The Singaporean government plans to increase the city-state's carbon tax rate from SGD5/tCO2eq (US$3.7/tCO2eq) to SGD50-80/tCO2eq (US$37-59.5/tCO2eq) by 2030, with the aim to reach net-zero emissions by 2050. The tax rate will go up to SGD25/tCO2eq in 2024 and 2025, and SGD45/tCO2eq in 2026 and 2027, before reaching SGD50/tCO2eq to SGD80/tCO2eq in 2030.
Singapore's carbon tax currently applies to all facilities producing 25,000tCO2eq/year or more of greenhouse gas (GHG) emissions, covering 30 to 40 large emitters such as oil refineries and power generation plants, which contribute 80% of the city-state's GHG emissions. Gasoline, diesel and CNG will not be submitted to an additional carbon tax, as they already have excise duties that will be adjusted periodically.
Proceeds from the tax will support decarbonisation efforts and will seek to cushion the impact on households through additional GSTV or U-Save rebates as of 2023 and on businesses through existing schemes such as the Resource Efficiency Grant for Energy and the Energy Efficiency Fund.
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