Singapore businesses face increasing pressure to adopt sustainability practices from regulators, supply chain partners, and customers. The good news: Singapore offers grants across the full sustainability spectrum — from energy-efficient equipment upgrades to sustainability reporting, green R&D, carbon management software, and green financing.
This guide covers seven distinct funding pathways for sustainability:
- Equipment upgrades (EEG)
- Sustainability reporting (SRG)
- Green transformation projects (EDG)
- Green financing (EFS-Green)
- Carbon and ESG software (PSG)
- Green R&D tax incentives (EIS)
- Workforce green skills (SFEC)
Whether you are starting with basic energy savings or pursuing comprehensive ESG transformation, this guide maps every sustainability-related grant to specific business needs.
Best-Fit Grants for Sustainability
Start Here (Quick Pick)
- You want to replace old equipment with energy-efficient models (LED, air-con, refrigeration, kitchen equipment) — EEG
- You need to prepare your first sustainability report (ISSB compliance, ESG disclosures) — SRG
- You are implementing a larger green transformation (carbon reduction, ISO 14001, circular economy) — EDG
- You need financing for green capital investments (solar panels, green fleet, sustainable infrastructure) — EFS-Green
- You want ESG tracking software (carbon accounting, sustainability reporting platform) — PSG
- You are investing in green R&D (new clean technologies, green product development) — EIS
- You want to upskill staff in sustainability (green skills training, sustainability certification courses) — SFEC
Eligibility & Timing Rules
- Apply before you pay or sign. Deposits, invoices, or signed contracts before submission can make you ineligible for grant-funded schemes (EEG, SRG, EDG, PSG).
- Use pre-approved equipment/solutions where required. EEG Base Tier and PSG require selection from the pre-approved list.
- Different grants have different company size requirements. SRG requires listed company status or S$100M+ revenue; EEG requires eligible sector SSIC codes; SFEC requires qualifying employer status.
- No double-dipping on the same expense. The same cost item cannot be claimed under multiple grants. However, different project components can use different grants — for example, EEG for equipment and PSG for carbon software.
- Tax schemes work differently from grants. EIS provides tax deductions, not cash reimbursements. SFEC provides a credit against levies, not direct funding.
Top Grants for Sustainability
1) Energy Efficiency Grant (EEG)
Use EEG when: you are upgrading to energy-efficient equipment to reduce utility costs and carbon footprint.
Good fit examples
- LED lighting systems (replace fluorescent or halogen lighting)
- High-efficiency air conditioning (inverter systems, variable refrigerant flow)
- Commercial refrigeration (display chillers, walk-in freezers with better efficiency ratings)
- Kitchen cooking equipment (energy-efficient ovens, fryers, steamers)
- Variable speed drives (for motors and pumps)
- Electric vehicles / forklifts (replacing diesel equipment)
How much
- Base Tier: Up to S$30,000, with 70% support for SMEs and 30% for non-SMEs (valid until 31 Mar 2026)
- Advanced Tier: Up to S$350,000 (for projects with 350+ tonnes lifetime CO2 abatement)
When
- Apply before purchase or installation
- Equipment must be from pre-approved list (Base Tier)
How (fast path)
- Check the pre-approved equipment list on GoBusiness for your equipment type.
- Get quotes showing energy efficiency ratings and cost (do not sign or pay).
- Submit via BGP (Business Grants Portal).
- After approval, purchase and install equipment.
- Submit claim with photos and receipts within one year.
Where
- See more: Energy Efficiency Grant (EEG)
2) Sustainability Reporting Grant (SRG)
Use SRG when: you are preparing your first sustainability report with ISSB-based climate-related disclosures.
Good fit examples
- External sustainability consultancy (ESG strategy, materiality assessment, report drafting)
- Third-party assurance services (independent verification of sustainability report)
- ESG software and tools (data collection platforms, carbon accounting systems for reporting)
- Sustainability training for staff (ISSB standards, ESG reporting methodology)
- Transition to ISSB compliance (IFRS S1 and S2 standards)
How much
- Up to 30% of eligible costs
- Capped at S$150,000 per company (one application only)
When
- Apply before project starts (no work commenced, no contracts signed)
- Must be preparing your first ISSB-compliant report
- Must apply before your mandatory compliance deadline
How (fast path)
- Confirm eligibility: SGX-listed (non-STI) OR S$100M+ annual revenue.
- Get consultant/vendor quotations with detailed scope breakdown.
- Submit via BGP with financial statements and quotations.
- After Letter of Offer, complete project and publish report.
- Engage external auditor for claim verification, then submit claim.
Where
- See more: Sustainability Reporting Grant (SRG)
3) Enterprise Development Grant (EDG) — Green Projects
Use EDG when: you are implementing a larger sustainability transformation — carbon reduction, green certification, or sustainable process redesign.
Good fit examples
- Carbon footprint reduction projects (process redesign, waste heat recovery, renewable energy integration)
- Green certification (ISO 14001, B Corp, industry-specific sustainability certifications)
- Sustainable supply chain (supplier sustainability assessment, green procurement systems)
- Circular economy initiatives (waste reduction, recycling systems, product lifecycle improvements)
- Sustainability capability building (strategic planning, roadmap development)
- Clean technology implementation (beyond standard equipment — custom solutions)
How much
- Up to S$500,000 funding support
- Typically 50—70% co-funding for SMEs
- Processing time: 8—12 weeks
When
- Apply before starting the project
- Requires a project plan with clear sustainability outcomes
How (fast path)
- Define your sustainability project and expected outcomes (carbon reduction, efficiency gains, certification).
- Get vendor quotes for consultancy, equipment, training, and professional services.
- Prepare a project plan showing how changes improve environmental performance.
- Submit via BGP with business case and supporting documents.
Where
- See more: Enterprise Development Grant (EDG)
4) Enterprise Financing Scheme — Green Loan (EFS-Green)
Use EFS-Green when: you need financing for larger green capital investments that exceed grant caps or require loan funding.
Good fit examples
- Renewable energy installations (solar panels, energy storage systems)
- Major facility upgrades (green building retrofits, carbon-neutral operations)
- Green fleet transition (electric vehicle fleet, charging infrastructure)
- Sustainable manufacturing equipment (large-scale efficiency investments)
- Carbon reduction infrastructure (emissions capture, recycling facilities)
How much
- Government risk-share: Up to 80% (enhanced from standard 70% for green initiatives)
- Loan quantum varies based on project scope
- Interest rates determined by Participating Financial Institution (PFI)
When
- Apply through a Participating Financial Institution (bank)
- For capital investments that need loan financing
How (fast path)
- Identify your green financing need and project scope.
- Approach a Participating Financial Institution (major banks offer EFS).
- Submit loan application with green project documentation.
- Bank evaluates creditworthiness; EFS risk-share automatically applies.
Where
- See more: Enterprise Financing Scheme (EFS)
5) Productivity Solutions Grant (PSG) — Carbon & ESG Management
Use PSG when: you want pre-approved ESG software for carbon accounting and sustainability data management.
Good fit examples
- Carbon management platforms (Scope 1, 2, 3 emissions tracking)
- ESG reporting software (GRI, TCFD, ISSB-aligned reporting)
- Sustainability data collection tools (automated data aggregation from operations)
- Carbon accounting automation (emission factor matching, audit trails)
How much
- Up to 50% of eligible costs
- S$30,000 annual cap per company (1 Apr—31 Mar grant year)
When
- Apply before any payment or contract signing
- Processing time: approximately 6 weeks
How (fast path)
- Browse pre-approved ESG solutions in the PSG catalogue (5 vendors available).
- Get vendor quote addressed to your ACRA entity name.
- Submit via BGP with financials and quote.
Where
- See more: Productivity Solutions Grant (PSG)
6) Enterprise Innovation Scheme (EIS) — Green R&D
Use EIS when: you are investing in green R&D or clean technology development and want enhanced tax deductions.
Good fit examples
- Clean technology R&D (developing new green products, materials, or processes)
- Environmental testing and prototyping (sustainable packaging, low-carbon manufacturing methods)
- Green product innovation (energy-efficient product design, biodegradable alternatives)
- Process innovation for sustainability (waste minimization, emissions reduction technologies)
- Collaboration with research institutions on green technology projects
How much
- 400% tax deduction on the first S$400,000 of qualifying R&D expenditure (per YA)
- Alternatively, a non-taxable cash payout option for businesses not yet profitable
- Covers staff costs, consumables, and outsourced R&D to approved institutions
When
- Claim during annual tax filing for qualifying expenditure incurred during the financial year
- No pre-approval required for in-house R&D (but must meet qualifying conditions)
- For outsourced R&D, the research institution must be approved
How (fast path)
- Identify qualifying green R&D activities (must seek to achieve scientific or technological advancement).
- Track qualifying expenditure: staff costs for R&D personnel, consumables, and outsourced research fees.
- Maintain documentation showing the R&D nature of activities and expenditure breakdown.
- Claim the enhanced deduction when filing your corporate tax return (Form C/C-S).
Where
- See more: Enterprise Innovation Scheme (EIS)
7) SkillsFuture Enterprise Credit (SFEC) — Green Training
Use SFEC when: you want to upskill your workforce in sustainability practices using available training credits.
Good fit examples
- Sustainability certification courses (ISO 14001 auditor training, ESG reporting courses)
- Green skills training (energy management, carbon accounting fundamentals)
- Environmental management programmes (waste management, circular economy workshops)
- Climate risk assessment training (TCFD framework, scenario analysis)
- Sustainability leadership development (executive sustainability strategy programmes)
How much
- S$10,000 credit per qualifying employer
- Can be used to offset up to 90% of out-of-pocket costs for supported programmes
- Usable for SSG-supported courses and certain WSQ programmes
When
- Check eligibility and remaining credit balance through the SkillsFuture portal
- Credits must be used before the expiry date (check current validity period)
How (fast path)
- Log in to the SkillsFuture portal to check your remaining SFEC balance.
- Identify sustainability-related courses from SSG’s supported course list.
- Enrol employees in qualifying programmes.
- Submit claim to offset training costs using SFEC.
Where
- See more: SkillsFuture Enterprise Credit (SFEC)
Sustainability Scenarios & Which Grant to Use
| Business Scenario | Grant | Funding | Timeline |
|---|---|---|---|
| Restaurant replacing kitchen equipment with energy-efficient models | EEG | Up to S$30K (70%) | 4—6 weeks |
| Retail store upgrading to LED lighting and efficient air-con | EEG | Up to S$30K (70%) | 4—6 weeks |
| Manufacturing facility implementing large-scale energy efficiency | EEG Advanced | Up to S$350K (70%) | 8—12 weeks |
| SGX-listed company preparing first ISSB sustainability report | SRG | Up to S$150K (30%) | 10—14 weeks |
| SME implementing carbon reduction and ISO 14001 certification | EDG | Up to S$500K (50—70%) | 8—12 weeks |
| Company redesigning supply chain for circular economy | EDG | Up to S$500K (50—70%) | 8—12 weeks |
| Company financing solar panel installation for factory | EFS-Green | Loan (80% risk-share) | Bank-dependent |
| Fleet operator transitioning to electric vehicles | EFS-Green | Loan (80% risk-share) | Bank-dependent |
| SME wanting carbon accounting software | PSG | Up to S$30K (50%) | 6 weeks |
| Cleantech startup developing green packaging materials | EIS | 400% tax deduction | Tax filing cycle |
| Manufacturer investing in emissions reduction R&D | EIS | 400% tax deduction | Tax filing cycle |
| Company training staff on ESG reporting and climate risk | SFEC | S$10K credit | Immediate |
| F&B chain training managers on energy management practices | SFEC | S$10K credit | Immediate |
Sustainability Pitfalls to Avoid
1. Choosing a grant that does not match your company size
- SRG requires SGX listing OR S$100M+ revenue — most SMEs do not qualify
- If you are an SME wanting sustainability support, start with EEG, PSG, or SFEC instead
- EEG requires specific SSIC codes: Manufacturing (10—32), Food Services (56), Retail (47), Construction (41—43)
2. Starting before approval (grants only)
- Do not sign contracts, make deposits, or start work before receiving your Letter of Offer
- Pre-purchased equipment is not eligible for reimbursement
- This applies to EEG, SRG, EDG, and PSG — not to EIS (tax scheme) or SFEC (credit)
3. Confusing SRG with PSG Carbon Solutions
- SRG: For preparing your first ISSB sustainability report (large companies only, up to S$150K)
- PSG Carbon Solutions: For carbon accounting software (SMEs eligible, up to S$30K)
- They serve different purposes and have different eligibility requirements
4. Treating EFS-Green as a grant
- EFS-Green is a loan with enhanced risk-sharing, not a grant
- You must repay the loan with interest to the bank
- Government shares default risk with bank, but borrower remains fully liable for repayment
5. Confusing EIS tax deductions with cash grants
- EIS provides tax deductions, not cash payments
- A 400% deduction means you deduct 4x the qualifying expenditure from taxable income
- If your company is not yet profitable, consider the cash payout option instead
6. Missing the pre-approved list requirement
- EEG Base Tier only covers equipment on the pre-approved list — check GoBusiness before getting quotes
- PSG only covers pre-approved software vendors — confirm your chosen vendor is listed
- For custom solutions not on pre-approved lists, consider EDG instead
7. Submitting vague project plans for EDG
- EDG requires detailed project plans with clear sustainability outcomes
- Applications stating “reduce carbon footprint” without specifics get rejected
- Be specific: which processes, what equipment, what metrics, what timeline, what measurable environmental impact
8. Forgetting to stack grants across different cost items
- You cannot claim the same expense under two grants, but you can use different grants for different parts of a sustainability programme
- Example: EEG for equipment upgrades + PSG for carbon software + SFEC for staff training — all in the same year
Frequently Asked Questions
What is the easiest sustainability grant to apply for?
The Energy Efficiency Grant (EEG) is the simplest option. You pick pre-approved energy-efficient equipment from a fixed list, and the grant covers up to 70% of the cost, capped at S$30,000. There is no need to write a detailed project proposal.
Can I apply for multiple sustainability grants at once?
Yes, you can apply for multiple grants simultaneously as long as you do not claim the same expense under more than one grant. For example, you could use EEG for equipment upgrades, PSG for carbon accounting software, and SFEC for staff training — all in the same year.
Do I need to be an SME to get sustainability grants?
Most sustainability grants like EEG, PSG, and SFEC are restricted to SMEs with annual turnover below S$100 million or fewer than 200 employees. However, EDG and the Enterprise Financing Scheme (EFS-Green) are open to larger companies as well.
How long does it take to get sustainability grant funding?
Approval timelines vary by grant. EEG and PSG approvals typically take 4-8 weeks. EDG applications, which require detailed project proposals, can take 8-16 weeks. All grants reimburse costs after you have completed the approved activities and submitted claims.
Can foreign-owned companies apply for sustainability grants?
It depends on the grant. EEG and SFEC do not require 30% local shareholding, so foreign-owned Singapore-registered companies can apply. However, EDG and PSG require at least 30% local shareholding, which excludes most fully foreign-owned companies.
Related Guides & Resources
Related Industry Guides
- Green Transition & ESG Grants Hub — focused guide on ESG compliance and reporting grants
- Cleantech Startup Grants — funding for clean technology ventures
Grant Decision Guides
- SRG vs EEG Decision Matrix — sustainability reporting vs equipment funding
- EEG vs PSG Decision Matrix — energy efficiency vs productivity solutions
- EFS vs Grants Decision Matrix — loans vs subsidies
Scheme Details
- Energy Efficiency Grant (EEG)
- Sustainability Reporting Grant (SRG)
- Enterprise Development Grant (EDG)
- Enterprise Financing Scheme (EFS)
- Productivity Solutions Grant (PSG)
- Enterprise Innovation Scheme (EIS)
- SkillsFuture Enterprise Credit (SFEC)
Application Guides
- Common Grant Pitfalls — mistakes that get applications rejected
- Singapore Grants Glossary — definitions of grant terminology
- Corppass Setup Guide — how to set up BGP access
Official Links
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