Singapore introduced a transition framework in 2023 to support companies in emissions-intensive trade-exposed sectors such as chemicals, electronics and biomedical manufacturing in their energy transition.
“The allowances will only be provided for a proportion of the companies’ emissions, and are based on internationally recognised efficiency benchmarks where available, or the ambition and robustness of companies’ decarbonisation plans,” a spokesperson for the Ministry of Trade and Industry.
Under Singapore’s new taxation rate for carbon emissions, which took effect on Jan 1, businesses that emit more than 25,000 tonnes of carbon annually pay $25 per tonne until 2025, compared with $5 per tonne from 2019 to 2023.
The rate will subsequently go up to $45 per tonne in 2026 and 2027, and between $50 and $80 per tonne by 2030, the Singapore Government announced in 2022.
