Current and Projected Levels of Carbon Emission by Built Environment Sector and Plans to Enhance Green Financing for Construction Companies
Ministry of National DevelopmentSpeakers
Summary
This question concerns carbon emission levels in the built environment sector and initiatives for green financing, as raised by Mr Yip Hon Weng. Minister for National Development Mr Desmond Lee reported 11 MtCO2e of emissions in 2018, noting projected increases post-pandemic, and announced that the Building and Construction Authority (BCA) will mandate sustainable practices from December 2021. The Minister highlighted the Green Mark scheme for reducing lifecycle carbon and the Monetary Authority of Singapore’s (MAS) grant scheme to help firms defray green loan assessment costs. BCA and MAS are also collaborating with industry bodies to build green financing capabilities and standardize loan frameworks. These efforts include engaging banks to recognize building certifications and conducting workshops to raise awareness of financing schemes for firms.
Transcript
37 Mr Yip Hon Weng asked the Minister for National Development (a) what are the current levels of carbon emission by the built environment sector; (b) what is the projected trend of increase as construction steps up post-pandemic; (c) whether there are concrete plans on reducing embodied carbon in buildings, such as sourcing of green building materials; and (d) whether the Government is working with banks to enhance green financing for construction companies.
Mr Desmond Lee: Buildings accounted for about 11 CO2-equivalent (MtCO2e) of carbon emissions in 2018, the most recent year for which verified data are available. Emissions from buildings are projected to increase with the recovery in the construction of new buildings following the pandemic.
To reduce embodied carbon in buildings, BCA will require building projects to implement a minimum number of sustainable construction practices, such as the use of low-carbon concrete and resource-efficient design, from 1 December 2021. On top of this, BCA’s voluntary Green Mark scheme promotes the reduction of a building’s carbon footprint over its entire lifecycle. The scheme encourages developers to assess the embodied and operational carbon of their building projects, use sustainable construction practices and materials and establish environmentally-friendly specifications in the fit out of their buildings.
To facilitate companies’ access to green financing, the Monetary Authority of Singapore (MAS) launched the Green and Sustainability-Linked Loans Grant Scheme (GSLS) in January this year. The scheme helps companies defray the cost of conducting independent assessments to validate the sustainability credentials of a loan. The GSLS also supports banks in the development of green and sustainability-linked loan frameworks. Such frameworks provide standardised criteria and processes for the assessment and issuance of loans to finance activities that contribute to sustainable development, such as the construction of green buildings.
BCA and MAS are also working with the Singapore Green Building Council (SGBC) and the Real Estate Developers’ Association of Singapore (REDAS) to build green financing capabilities in banks and built environment firms. This includes engaging banks on the Green Mark scheme and recognition of green building certification standards for meeting green financing requirements and conducting workshops to raise awareness on green financing schemes for built environment firms.