About Climate Change | Ministry of Sustainability and the Environment

Singapore implemented a carbon tax in 2019. The tax sends a transparent, fair and consistent price signal to incentivise emitters to reduce their emissions, while giving them the flexibility to act where it makes business sense.

The carbon tax is levied on facilities that emit 25,000 tonnes of CO₂-equivalent (tCO₂e) or more annually, and applies uniformly to all sectors without exemption. The tax was set at $5/tCO₂e from 2019 to 2023 as a transition period to give the industry time to adjust to its impact. To support our net zero target, the carbon tax will be raised to $25/tCO₂e in 2024 and 2025, and $45tCO₂e in 2026 and 2027, with a view to reaching $50-80 tCO₂e by 2030. This will strengthen the price signal and impetus for businesses and individuals to reduce their carbon footprint in line with national climate goals.

The Government is prepared to spend more than the expected carbon tax revenue of about $1 billion over the first five years to support projects that reduce emissions.