Policy and institutions · Singapore

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

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.

1 Jan 2026Policy and institutionsSingaporePublished 12 Nov 2026
Singapore's central business district skyline seen from the Singapore River
Singapore's central business district skyline seen from the Singapore River. Photo: Diego Delso, CC BY-SA 4.0, source. Resized only; no other change.
Report

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.

Context

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.

Data

How it compares

Carbon price levels and coverage in five Asian compliance schemes

SGD/tCO2e012.52537.5502019202120232025202745

Source: Singapore Statutes Online, Attorney-General's Chambers; National Climate Change Secretariat (NCCS); Ministry of Environment (MOENV); Climate Change Administration (CCA), Ministry of Environment; Laws & Regulations Database of the ROC (Ministry of Justice); METI; METI (Industrial Structure Council); Korea Ministry of Government Legislation, National Law Information Center (law.go.kr); Ministry of Ecology and Environment (MEE). Checked 2026-11-12. 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.

Table of the same figures
SchemePrice referenceWho is coveredShare of national emissions
Singapore carbon taxS$45/tCO2e (2026-2027)Facilities emitting 25,000 tCO2e or moreAround 70%
Taiwan carbon feeGeneral rate NT$300/tCO2e (from 2025)Plants in power, gas supply and manufacturing emitting 25,000 tCO2e or moreAbout 54% (pre-launch estimate)
Japan GX-ETSCeiling JPY 4,300, floor JPY 1,700 per t (FY2026)Companies emitting 100,000 t CO2 or moreNearly 60%
Korea K-ETSNo set price; shortfall penalty up to 3 times the year's average market priceCompanies averaging 125,000 tCO2e, or sites of 25,000 tCO2eNot stated in the sources used
China national ETSClose CNY 97.90/t (end-August 2026, as published by the Ministry of Ecology and Environment)Entities emitting 26,000 tCO2e or moreOver 65%
Ahead

What is next

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

Record

Sources

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