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SG Budget 2023: Greater push towards net zero provides opportunities for startups

There are several points in the recently announced SG Budget 2023 that could be relevant for the tech startup ecosystem in Singapore, but in this opinion piece, I would like to put the emphasis on those that are relevant in supporting the move towards net zero.

Carbon neutrality, which is defined as a state of net zero carbon dioxide emissions, has been making headlines in the past year–for the right reason. If we look at the list of recent natural disasters related to the climate crisis that we are facing, we can see that the stakes are getting higher and higher. If talking about the lives lost due to these disasters is not enough to inspire us to do something, let us talk about the cost.

The World Economic Forum happens to have a list of the 10 costliest climate disasters of 2022. As we can see here, these disasters caused more than US$3 billion-worth of damage each. The list is limited to disasters that happened in 2022; I could not dare to imagine the number if included what had happened in the previous years.

But the good news is that the startup ecosystem is making a move–however small.

In addition to building solutions that can directly tackle challenges related to the climate crisis, such as handling plastic waste pollution, we also begin to explore ideas on how the different verticals in the tech industry can play a role. We have looked at the role of fintech and blockchain in the transition towards net zero; we have also looked at green buildings and emerging technology.

Also Read: ‘There’s a lack of urgency among companies in achieving net zero targets’: Unravel Carbon’s Grace Sai

This is why the appearance of “low-carbon transition” in SG Budget 2023 is a welcome addition.

According to Hari V. Krishnan, CEO and Managing Director at PropertyGuru Group, in a public statement, the measures announced in Budget 2023 reflect the growing local investments in sustainable urban living.

“We believe that the increase in the carbon tax rate, greening our buildings and vehicles, as well as growing national climate-related resources, will help Singaporeans put eco-consciousness top-of-mind in their daily lives,” he writes.

“According to our PropertyGuru Singapore Consumer Sentiment Study H2 2022, three in five surveyed Singaporeans are open to, but unsure of, the idea of a net-zero home. Furthermore, one in three respondents said they would purchase a net-zero home.”

He explains the steps that the company is taking to make green living easier for customers.

“To make eco-friendly options more accessible to Singaporeans, we continue to develop solutions such as PropertyGuru Green Score – a sustainability rating attributed to condos and HDBs listed on PropertyGuru.com.sg. This, along with our green living guides, helps local residents understand how eco-friendly a home is so they can make informed greener choices.”

Also Read: Singapore’s Transport Capital launches VC fund for decarbonisation, digitalisation startups

Another important aspect of sustainability is food security.

The budget includes the extension of the Energy Efficiency Grant for SMEs in the Food Services, Food Manufacturing, and Retail sectors to adopt energy-efficient equipment.

In addition to helping with the aspect of energy conservancy, according to Emon Zaman, Senior Vice President, Asia Pacific, AVEVA, this move symbolises a “step forward” to boost Singapore’s collective food security.

“We are heartened to hear that the government is extending the Enterprise Financing Scheme and Energy Efficiency Grant till March 2024 to help businesses. Specifically, the Energy Efficiency Grant will help businesses in food services and food manufacturing invest in energy efficiently – thus strengthening Singapore’s food resilience, reliability, and sustainability,” he writes to e27, adding that this is in line with the company’s objective.

“In truth, there are no fixed endpoints to issues surrounding food security as many external factors such as climate change and geo-political affairs continue to create a volatile economy. The recently announced initiatives are instrumental in encouraging SMEs to develop new innovations and solutions to increase the amount of food produced, drive greater self-resiliency, and expand crop cultivation capabilities and capacities. However, as a nation, we should always continue to innovate to ensure the long-term viability of food production and food security for future generations.”

Also Read: This Indian startup dreams for a planet with Zero(e)Waste

Last but not least, as an ecosystem, we must use this opportunity as a reminder that contributing to decarbonisation is not something that is exclusive to climate tech startups.

The recent pandemic is a good reminder that the worst, most unthinkable thing can actually happen.

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