Channel NewsAsia reported last week that the Building Construction Authority (BCA) had launched the “Building Retrofit Energy Efficiency Financing Scheme” and will partner Standard Chartered Bank and United Overseas Bank in financing the loans.
New financing scheme for energy efficient buildings
SINGAPORE: A new financing scheme has been launched to help owners retrofit old buildings to make them more energy efficient.
Announcing this at the opening of the International Green Building Conference at Suntec City on Wednesday, Minister of State for National Development Brigadier-General (NS) Tan Chuan Jin said the “Building Retrofit Energy Efficiency Financing Scheme” will start on a pilot basis from October 1.
He said Singapore’s exisiting buildings make up more than 95 per cent of the total building stock and Singapore can reduce its carbon footprint by making old buildings more energy efficient.
The Building Construction Authority (BCA) will partner two financial institutions – Standard Chartered Bank and United Overseas Bank – to finance the loans.
BCA will also be sharing the risk of any loan default with the financial institutions.
BG(NS) Tan said the scheme is to help some owners who may be reluctant to retrofit their buildings because of cost.
He said: “We are probably one of the first few countries in the world which mandates minimum energy efficiency standards for existing buildings. The building owners may ask how will this mandatory requirement affect us?
“While the upfront retrofitting cost to meet the minimum standards may be higher, the energy savings after the retrofit will eventually pay for this retrofitting cost.
“Buildings owners can reduce their energy bills and do their part for the environment at the same time. BCA will consult the industry and stakeholders on the proposed amendments to the Building Control Act in the coming months.”
To complement the financing scheme, the Ministry of National Development will amend the Building Control Act to mandate minimum Green Mark standards for existing buildings.
This will be similar to the current requirement for new buildings.
BCA will also be consulting the industry and stakeholders on the proposed amendments to the Building Control Act in the coming months.