Carbon Pricing Act

Singapore’s Carbon Pricing Act, implemented on 1 January 2019, establishes a carbon tax on facilities emitting 25 ktCO₂e or more annually, covering power generation and large industrial sources. The tax was initially set at SGD 5/tCO₂e for 2019-2023 and was increased to SGD 25/tCO₂e for 2024-2025. It is scheduled to rise further to SGD 45/tCO₂e in 2026–2027, with a target range of SGD 50-80/tCO₂e by 2030.

The policy applies upstream to major emitters, including power plants, and indirectly affects electricity prices. Recent updates allow limited use of high-quality international carbon credits to offset a portion of taxable emissions, while maintaining the tax as Singapore’s primary carbon pricing instrument.

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