Carbon Tax in Singapore

Does Singapore have a carbon tax? Who needs to pay it?

Yes. It is currently $5 per tonne, but will be raised to $25 per tonne in 2024. Industrial facilities with greenhouse gas emissions equal to or above 25,000 tCO2e annually will be taxed.

According to NCCS (Pages),

Singapore is the first country in Southeast Asia to introduce a carbon price. The carbon tax, at S$5 per tonne of greenhouse gas emissions (tCO2e), was introduced in 2019 through the Carbon Pricing Act (CPA).

According to NEA (Pages),

The Carbon Pricing Act (CPA) and its accompanying Regulations came into operation on 1 Jan 2019.

The Measurement, Reporting and Verification (MRV) requirements are specified in the Carbon Pricing (Measurement, Reporting and Verification) Regulations 2018 which can be found here.

Reporting of emissions only (Reportable Facility)

Under the Carbon Pricing Act, the responsibility rests with any industrial facility that emits direct greenhouse gas (GHG) emissions equal to or above 2,000 tCO2e annually to register as a reportable facility and to submit an Emissions Report annually.

Facilities would have to consider emissions arising from both Fuel Combustion (FC) and Industrial Processes and Product Uses (IPPU).

Reporting of emissions and payment of carbon tax (Taxable Facility)

Any industrial facility that emits direct GHG emissions equal to or above 25,000 tCO2e annually will be required to be registered as a taxable facility and to submit a Monitoring Plan and an Emissions Report annually.

Taxable facilities will also have to pay a carbon tax from 1 Jan 2019 onwards for reckonable GHG emissions. The carbon tax is set at a rate of $5 per tonne of GHG emissions (tCO2e) from 2019 to 2023. To achieve our climate ambition, the carbon tax rate will be raised to $25/tCO2e in 2024 and 2025, and $45/tCO2e in 2026 and 2027, with a view to reaching $50-80/tCO2e by 2030.