Equitable Distribution of Carbon Tax-Funded Decarbonisation Support Between SMEs and Large Firms and Safeguards Against Disproportionate Capture

34 Mr Gabriel Lam asked the Minister for Sustainability and the Environment (a) how many Small and Medium Enterprises (SMEs) have received decarbonisation support financed by carbon tax revenues since 2022 compared to larger companies; (b) what mechanisms prevent larger firms from disproportionately capturing such support; and (c) whether the Government publishes verified emissions reductions achieved per dollar of carbon tax revenue spent.

Ms Grace Fu Hai Yien: The Government is committed to supporting Singapore-based companies of all sizes in the transition to a low-carbon economy. We do this through measures that are funded by several revenue sources, including carbon tax revenue.

We tailor solutions to support businesses, recognising that smaller firms may require greater assistance to undertake capital-intensive investments. For example, under the Energy Efficiency Grant, Small and Medium Enterprises (SMEs) receive up to 70% support for the adoption of pre-approved energy efficient equipment, compared to up to 30% for non-SMEs. The Government recently announced that the Energy Efficiency Grant (Base Tier) will be expanded from six eligible sectors to all sectors and extended to 31 March 2028 to better help our companies adopt energy efficient equipment. The Enterprise Development Grant for Sustainability also helps fund up to 70% of sustainability projects for SMEs, which could include resource optimisation projects that help them decarbonise.

Singapore's carbon tax is part of a suite of mitigation measures that support the transition to a low-carbon economy. The Government regularly publishes verified emission and carbon tax revenue figures.