A carbon tax encourages emitters to reduce pollution levels and look for alternatives that has lower impacts on the environment.

Singapore introduced a carbon tax in 1 Jan 2019. The carbon tax rate is set at S$5/tCO₂e (tonnes-t of carbon dioxide-CO2 equivalent) from 2019 to 2023. The carbon tax rates will be reviewed by 2022, to give time for businesses to adapt to the new revisions.

There are two emissions threshold, a reportable facility and a taxable facility. Facilities would have to consider emissions generated from Fuel Combustion (FC) and Industrial Processes and Product Uses (IPPU).

1. Reportable Facility 

• Any industrial facility that emits direct greenhouse gas (GHG) emissions between 2,000 – 25,000 tCO2e annually
• To register as a reportable facility through the Emissions Data Monitoring and Analysis (EDMA) System
• Submit an annual emissions report
• No carbon tax liability

2. Taxable Facility 

• Any industrial facility that emits direct greenhouse gas (GHG) emissions equal to or above 25,000 tCO2e annually
• To register as a taxable facility through the Emissions Data Monitoring and Analysis (EDMA) System
• Submit an annual third party-verified emissions report
• Submit a monitoring plan
• Carbon tax payable