It is more important than ever for businesses to transition to more sustainable practices, especially as the fight against climate change continues to ramp up. This includes using more renewable energy to keep companies up and running. Practices like these are further encouraged by the government, as evidenced by the launch of the Singapore Green Plan 2030. But transitioning to cleaner power is still perceived to be a heavy expense, and many business owners may still hesitate to fund it in fear of negatively affecting their profits and growth.

This is where clean energy financing comes in. In a country like Singapore, there are a number of opportunities that companies can take to make their transition to clean energy faster and more manageable. Here are some solutions that you can look into for your business:

1) Apply for Government Grants and Financing Schemes‍

Because of the Singapore Green Plan 2030, the SG government has many valuable resources to help business owners transition their businesses to be more sustainable and eco-friendly. Among these resources are their government grants, green bonds, and financing schemes that aim to fund a company’s long-term sustainability efforts.

When it comes to clean energy financing, consider looking into the Economic Development Board’s Resource Efficiency Grant for Energy (REG(E)); the National Environment Agency’s Energy Efficiency Grant; or Enterprise Singapore's Enterprise Financing Scheme – Green (EFS-Green). If you’re planning on applying for a grant or financing scheme, look carefully into its specific requirements to ensure that your business qualifies.

2) Connect with Local and International Financial Institutions

Financing institutions are well-positioned to help your company fund its shift towards cleaner energy, especially when access to capital is so limited. It should be possible to look into local programmes offered by trusted banks or even organisations like the International Finance Corporation (IFC) or the Asian Development Bank for tie-ups that would benefit your company’s vision to go green.

Look into grants, low-interest loans, or technical assistance from these institutions to help push your business in the right direction, particularly for large-scale sustainability initiatives or projects in developing markets that align with global climate goals.

3) Work with an Integrated Financing Platform

A financing platform that focuses on funding energy efficiency can also simplify your business’s transition to cleaner energy. In particular, it can help with your business’s shift towards sustainability by connecting the business with energy service companies and offering different financing options. A successful tie-up may also allow the company to save on electricity bills and upgrade various electrical systems, such as the air conditioning, lighting, and elevator systems.

Working with an integrated financing platform may be one of the wisest choices you’ll make to ensure that the overall transition is seamless and hassle-free, as your partners will handle the assessment, installation, and maintenance of these energy systems.

4) Consider Crowdfunding or Community Initiatives

Consumers are also becoming more eco-conscious, and a number may be willing to lend a hand towards company sustainability efforts. They’re also more likely to support a company that shares their values, which can boost company growth and brand reputation.

It may be an option for your business to open a crowdfunding project for solar panel installations or energy-efficient equipment upgrades to an audience of backers who want to contribute towards a more sustainable future.

5) Look into Green Bonds

Green bonds are debts meant for eco-friendly projects. Like regular bonds, investors lend money to a company or government, and they receive interest payments in return. The difference is that funds must be used for environmental projects.

Singapore’s government aims to issue up to SGD 35 billion of green bonds by 2030. There are eight categories of green projects that may be financed by these green bonds, including renewable energy, energy efficiency, and green buildings. For businesses, tapping into the green bond market can be an effective way to secure long-term, lower-cost capital for large-scale sustainability initiatives.

6) Join the Singapore Sustainable Finance Association (SSFA)

The Singapore Sustainable Finance Association is a platform that initiates dialogue between financial and non-financial corporations regarding green financing. Upon becoming a member, your business can gain access to the latest developments in clean energy financing, as well as other ways to support your business's shift to more sustainable practices. Your business can also join in on joint programmes, networking events, and knowledge-sharing sessions that can propel you forward during your company’s journey towards sustainability.

Taking Further Steps Towards Running a Greener Business

Clean energy financing is one of the most effective ways to truly get a business to realise a greener vision. In addition to financing for big initiatives, however, the company should also consider quicker and smaller efforts it can make in the short term, such as transitioning to electric vehicle (EV) fleets for maintaining operations, implementing recycling programmes, or switching to eco-friendly materials for products and packaging. Other strategies include reducing water consumption, digitising paperwork to cut down on waste, and encouraging employees to adopt greener habits in the workplace.

It’s through these combined efforts, both large and small, that your business can contribute meaningfully to a global mission for a greener and more sustainable future. Knowing that you have the resources available to explore both big and small changes to your way of doing things, do your best to act immediately.