Companies can save over S$1.5 billion annually by implementing energy efficient technologies.
But retrofitting your office building, and reducing your carbon footprint don’t always come cheap.
In Singapore, analysts estimate that energy efficiency projects can cost between S$1 billion and S$9 billion.
Business adviser ReEx is studying energy efficient opportunities in six regional countries.
“It could give ideas about how a new or innovative financing mechanism could be set up, how we can address this financing gap and come up with some innovative ways. And that would require a public private partnership,” said Frederic Crampe, MD of ReEx Capital Asia.
Another way to raise funds for energy efficient projects is to sell carbon credits on the carbon trading market.
Companies that have exceeded the amount of emissions they can release can buy or trade carbon credits with other firms.
However, individual projects may not generate enough carbon to be traded.
Therefore, industry watchers said several groups in the region want to bundle such projects to create a bulk of carbon credits.
While experts maintain that there is still a firm future for carbon trading, with a wide variety of new developing markets such as Southeast Asia and Africa, what is needed is international policy for further clarity on pricing.
“Unless you put a price to these emissions, you do not set the right economic tone. A lot of people have talked about subsidies/taxes. When you talk about carbon pricing, you have a trading issue and a taxation issue,” said Professor Michael Quah at National University of Singapore.
Industry watchers said governments need to introduce more policies to get companies to buy into carbon trading.
