Gov't to increase carbon tax to $25 per tonne in 2024

A transition framework will be set to help companies adjust.

Singapore will increase its carbon tax to $25 per tonne in 2024, and eventually to $50 to $80 per tonne in 2030, in a bid to achieve its green targets by or around mid-century.

The government said the move will support the state's climate ambition “and secure a greener and more sustainable living environment for future generations whilst being economically competitive in a low-carbon future.”

“This will provide a strong price signal and impetus for businesses and individuals to reduce their carbon footprint in line with national climate goals,” the government added.

To give existing emissions-intensive trade-exposed companies more time to adjust to the hikes, the government will lay out a transition framework that provides for “transitory allowances for part of" companies' emissions.

These allowances “will be determined based on efficiency standards and decarbonisation targets.”

Apart from imposing a carbon tax hike, the government will also continue schemes such as Resource Efficiency Grant for Energy and the Energy Efficiency Fund to help businesses in their decarbonisation efforts.

The government is likewise reviewing its  support measures for businesses to implement needle-moving decarbonisation solutions “to make them more competitive in the medium term.”

Read more: How the carbon tax hike will help SG achieve its 2030 green targets?