New digital playbook launched to help S'pore businesses reduce emissions from electricity purchased

Businesses will soon be able to draw upon strategies from a newly launched playbook to reduce their carbon emissions, announced Second Minister for Trade and Industry Tan See Leng on Oct. 22 at the Asia Clean Energy Summit during the Singapore International Energy Week (SIEW) 2024.

Launched by the Energy Market Authority (EMA), Energy Research Institute @ Nanyang Technological University (NTU) and Enterprise Singapore, the three-part playbook contains "actionable strategies" for businesses to reduce their Scope 2 carbon emissions. 

Scope 2 carbon emissions refer to indirect greenhouse gas emissions associated with companies' purchase of electricity, as well as steam, heat or cooling.

Who is this playbook for?

Titled “Powering a Sustainable Future: A Playbook on Scope 2 Emissions Reduction for Singapore Businesses", the playbook will act as a comprehensive resource covering Singapore's existing policies on decarbonisation, stated a press release by EMA.

It will also include practical solutions on how businesses can develop sustainable strategies to enhance their energy efficiency and lower electricity-related carbon emissions.

By adopting these solutions, businesses can tap on new opportunities, "reduce costs and enhance resilience against climate risks".

The playbook intends to guide small and medium enterprises (SMEs) in understanding the regulatory requirements behind sustainability reporting.

For example, listed companies in Singapore will be required to make climate-related disclosures from the Financial Year (FY) of 2025.

Non-listed companies, defined as having annual revenues of at least S$1 billion and total assets of at least S$500 million, will have to do so from FY 2027.

Currently, SMEs with less than S$500 million represent about 80 per cent of the companies listed on SGX.

The playbook is also targeting businesses whose main source of emissions are from electricity consumption.

Understanding the origins of Scope 2 emissions and how to reduce it "is key to accelerating their decarbonisation journey," added EMA.

Two of three sections released

To ensure that the recommendations are "practical and evidence-based", the playbook will contain a mix of case studies, research and assessments on strategies for Scope 2 decarbonisation.

The playbook comprises three sections:

• Section A begins with an overview on Singapore's decarbonisation efforts.
• Section B outlines the role of the private sector in reducing emissions.
• Section C features a range of actionable strategies businesses can adopt in the short, mid and long term.

Sections A and B were launched in conjunction with SIEW and are now available.

The full playbook will be available in the first quarter of 2025.

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Top image from Canva and EMA