This law requires the reporting of and the payment of a tax in relation to greenhouse gas emissions, and amends the Energy Conservation Act.
The 2018 budget law stipulated that Singapore will impose a carbon tax entering into force in 2019. All facilities producing 25,000 tonnes or more of greenhouse gas emissions in a year will have to pay a carbon tax. The carbon tax will initially be S$5 per tonne of greenhouse gas emissions from 2019 to 2023. The Government will review the carbon tax rate by 2023, with plans to increase it to between S$10 and S$15 per tonne of emissions by 2030. The the 2022 budget, presented by the government in March 2022, considerably hikes these figures. The tax should be put at S$25 in 2024 and 2025, and S$45 in 2026 and 2027. The 2030 target now stands at between S$50 and S$80.
This Act was amended in 2022. The Carbon Pricing Amendment t Act introduces a progressive increase in carbon tax rates, sets up an International Carbon Credits (ICC) framework, and implements an industry transition framework allowing Emission-Intensive Trade-Exposed (EITE) sectors to receive transitory allowances. It further revises the list of greenhouse gases (GHG).
