SINGAPORE- Singapore will increase its carbon tax fivefold to S$25 ($18.60) a ton in 2024, Finance Minister Lawrence Wong said, in an attempt to meet its zero-emissions target by around 2050.
The city state, a major Asian oil refining and petrochemical export center, plans to increase the carbon tax further to S$45 in 2026 and 2027, and S$50 to S$80 by 2030, Wong said on Friday in a budget speech.
From 2024, businesses will be allowed to buy international carbon credits to offset up to 5 percent of their taxable emissions, he added.
“This will moderate the impact for companies,” Wong said. “It will also help to create local demand for high-quality carbon credits and catalyze the development of well-functioning and regulated carbon markets.”
Carbon credits are certified instruments to represent emission reductions at climate action projects and are traded by companies to offset emissions elsewhere.
