The Singaporean Parliament has approved the government’s Carbon Pricing Bill, a new tax on carbon emissions, which will be introduced from 2019 onwards and charge large emitters with SGD5/tCO2eq (approximately US$3.8/tCO2eq). The tax level will be reviewed by 2022 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, mostly from the power generation, petroleum refining, chemicals and semiconductor sectors. The government expects the tax to raise nearly SGD1bn (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 has committed to reducing its emissions intensity by 36% from 2005 levels by 2030 and to stabilise its emissions to peaking around 2030 levels. The government will also enhance energy efficiency support schemes.
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