While the new Energy Conservation Act has been criticised by some Members of Parliament as lacking in teeth, most environment groups Today spoke to lauded the initiative as they cautioned against a punitive regime for companies.
Under the legislation, which was passed last week and will kick in next year, companies here which consume more than 15 GWh of energy annually have to appoint an energy manager to monitor energy usage and greenhouse emissions. They also have to submit reports to the authorities and come up with targets and measures to improve energy efficiency.
While there are no penalties for companies failing to meet their targets, the Singapore Environment Council (SEC) said that it “believes more in an approach” that incentivises companies - for instance, through certifications, recognition or awards - rather than penalties and sanctions, which “will not be conducive in a business environment”.
SEC executive director Jose Raymond said: “In any case, the financial cost resulting from excessive energy use is a major penalty in itself.”
Former Nominated MP Edwin Khew, who chairs the Sustainable Energy Association of Singapore, felt the new law was overdue given the rising energy costs and Singapore’s increasing energy consumption.
Adding that the new Act is “a step in the right direction”, World Wide Fund for Nature Singapore pointed out that “imposing penalties or sanctions on high energy users is but one way to encourage companies to be more environmentally friendly”.
Environmental Challenge Organisation (Singapore) president Wilson Ang also felt that punitive measures have to be explored cautiously to avoid “unnecessary cost” to consumers.
Strix Wildlife Consultancy director Subaraj Rajathurai, however, called for penalties such as fines for errant companies. “The Government should be doing whatever it takes to promote a more energy-efficient environment,” he added.
In June last year, the Singapore Exchange introduced a Sustainability Reporting Guide for its listed companies. And companies Today spoke to said they already have measures underway to monitor and reduce energy consumption and carbon footprint.
The SMRT, for example, has implemented initiatives such as a SMRT Environment Policy and a Green Code of Conduct.
SMRT green committee chairman Shahrin Abdol Salam said: “Our energy planning and management involves regular tracking of usage across our network, offices and depots, and we deploy appropriate technology and processes to achieve optimal energy conservation.”
SBS Transit said it is conducting trials on solar-powered street lamps at its train depot and LED lightings on the platform of a Light Rail Transit station. These initiatives will be rolled out on a wide scale if the results are positive, said SBS Transit senior vice-president (corporate communications) Tammy Tan.
Shell Singapore and ExxonMobil Singapore said energy management systems have been put in place in their manufacturing plants and refineries, while PSA Corporation said it regularly audits its buildings to “identify areas for energy conservation”.
The Singapore branch of Conservation International (CI), a non-profit organisation that collaborates with companies to reduce their impact on the environment, noted that two companies here - Wilmar International and Giti Tire (Singapore) - are part of its 13-member Asia-Pacific Business Sustainability Council.
With the new Act, CI-Singapore managing director Kashyap Choski said he hopes more companies will come on board the council to share their green practices.
