Singapore Carbon Tax Explained: Why We Need It and How Rates Rise to 2030
Why does Singapore put a price of S$25 to S$80 on every tonne of carbon emissions? In Episode 1 of GreenCo's "Carbon Tax" learning series, we explain the purpose of Singapore's carbon tax, how the rate is rising, and how the Carbon Pricing Act (CPA) supports Singapore's goal of reaching net zero emissions by 2050.
What You'll Learn in This Video
- The purpose of a carbon tax – putting a price on greenhouse gas emissions gives businesses a financial incentive to choose low-carbon technologies and processes.
- The carbon tax timeline – S$5/tCO2e from 2019 to 2023, S$25/tCO2e in 2024 and 2025, S$45/tCO2e in 2026 and 2027, and a planned S$50–80/tCO2e by 2030.
- The Carbon Pricing Act – the law behind the tax, and the key amendments made since it took effect in 2019.
Why It Matters for Singapore Businesses
Singapore was the first country in Southeast Asia to introduce a carbon tax. With the rate at S$45 per tonne for 2026 emissions, carbon costs are becoming a material line item for large emitters and a key factor in budgeting, capital investment and decarbonisation planning.
Watch the Full Carbon Tax Series
Next: Episode 2 – Who Pays Singapore's Carbon Tax?
#CarbonTax #NetZero #ClimateAction #Singapore #Sustainability #ESG #GreenEconomy
Learn with GreenCo: All-Round ESG Advisory, Built from Scratch
These learning videos are produced by GreenCo, an ESG and climate risk advisory firm in Singapore and Hong Kong that has supported more than 80 listed companies since 2016. We provide all-round ESG advisory services under one roof, from sustainability reporting and climate disclosures to GHG accounting, climate scenario analysis, ESG ratings and assurance. We can build your ESG framework, data processes and reports from scratch, and our consultants stay actively involved throughout the whole project, not just at kick-off and sign-off.
We use AI and digital tools to work faster, but AI is a tool, not the advice. The real value comes from our consultants' professional judgement: understanding your business, interpreting the rules, challenging the numbers and making sure every disclosure stands up to scrutiny.
Our Values
- Integrity – credible, decision-useful disclosures, prevent greenwashing.
- Partnership – hands-on involvement from day one to end of project.
- Tailored expertise – solutions built around your business.
- Knowledge sharing – making ESG regulations clear and accessible for everyone.
- Innovation – using technology to make sustainability work more efficient.
Our Team's Professional Credentials
- Fellow Certified Public Accountant (FCPA)
- Chartered Financial Analyst (CFA) – CFA Institute
- Financial Risk Manager (FRM) – Global Association of Risk Professionals (GARP)
- Certified ESG Analyst (CESGA)
- Sustainable Investing Certificate – CFA Institute
- GRI Certified Professional
- Practitioner Member – Institute of Sustainability and Environmental Professionals (ISEP)
- GRI Certified Sustainability Professional – Global Reporting Initiative (GRI)