Singapore's Finance Minister Lawrence Wong has said in parliamentary interpellation that the government plans to raise the carbon tax in its 2022 Budget.
Singapore has imposed a carbon tax since January 1, 2019, making it the first carbon pricing scheme in Southeast Asia. It is applied without exemption to all sectors, including energy-intensive and trade-exposed sectors.
The carbon tax rate, which is SGP5 per ton of CO2 equivalent emitted, will be applied until 2023. It covers direct emissions of carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, hydrofluorocarbons, and perfluorocarbons from facilities emitting 25 kt carbon dioxide or more per year.
During the interpellation, Wong was asked about the ongoing and planned public consultation initiatives for soliciting the views of enterprises and the general public on Singapore's post-2023 carbon tax level.
He responded, “As part of engagements under the Singapore Green Plan 2030, our agencies have been consulting the public on the carbon tax review for the past six months. The need for a greater carbon tax as well as the trade-offs involved in our green transition have been discussed. Before finalizing the Budget 2022, the public can also offer feedbacks via platforms like REACH and the People's Association (PA).”
Wong stated that the government is talking to business about the implications of a higher carbon tax and the assist that they can offer in the transition to low-carbon operations and pursuit of green growth prospects. Meanwhile, the government is also talking to other stakeholders like environmental groups on the green transition.
He also said, “The carbon pricing review will take into account the feedback obtained from these consultations. At Budget 2022, the government will unveil the new carbon tax rate for the years after 2023.”
