How to Access Singapore’s Green Building Grants

For landlords and building owners in Singapore, the financial barrier to sustainability is rapidly diminishing. You can significantly offset the capital expenditure (CAPEX) of ESG-driven upgrades through three primary government channels.

• Green Mark Incentive Scheme for Existing Buildings 2.0 (GMIS-EB 2.0) provides direct cash grants of up to S$1.2 million or 50% of qualifying costs for energy retrofits.
• The Built Environment (BE) Transformation GFA Incentive Scheme offers up to 3% bonus Gross Floor Area (GFA) for new developments that exceed baseline sustainability and productivity standards.
• Energy Efficiency Grant (EEG) allows Small and Medium Enterprises (SMEs) to tap into co-funding of up to 70% for pre-approved energy-efficient equipment.

To successfully secure these funds, early engagement with qualified professionals is critical to ensure all Measurement and Verification (M&V) protocols are established before physical works commence.

Maximising Asset Value through the Singapore Green Building Masterplan

Sustainability is no longer a peripheral "nice-to-have" in Singapore’s real estate sector; it is a fundamental driver of investment resilience and valuation. Guided by the Singapore Green Building Masterplan (SGBMP) and its ambitious "80-80-80 in 2030" targets, the Building and Construction Authority (BCA) aims to green 80% of the city-state’s building stock by the end of the decade.

For landlords, achieving high-tier certifications like Green Mark Platinum or Super Low Energy (SLE) status is increasingly a baseline requirement to attract Multi-National Corporations (MNCs) bound by stringent global net-zero mandates. Beyond compliance, these high-performing assets are proven to command rental premiums between 4% and 9% compared to non-certified buildings. Furthermore, green retrofitting serves as a hedge, insulating owners against rising carbon taxes and the inherent volatility of global energy prices.

The Funding Portfolio: BCA Green Mark Grants and Incentives

Strategically navigating available grants requires matching the specific asset class and project timeline to the right scheme.

1. GMIS-EB 2.0: Cash Grants for Existing Building Retrofits

The S$63 million GMIS-EB 2.0 is the cornerstone of funding for existing private buildings, including offices, hotels, retail malls, and light industrial developments. This is an outcome-based scheme, meaning rewards are tied directly to the actual carbon abatement achieved through Energy Improvement Works (EIWs).

Data Source: BCA GMIS-EB 2.0 Factsheet, 2025.

Eligibility & Scope:

To qualify, buildings must have a GFA of at least 5,000m². Eligible works include upgrading to high-efficiency chiller plants, implementing advanced Building Automation Systems (BAS), transitioning to LED lighting, and installing on-site solar photovoltaics (PV).

2. BE Transformation GFA Scheme: Unlocking Spatial Value

Valid until 23 November 2026, this joint BCA-URA scheme allows private sector developments to exceed the Master Plan Gross Plot Ratio. By committing to Zero Energy buildings standards and adopting advanced manufacturing (like DfMA) and digital technologies, developers can unlock up to 3% additional GFA. In Singapore’s land-scarce market, this spatial incentive often provides a financial uplift far exceeding direct cash grants.

3. Energy Efficiency Grant (EEG): Targeted Support for SMEs

Recognising the resource constraints of smaller firms, the EEG has been extended until 31 March 2027. It operates on two tiers:

• Base Tier: Up to S$30,000 for pre-approved equipment (e.g., LED lighting, 5-ticks air-conditioners).
• Advanced Tier: Up to S$350,000 for bespoke, large-scale solutions that demonstrate significant carbon abatement (at least 350 tonnes over the equipment's lifetime).

Preparing for the Mandatory Energy Improvement (MEI) Regime

While grants provide the "carrot," the Mandatory Energy Improvement (MEI) regime serves as the regulatory "stick." Starting from 30 September 2025, owners of energy-intensive buildings (GF A ≥ 5,000m²) that exceed specific Energy Use Intensity (EUI) thresholds for three consecutive years will be legally required to:

1. Appoint a registered Energy Auditor.
2. Submit an Energy Efficiency Improvement Plan (EEIP) designed to reduce EUI by at least 10%.
3. Implement and maintain these improvements or face fines of up to S$150,000.

Proactive retrofitting using GMIS funding today allows owners to manage commercial property energy costs and avoid the risk of mandatory, non-subsidised audits later, which could lead to fines of up to S$150,000 ⁴ for non-compliance.

The Savills Advantage: Unlocking Green Finance and ESG Excellence

Unlocking government funding is a technical, rigorous process involving precise documentation and performance verification. Savills’ Sustainability and ESG Services team provides the end-to-end expertise required to translate sustainability goals into measurable financial returns.

We bridge the gap between technical engineering and real estate strategy through:

• Gap Analysis: Assessing your current EUI against Green Mark 2021 standards to identify specific grant eligibility.
• Application Management: Coordinating with Qualified Professionals (QPs) to submit Retrofit Proposals via FormSG before project commencement to ensure no funding is left on the table.
• M&V Supervision: Ensuring permanent instrumentation is installed correctly to verify "Actual Carbon Abated," the specific metric that determines your final grant disbursement.
• ESG Reporting: Aligning your Green Mark achievements with global frameworks like GRESB and GRI to enhance your portfolio’s attractiveness to institutional capital.

Strategic Recommendations: 3 Steps to Future-Proof Your Portfolio

To ensure a risk-adjusted transition to a green portfolio, stakeholders should take the following actionable steps:

1. Conduct a Portfolio Health Check (Immediate): Identify which assets fall within the MEI regime's 75th percentile EUI threshold. Prioritise retrofits for "at-risk" buildings while GMIS-EB 2.0 funds remain available.
2. Phase Upgrades for Cash Flow Neutrality: Focus on high-impact EIWs, such as chiller plant optimisations, which offer the shortest payback periods (typically 3–7 years). Use the first 30% grant tranche to mitigate initial CAPEX.
3. Implement Green Leasing: Engage tenants early to align operational behaviours with building performance. Standardising green lease clauses ensures both parties share the benefits of lower utility bills and facilitates the data collection required for Green Mark re-certification.

Looking to transform a specific asset?

Explore our detailed guides for:

• High-performing Green Mark commercial buildings
• Singapore office market insights for 2025
• Designing for ESG in new developments

Contact Savills Energy & Sustainability Management (ESM) today to secure your funding and future-proof your real estate investment.

Footnotes:

¹ Source: Building and Construction Authority (BCA), "Green Mark Incentive Scheme for Existing Buildings 2.0". https://www1.bca.gov.sg/grants-and-funded-programmes/green-mark-incentive-scheme-for-existing-buildings-2-0/

² Source: Savills Singapore, "Green Mark Platinum Buildings: Strategic Value & Sustainability Performance". https://www.savills.com.sg/blog/article/225253/singapore-articles/green-mark-platinum-buildings--strategic-value--sustainability-performance-and-future-proofing-insights.aspx

³ Source: National Climate Change Secretariat (NCCS), "Singapore’s Climate Action: Mitigation Efforts in Buildings". https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/buildings/

⁴ Source: Business Times, "Energy-intensive buildings must improve efficiency or face fines". https://www.businesstimes.com.sg/property/energy-intensive-buildings-must-improve-efficiency-or-face-fines-s150000