The carbon tax forms part of Singapore’s comprehensive suite of climate change mitigation measures. It provides a broad-based price signal across the economy to encourage companies to reduce their emissions yet gives them flexibility to act where it makes the most economic sense. This will accelerate the economic transformation to a future-ready green economy by enhancing the business case to implement energy efficiency improvements and other emissions reduction solutions. This also ensures the long-term viability of business investments and activities in a carbon-constrained world.

To achieve Singapore's net zero goals by or around mid-century, we have to move decisively and strengthen the impetus for businesses and individuals to reduce our carbon footprint. One of our strategies is to introduce the carbon tax in 2019 at an initial rate of $5 per tonne of emissions from 2019 to 2023, to provide a transitional period for businesses to adjust.

The Government will raise the carbon tax to:

• $25 per tonne in 2024 and 2025;

• $45 per tonne in 2026 and 2027;and

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

As of June 2022, 46 national and 36 sub-national jurisdictions have implemented carbon pricing. These jurisdictions account for roughly 23% of global greenhouse gas emissions.

Jurisdictions such as Finland, Norway and Sweden have implemented carbon pricing as early as the 1990s. Other jurisdictions within the region that have announced plans to price carbon and introduce new carbon regulations include Brunei and Indonesia.