We encourage companies to reduce their carbon footprint by improving their carbon and energy efficiency, developing and deploying low carbon technologies, and developing the relevant capabilities.

The Government provides targeted support through initiatives such as:

• The Energy Efficiency Fund (E2F) - supports efforts by businesses with industrial facilities to improve energy efficiency
  
  

• The Resource Efficiency Grant for Energy - offered to manufacturing facilities and data centres
  
  

• The Enterprise Sustainability Programme by Enterprise Singapore - supports SMEs in developing capabilities for sustainability.
  
  

The carbon tax is also part of a comprehensive suite of measures to nudge companies into early adoption of technologies for decarbonisation. The carbon tax covers 80% of our total greenhouse gas emissions from about 50 facilities.

In 2022, the Government announced that the carbon tax will be progressively raised from the current $5 per tonne to:

• $25 per tonne in 2024 and 2025;

• $45 per tonne in 2026 and 2027, and

• with a view of reaching $50 - $80 per tonne by 2030.
  
  

A transition framework will be introduced to give existing emissions-intensive trade-exposed (EITE) companies transitory allowances for part of their emissions and time to adjust to a low-carbon economy.

For more information, please refer to nccs.gov.sg.