Singapore implemented the first carbon pricing scheme in Southeast Asia, on 1 January 2019. The carbon tax is levied on facilities that directly emit at least 25,000 tCO2e of greenhouse gas (GHG) emissions annually: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). From 2024 onwards, the carbon tax coverage will be expanded to include nitrogen trifluoride (NF3) emissions.
Initially set at S$5/tCO2e for the the period 2019 to 2023, to provide a transitional period for emitters to adjust, the carbon tax will be raised to S$25/tCO2e in 2024 and 2025, and S$45/tCO2e in 2026 and 2027, with a view to reaching S$50-80/tCO2e by 2030 (S$ 1= US$ 0,75)
Companies may use high quality international carbon credits to offset up to 5% of their taxable emissions from 2024. All international carbon credits used under the carbon tax regime will need to adhere to a set of eligibility criteria, to ensure that they are of high environmental integrity and compliant with Article 6 of the Paris Agreement. For that, Singapore’s National Environment Agency (NEA) has signed separate memorandums of understanding (MOU) with Gold Standard and Verra, two of the world’s largest international carbon offset standard programs. Click here for Verra's press release.
Singapore has also entered into an MOU for carbon credits collaboration with several countries, including Colombia and Peru.
Click at the image below to read more about that, including a Q&A from the Singapore National Climate Change Secretariat (NCCS).
