Singapore's Green Plan 2030: What this means for developers, owners, and occupiers

Singapore's Green Plan 2030 is a comprehensive environmental initiative aimed at reducing the city-state's carbon footprint and achieving net-zero emissions by 2050. This means that these buildings must receive the Green Mark certification, which is awarded by the Building and Construction Authority (BCA) to bulidings that meet certain environmental standards.

The minimum rating for previous version of Green Mark certification was Gold rating. For the latest version, GoldPlus rating will be the minimum. According to the trend, the BCA may remove the GoldPlus rating and make Platinum the minimum rating.

The latest version of the Green Mark certification places greater emphasis on airside efficiency, in addition to plant room efficiency. With Singapore's goal of achieving net-zero emissions by 2050, it is likely that the Green certification and ratings will become even more stringent in the future.

In the United Kingdom, a regulation has been introduced called the Minimum Energy Efficiency standards (MEES). This regulation makes it illegal to rent buildings with a rating of F or G from 2023. This means that buildings with these ratings must be upgraded to meet the minimum standards, or they will not be able to generate rental income. By 2030, most buildings in the UK are expected to have a rating of A or B, or they will also be illegal to rent.

It is expected that Singapore may follow suit and introduce similar regulations, albeit progressively. For example, the Carbon Tax in Singapore is set to increase from $5 per tonne of CO2 emissions in 2023 to $50-$80 per tonne of CO2 emissions in 2030. This is likely to encourage more companies to invest in green initiatives nd reduce their carbon footprint.

Additionally, Singapore has recently announced the Mandatory Energy Improvement (MEI) Regime, which requires commercial buildings with an energy use intensity (EUI) below a certain threshold to conduct energy audits and propose improvement works by the end of 2024. This is expected to increase demand for energy-efficient equipment and lead to an increase in pricing.

Overall, Singapore's Green Plan 2030 and the introduction of regulations such as the MEES and MEI Regime adopt similar initiatives, it is likely that the demand for green technologies and sustainable practices will continue to grow.

As a building owner or occupier, if you need strategic advice on how to retrofit your buildings to comply with the green standards and yet remain profitable, find out how our ESG experts can help you do so here.