# Singapore's carbon tax is S$45 a tonne for 2026 and 2027, up from S$25

_Published 2026-11-12 · Event 2026-01-01 · Policy and institutions · Singapore · https://asiacarbondesk.com/news/20261112-sg-tax-45/_

Singapore's carbon tax has been S$45 per tonne of CO2e since 1 January 2026, up 80% from S$25 in 2024 and 2025.
The rate applies to about 50 facilities that each emit at least 25,000 tCO2e a year, covering around 70% of national emissions.
The Government's stated range for 2030 remains S$50 to S$80, and the path from 2028 is under review.

## What happened

The National Environment Agency (NEA) lists the carbon tax at S$45 per tonne of CO2e for emissions years 2026 and 2027. The rate took effect on 1 January 2026, so the first payments at the new level fall due in 2027, when facilities settle tax on their 2026 emissions. Under section 17 of the Carbon Pricing Act, tax assessed for an emissions year is due by 30 September of the following year, or 30 days after the notice of assessment is served if that is later.
The tax is charged on direct emissions from facilities whose annual emissions reach 25,000 tCO2e. These are mainly in manufacturing, power, waste and water. The National Climate Change Secretariat (NCCS) puts the number of taxable facilities at about 50 and the share of national greenhouse gas emissions they cover at around 70%. Adding fuel excise duties on transport fuels, the share priced in some form is about 80%.
Under the same section, facilities pay by surrendering fixed-price carbon credits equal in value to the tax charged. Since 1 January 2024 they may also use eligible international carbon credits to cover up to 5% of their taxable emissions.

## Background

Singapore introduced the tax on 1 January 2019 at S$5 per tonne. It was the first carbon price anywhere in Southeast Asia. The legal basis is the Carbon Pricing Act 2018.
Budget 2022, announced on 18 February 2022, set the current path: S$25 for 2024 and 2025, S$45 for 2026 and 2027, and S$50 to S$80 by 2030. Parliament passed the amending law on 8 November 2022 and it took effect on 1 January 2024. The 2024 rate was five times the starting rate, and the 2026 step adds a further 80%.
In a parliamentary reply dated 5 August 2026, the Government stated that the trajectory for 2028 and beyond is under review and that future rates will be announced in advance. No rate for 2028 has been published. NCCS also sets out that an increase of S$5 per tonne adds roughly 1% to electricity tariffs, and that the S$45 rate adds about S$3 a month for an average four-room public housing flat.

## Carbon price levels and coverage in five Asian compliance schemes

| Scheme | Price reference | Who is covered | Share of national emissions |
|---|---|---|---|
| Singapore carbon tax | S$45/tCO2e (2026-2027) | Facilities emitting 25,000 tCO2e or more | Around 70% |
| Taiwan carbon fee | General rate NT$300/tCO2e (from 2025) | Plants in power, gas supply and manufacturing emitting 25,000 tCO2e or more | About 54% (pre-launch estimate) |
| Japan GX-ETS | Ceiling JPY 4,300, floor JPY 1,700 per t (FY2026) | Companies emitting 100,000 t CO2 or more | Nearly 60% |
| Korea K-ETS | No set price; shortfall penalty up to 3 times the year's average market price | Companies averaging 125,000 tCO2e, or sites of 25,000 tCO2e | Not stated in the sources used |
| China national ETS | Close CNY 97.90/t (end-August 2026, as published by the Ministry of Ecology and Environment) | Entities emitting 26,000 tCO2e or more | Over 65% |

Prices are in local currency and are not converted. Singapore and Taiwan set fixed rates by law; Japan's figures are regulatory price bounds; Korea's rule is a legal penalty formula; China's is a market price as published by the national ministry.

## What is next

- No further dates are set in the official texts we checked.

## Sources

- [Carbon Tax](https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax) (National Environment Agency, checked 2026-11-12)
- [Carbon Tax (Mitigation Efforts)](https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/) (National Climate Change Secretariat, checked 2026-11-12)
- [Parliamentary Reply by DPM Gan on Singapore's Carbon Tax Trajectory from 2028 (5 August 2026)](https://www.nccs.gov.sg/media/parliamentary-reply-by-dpm-gan-on-singapore-s-carbon-tax-trajectory-from-2028/) (National Climate Change Secretariat, checked 2026-11-12)
- [Carbon Pricing Act 2018](https://sso.agc.gov.sg/Act/CPA2018?WholeDoc=1) (Singapore Statutes Online, checked 2026-11-12)
- [Budget Statement FY2022](https://isomer-user-content.by.gov.sg/153/2df7e174-4cfc-4cfe-9929-d28186d8299f/fy2022_budget_statement.pdf) (Ministry of Finance, checked 2026-11-12)
- [Reference ceiling and adjustment reference prices (METI Notice No. 27, 2026-03-30)](https://www.meti.go.jp/policy/energy_environment/global_warming/torihikikakaku.pdf) (Ministry of Economy, Trade and Industry (Japan), checked 2026-11-12)
- [National Carbon Market Development Report (2026)](https://www.mee.gov.cn/ywgz/ydqhbh/wsqtkz/202609/W020260920730894576289.pdf) (Ministry of Ecology and Environment (China), checked 2026-11-12)
- [Act on the Allocation and Trading of Greenhouse Gas Emission Permits](https://www.law.go.kr/법령/온실가스배출권의할당및거래에관한법률) (Korea Ministry of Government Legislation (National Law Information Center), checked 2026-11-13)
- [MOENV carbon fee rate review meeting (2 Nov 2026)](https://enews.moenv.gov.tw/moenv-news/zh-tw/News/14412) (Ministry of Environment (Taiwan), checked 2026-11-13)
- [Regulations Governing the Collection of Carbon Fees](https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=O0020139) (Laws & Regulations Database of the ROC (Ministry of Justice), checked 2026-11-13)
- [Carbon Fee section](https://www.cca.gov.tw/affairs/carbon-fee-fund/2301.html) (Climate Change Administration, Ministry of Environment (Taiwan), checked 2026-11-13)

Data book: https://asiacarbondesk.com/singapore-carbon-tax/, https://asiacarbondesk.com/taiwan-carbon-fee/, https://asiacarbondesk.com/japan-gx-ets/, https://asiacarbondesk.com/korea-k-ets/, https://asiacarbondesk.com/china-national-ets/