The government of Singapore will introduce a carbon tax for all facilities producing 25 kt of CO2/year or more as of 2020 in order to meet its commitments under the 2015 UNFCC Paris Agreement. The carbon tax rate will be set at SGD5 /tCO2eq (approximately US$3.8/tCO2eq) for emissions between 2019 and 2023 and may be doubled or tripled to SGD10-15/tCO2eq (US$7.6-11.4/tCO2eq) by 2030.
The new carbon tax will apply to approximately 30-40 large emitters that contribute 80% of Singapore’s CO2 emissions will be concerned, mostly from the petroleum refining, chemicals and semiconductor sectors. The government expects the tax to raise nearly SGD 1bn (US$760m) over the first five years, but it would invest more than this amount "to support worthwhile projects which deliver the necessary abatement in emissions".
Singapore committed to reducing its emissions intensity by 36% from 2005 levels by 2030 and to stabilise its emissions to peaking around 2030 levels.