Take steps for Singapore to go green: Budget 2011 wish list

Straits Times 12 Feb 11;

MR EDWIN Khew is chief executive and managing director of environmental firm IUT Global, which converts food waste, animal manure and organic sludge into electricity and bio-compost. The 61-year-old also heads the Sustainable Energy Association of Singapore, a trade group for firms operating in the green energy sector.

What his problems are

'It is a tough sell to persuade companies to be green and to segregate their waste for recycling and expect them to pay the same cost as what they are currently paying [for disposal] or even more.

'All expect discounts...They will do it only if it helps them save costs - a very pragmatic but myopic view with respect to the environment.'

Mr Khew says that the lack of recycling laws means his company cannot collect from the many places that generate food waste, such as hawker centres.

What he wants

'I hope that the Government will pass a recycling law very soon requiring industrial, commercial and institutional organisations to segregate and recycle all recyclables including food waste. This is the only way Singapore and Singaporeans will get on board and recycle and minimise waste going into our incinerators.'

He also says the Government could raise the costs charged on businesses when they send trash to be incinerated. 'This will ensure all businesses are incentivised to segregate and recycle. Otherwise, if it is cheaper to throw things away to be incinerated, people will continue to do so even with recycling laws in place.

'Meanwhile, I hope to see a budget set aside to help fledgling technology companies in the environmental and sustainable energy sector to support them in their start-up phase so that they can build and operate a model facility in Singapore, and grow enough to win projects in the regional markets.'

What experts say

Industry watchers agree that companies and consumers should be given a nudge by the Government to adopt more environmentally-friendly practices.

Ms Latha Mathew, tax partner at Ernst & Young, says the Government can help defray the initial costs for companies that want to find out their carbon footprints. It could provide enhanced tax deductions for firms that engage experts to come up with appraisals and recommendations.

Firms that take firm steps to save energy could be given grants or rebates.

Ms Mathew says that companies that invest in energy-efficient equipment could be given an investment allowance of 150 per cent. The additional 50 per cent deduction will supplement the current 100 per cent accelerated capital allowance for certified energy-saving equipment.

PwC Singapore tax partner David Sandison suggests the Government could provide funding for organisations engaged in environmentally-friendly waste management initiatives.

Both Mr Sandison and Ms Mathew suggest extending the Green Vehicle Rebate scheme, which will expire at the end of this year. They also suggest tax incentives for improvements designed to make homes more energy efficient.

Ms Mathew adds that the clean technology sector is one worth developing. She feels the Government could consider boosting research grants for the industry and improving tax deductions for angel investors and venture capitalists.

JONATHAN KWOK