating to be the most important factor when purchasing new appliances. When labelling was mandated in 1992, it resulted in a nationwide reduction in energy consumption of appliances by an estimated 11%.

The European Union (EU) energy label was introduced in the early 1990s. Since then, it has been the key driver in improving appliance energy efficiency across Europe. In Germany, for example, the efficiency of refrigerators on the market improved by 16.1% between 1993 and 1996, while the efficiency of appliances on the market in the Netherlands improved by 12.6% between 1992 and 1995. In the United Kingdom, the efficiency of refrigerators increased by 7.3% between 1994 and 1996. Current trends suggest that the programme is expected to achieve a 10% decrease in projected electricity demand for these appliances by 2020. The estimated savings translate into more than $70 billion in avoided electricity spending for consumers.

The US minimum efficiency standards are another success story. It is estimated that for every $1 increase in the price of appliances due to US efficiency standards, consumers save an average of $3.20 on energy consumption over the life of the appliance.

These examples demonstrate that Singaporeans too, stand to gain if we collectively support our energy labelling initiative. If you buy a labelled appliance, you can be sure it meets a minimum energy efficiency standard. So if a product is not labelled, you should be apprehensive about the performance of the product both from the energy as well as environmental performance perspectives.

Most of the electricity we consume at home is used for running refrigerators and air-conditioners. In fact, these two appliances alone account for up to 65% of the electricity consumed in the home - which is why we started by labelling these appliances first.

When we started the programme in April last year, there were only a handful of refrigerator and air-conditioner models that had energy labels. I am pleased to report that as of today, 34 refrigerator and 28 air-conditioner models have obtained the Energy Label.

But this alone is not enough. Our larger departmental stores usually offer many models in their showrooms. Shoppers should demand that vendors provide information on energy efficiency so that they can include good energy performance in their list of requirements when shopping for these appliances. After all, the cost of running the appliance will hit their wallets over the long run.

As part of consumer education, the 3P partners - Singapore Environment Council or SEC, Gain City Best-Electric and the National Environment Agency - have arranged for the Energy Label brands to be exhibited at the 'Green Corners' at four of Gain City's outlets.

This three-month-long programme aims to focus shoppers' attention on energy labelled appliances in the store. It will also provide information and advice, and generate public affinity for the Energy Label. SEC will also assign their Green Volunteers to assist shoppers on their selection from the environmental perspective. SEC will also assign their Green Volunteers to assist shoppers on their selection from the environmental perspective. In addition, Gain City has also arranged for their staff to be trained in the special energy saving features of the appliances to help shoppers seek out products that have a low impact on the environment.

I hope that this initiative will not only raise awareness amongst shoppers on energy efficiency, but also educate them that energy conservation starts at home and can be rewarding. For example, selecting a 500-litre refrigerator with an 'excellent' rating over one without a rating could mean substantial savings of almost $100 in electricity bills annually. This would also mean that pollution from generating electricity is avoided.

In closing, I would also like to thank the appliance manufacturers, distributors and vendors who are participating in the scheme. It shows their concern and commitment to serve their customers and to protect the environment. I would further urge other brand manufacturers to join in this worthwhile cause.

I wish everyone here a happy weekend.

Thank you.