Singapore · Carbon tax + international credits

Singapore: a S$45 carbon tax, with up to 5% paid in international credits

Southeast Asia's first carbon price. About 50 large facilities pay S$45 per tonne of CO2e for 2026–27, and may use eligible international credits for up to 5% of their taxable emissions. Supply of those credits is still being built.

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.
Summary

In brief

The carbon tax is S$45 per tonne CO2e for 2026 and 2027, up from S$25 in 2024–25 and S$5 in 2019–23; the Government aims for S$50–80 by 2030.

It applies to about 50 facilities emitting 25,000 tCO2e or more a year and covers around 70% of national greenhouse gas emissions.

Facilities may offset up to 5% of taxable emissions with eligible international carbon credits, but as of 2 November 2026 no project is yet registered under the 12 signed agreements.

Unused 2025 credit quota rolls into 2026 at a conversion factor of 25/45; the 2024 quota expired.

Data

Rate and agreements in charts

The tax rate steps up in 2024 and 2026. Coverage and the number of credit agreements show how the system around the tax is growing.

Carbon tax rate by emissions year, with the 2030 ambition (S$ per tCO2e)

Carbon tax rate02550751002019202120232025202720302030 ambition S$50–8052545

Source: Singapore Statutes Online, Attorney-General's Chambers; National Climate Change Secretariat (NCCS). Checked 2026-11-12. Solid: rates set in the Act's schedule. The path after 2027 is under review and no rate is set for 2028–2029; the shaded wedge shows only the stated 2030 range.

Table of the same figures
PeriodCarbon tax rate
20195
20205
20215
20225
20235
202425
202525
202645
202745
2028—
2029—
2030—

Implementation agreements signed, cumulative (end of year)

agreements03.757.511.25152023202420252026121012

Source: Singapore's Carbon Markets Cooperation (Government of Singapore). Checked 2026-11-12.

Table of the same figures

Share of national emissions covered by the carbon tax (%)

%025507510020192022 (pre-rebasing)2022 (rebased)202680767170

Source: National Climate Change Secretariat (NCCS). Checked 2026-11-12. 2022 was re-based after HFC accounting changed.

Table of the same figures
Period%Source (checked)
201980National Climate Change Secretariat (NCCS) 2026-11-12
2022 (pre-rebasing)76National Climate Change Secretariat (NCCS) 2026-11-12
2022 (rebased)71National Climate Change Secretariat (NCCS) 2026-11-12
202670National Climate Change Secretariat (NCCS) 2026-11-12
Chronology

Timeline

Red dates are still ahead.

From the 2018 Act to the 2030 ambition

  • 2018-03-20Parliament passes the Carbon Pricing Act.
  • 2019-01-01Carbon tax starts at S$5 per tCO2e, the first carbon pricing scheme in Southeast Asia.
  • 2020First tax payments, based on 2019 emissions.
  • 2022-02-18Budget 2022 announces the rate path: S$25 in 2024–25, S$45 in 2026–27, S$50–80 by 2030.
  • 2022-11-08Carbon Pricing (Amendment) Act 2022 passed; allows international credits up to a limit.
  • 2024-01-01Rate rises to S$25; facilities may offset up to 5% of taxable emissions with international credits.
  • 2025-10-06Mongolia signs an implementation agreement.
  • 2026-01-01Rate rises to S$45 for 2026 and 2027.
  • 2026-09-04Lao PDR signs an implementation agreement, the 12th.
  • 2027-09-30Payment deadline for 2026 emissions (rule: 30 September of the following year).
  • 2030Government ambition: S$50–80 per tCO2e.

Source: Singapore Statutes Online, Attorney-General's Chambers; Ministry of Finance (MOF); Singapore's Carbon Markets Cooperation (Government of Singapore); National Climate Change Secretariat (NCCS).

Mechanism

How it works

The yearly cycle for a taxable facility, and where international credits fit.

How the tax is paid

  1. Step 1

    Register

    By 30 June of the year after the facility first passes the threshold.

  2. Step 2

    Plan and measure

    Monitoring Plan by 31 December of that year; direct (Scope 1) emissions measured.

  3. Step 3

    Report

    Third-party verified Emissions Report by 30 June of the following year.

  4. Step 4

    Pay by 30 September

    Pay by surrendering fixed-price carbon credits bought from the Government.

  5. Step 5

    Optional offset

    Up to 5% of taxable emissions may be covered with eligible international credits.

Source: National Environment Agency (NEA); Singapore Statutes Online, Attorney-General's Chambers.

Coverage

Scope

Two thresholds decide what a facility must do.

Who is covered

Source: Singapore Statutes Online, Attorney-General's Chambers; NCCS; National Environment Agency (NEA); National Climate Change Secretariat (NCCS); Ministry of Finance (MOF). Checked 2026-11-12.

Table of the same figures
ItemRule
First threshold (reportable)2,000 tCO2e — measure and report only; no tax
Second threshold (taxable)25,000 tCO2e — verified report plus carbon tax
SectorsManufacturing; power, gas, steam and chilled water supply; water, sewage and waste
Gases7 greenhouse gases: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3
Emissions countedDirect (Scope 1) emissions from fuel combustion and industrial processes
Not taxed separatelyPetrol, diesel and CNG: excise duties apply instead
Facilities taxedAbout 50
Share of national emissionsAround 70% (about 80% with transport-fuel excise)
Offsets

Credits and offsets

International credits can cover part of the bill, but the supply chain is new.

International carbon credits (ICC) at a glance

Source: National Environment Agency (NEA); National Climate Change Secretariat (NCCS); Singapore's Carbon Markets Cooperation (Government of Singapore). Checked 2026-11-12.

Table of the same figures
ItemStatus
Offset limitUp to 5% of taxable emissions, from 1 January 2024
Quality testArticle 6 compliance plus seven integrity principles
Credit windowReductions or removals between 1 Jan 2021 and 31 Dec 2030
Where fromOnly host countries with an implementation agreement
Agreements signed12 (CMC FAQ, 2 Nov 2026); NEA's page, updated 19 Aug 2026, says 11
Agreements in force9 of 12 (all except Paraguay, Papua New Guinea, Philippines)
Countries with an eligibility list6: Ghana, Bhutan, Peru, Rwanda, Thailand, Mongolia
Projects registered0 (as of 2 Nov 2026)
Time to first creditsUp to four years per project
Retirement registries5: ACR, ART, Global Carbon Council, Gold Standard, Verra
Roll-over2024 quota expired; unused 2025 quota carries to 2026 × 25/45 (example: 4,000 → 2,222)
Proceeds / cancellation5% of proceeds to adaptation; 2% of authorised credits cancelled
Reference

All figures

80 figures with numbers, each linked to the official text with the date we checked it.

ItemValueSource (checked)
Carbon tax rate, emissions years 2019-2023S$5/tCO2eSingapore Statutes Online, Attorney-General's Chambers 2026-11-12
Carbon tax rate, emissions years 2024-2025S$25/tCO2eSingapore Statutes Online, Attorney-General's Chambers 2026-11-12
Carbon tax rate, emissions year 2026 onwards (stated for 2026-2027)S$45/tCO2eSingapore Statutes Online, Attorney-General's Chambers 2026-11-12
2030 rate ambition (current)S$50-80/tCO2e by 2030National Climate Change Secretariat (NCCS) 2026-11-12
2030 ambition, lower boundS$50/tCO2eMinistry of Finance (MOF) 2026-11-12
2030 ambition, upper boundS$80/tCO2eMinistry of Finance (MOF) 2026-11-12
2030 ambition as set in Budget 2018 (superseded)S$10-15/tCO2e by 2030Ministry of Finance (MOF) 2026-11-12
Fixed-price carbon credit (FPCC) value by purchase yearS$5 (bought 2024 or earlier); S$25 (2025-26); S$45 (2027 onwards)Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Post-2027 trajectory statusUnder review; future rates to be announced in advanceNCCS / Prime Minister's Office 2026-11-12
Carbon Pricing Bill first reading2 March 2018Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Carbon Pricing Act passed (second and third readings)20 March 2018Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Carbon Pricing Act commencement / tax start1 January 2019Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
First carbon pricing scheme in Southeast AsiaImplemented 1 January 2019National Climate Change Secretariat (NCCS) 2026-11-12
First carbon tax payment2020, based on 2019 emissionsMinistry of Finance (MOF) 2026-11-12
Budget 2022 announcement of rate increases18 February 2022Ministry of Finance (MOF) 2026-11-12
Budget 2022 rate pathS$25 (2024-25), S$45 (2026-27), S$50-80 by 2030Ministry of Finance (MOF) 2026-11-12
Carbon Pricing (Amendment) Bill first reading3 October 2022Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Carbon Pricing (Amendment) Act 2022 passed8 November 2022Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Amended Regulations published6 October 2023National Environment Agency (NEA) 2026-11-12
Amendment Act commencement1 January 2024Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
First emissions threshold (reportable facility)2,000 tCO2eSingapore Statutes Online, Attorney-General's Chambers 2026-11-12
Second emissions threshold (taxable facility)25,000 tCO2eSingapore Statutes Online, Attorney-General's Chambers 2026-11-12
Reportable facilities: measured and reported but not taxed2,000-<25,000 tCO2e: report only, no taxNCCS 2026-11-12
Taxable facilities: verified reporting plus taxMonitoring Plan, third-party verified Emissions Report, carbon taxNational Environment Agency (NEA) 2026-11-12
Covered sectorsManufacturing; power/gas/steam/chilled water supply; water, sewage and wasteNational Environment Agency (NEA) 2026-11-12
Number of covered greenhouse gases7 gases: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3National Climate Change Secretariat (NCCS) 2026-11-12
Emissions basisDirect (Scope 1) emissions from fuel combustion and IPPUNational Environment Agency (NEA) 2026-11-12
Transport fuels excluded from carbon taxNo additional carbon tax on petrol, diesel, CNG (excise duties apply)Ministry of Finance (MOF) 2026-11-12
Number of taxable facilitiesAbout 50 facilitiesNational Climate Change Secretariat (NCCS) 2026-11-12
Share of national GHG emissions covered by carbon taxAround 70%National Climate Change Secretariat (NCCS) 2026-11-12
Share covered by carbon tax plus transport fuel exciseAbout 80%National Climate Change Secretariat (NCCS) 2026-11-12
Carbon tax coverage at introductionAround 80% of national emissionsNational Climate Change Secretariat (NCCS) 2026-11-12
2022 coverage after HFC rebasingAround 71% (from 76%)National Climate Change Secretariat (NCCS) 2026-11-12
2022 coverage before HFC rebasing76%National Climate Change Secretariat (NCCS) 2026-11-12
Registration deadline30 June of the year after the trigger yearNational Environment Agency (NEA) 2026-11-12
Emissions Report deadline30 June of the year following the reporting periodNational Environment Agency (NEA) 2026-11-12
Monitoring Plan deadline (taxable facilities)31 December of the year after the trigger yearNational Environment Agency (NEA) 2026-11-12
Tax payment deadline30 September of the year after the emissions year (or 30 days after notice, if later)Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Payment instrumentSurrender of fixed-price carbon credits (FPCCs) bought from the GovernmentSingapore Statutes Online, Attorney-General's Chambers 2026-11-12
Notice of ICC Use submission window1 July of emissions year to 30 June of following yearNational Environment Agency (NEA) 2026-11-12
Transition framework (allowances) for EITE firmsFrom 2024; allowances based on efficiency benchmarks and decarbonisation plansNational Climate Change Secretariat (NCCS) 2026-11-12
Transition framework excludes new investmentsNew investments do not qualifyNational Climate Change Secretariat (NCCS) 2026-11-12
Expected carbon tax revenue, first five years (2018 estimate)Nearly S$1 billion (2019-2023)Ministry of Finance (MOF) 2026-11-12
Net revenue from rate increaseNo additional net revenue expected this decadeNational Climate Change Secretariat (NCCS) 2026-11-12
Electricity tariff sensitivity~1% tariff rise per S$5/tCO2e increaseNational Climate Change Secretariat (NCCS) 2026-11-12
Household impact of S$45 rateAbout S$3/month for average 4-room HDB flatNational Climate Change Secretariat (NCCS) 2026-11-12
Household impact of S$25 rate (Budget 2022)About S$4/month for average 4-room HDB householdMinistry of Finance (MOF) 2026-11-12
Regular U-Save rebate ceilingUp to S$380/yearNational Climate Change Secretariat (NCCS) 2026-11-12
Enhanced U-Save, FY2024Up to S$950 (2.5x regular)National Climate Change Secretariat (NCCS) 2026-11-12
ICC offset limitUp to 5% of taxable emissions, from 1 January 2024National Environment Agency (NEA) 2026-11-12
ICC environmental integrity principlesArticle 6 compliance plus seven principlesNational Climate Change Secretariat (NCCS) 2026-11-12
ICC vintage windowReductions/removals between 1 Jan 2021 and 31 Dec 2030Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
ICCs only from IA host countriesCredits from non-IA countries not allowedSingapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreements signed (NEA page, updated 19 Aug 2026)11National Environment Agency (NEA) 2026-11-12
Implementation Agreements signed (CMC FAQ, updated 2 Nov 2026)12: PNG, Ghana, Bhutan, Peru, Chile, Rwanda, Paraguay, Thailand, Mongolia, Vietnam, Philippines, Lao PDRSingapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
IAs entered into force9 of 12 (all except Paraguay, PNG, Philippines)Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Countries listed in MOU table17 countries (Colombia, Costa Rica, Dominican Republic, Brazil, Bhutan, Cambodia, Lao PDR, Philippines, Malaysia, Sri Lanka, Kenya, Morocco, Senegal, Zambia, Malawi, Ethiopia, Fiji)Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Share of proceeds for adaptation5%Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
OMGE cancellation at issuance2% of authorised creditsSingapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Countries with application calls launchedBhutan, Ghana, Peru, Rwanda, ThailandNational Environment Agency (NEA) 2026-11-12
Mongolia application process opened8 October 2026Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Host countries with published Eligibility List6: Ghana, Bhutan, Peru, Rwanda, Thailand, MongoliaSingapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Projects on IA Project Register0 registered (as of 2 Nov 2026)Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Project lead time to generate creditsUp to four yearsNational Environment Agency (NEA) 2026-11-12
Carbon crediting programme registries for ICC retirement5: ACR, ART, Global Carbon Council, Gold Standard, VerraNational Environment Agency (NEA) 2026-11-12
Roll-over of unused 2024 ICC limitUp to 5% of 2024 taxable emissions rolled to EY2025Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
2024 roll-over quota expiryExpires; cannot be carried beyond 2025National Environment Agency (NEA) 2026-11-12
Roll-over of unused 2025 ICC limit to 2026Allowed, adjusted by credit conversion factorNational Environment Agency (NEA) 2026-11-12
Credit conversion factor 2025 to 2026(A - B) x (25/45), rounded downNational Environment Agency (NEA) 2026-11-12
NEA worked example: rolled-over quota4,000 x (25/45) = 2,222 creditsNational Environment Agency (NEA) 2026-11-12
Credit conversion factor as decimal25/45 = 0.5556National Environment Agency (NEA) 2026-11-12
Rate multiple, 2024 vs 2019-235x (S$25 / S$5)Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Rate increase, 2026 vs 2024-25+80% (S$45 / S$25 - 1)Singapore Statutes Online, Attorney-General's Chambers 2026-11-12
Budget 2018 confirms carbon tax designTax on all facilities emitting 25,000 tCO2e or more, from 2019Ministry of Finance (MOF) 2026-11-12
Implementation Agreement signed: Papua New Guinea2023-12-08NCCS 2026-11-12
Implementation Agreement signed: Ghana2024-05-27Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Bhutan2025-02-28Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Peru2025-04-01Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Chile2025-04-07Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Rwanda2025-05-06Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Paraguay2025-05-23Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Thailand2025-08-19Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Vietnam2025-09-16Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Mongolia2025-10-06Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Philippines2026-06-08Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Implementation Agreement signed: Lao PDR2026-09-04Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
First IA call for projects (Ghana)30 September 2024Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Cumulative IAs signed by end-20231Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Cumulative IAs signed by end-20242Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Cumulative IAs signed by end-202510Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Cumulative IAs signed by end-202612Singapore's Carbon Markets Cooperation (Government of Singapore) 2026-11-12
Questions

Frequently asked questions

How much is Singapore's carbon tax in 2026?

S$45 per tonne of CO2e for emissions in 2026 and 2027. It was S$25 in 2024–2025 and S$5 in 2019–2023. The Government aims for S$50–80 by 2030, and the path after 2027 is under review.

Who has to pay the carbon tax?

Facilities that emit 25,000 tCO2e or more of direct emissions a year — about 50 facilities in manufacturing, energy supply, and water and waste. Facilities between 2,000 and 25,000 tCO2e only measure and report.

How much of Singapore's emissions does the tax cover?

Around 70% of national greenhouse gas emissions (about 80% if the excise duties on transport fuels are counted).

Can companies use carbon credits to pay the tax?

Yes, up to 5% of taxable emissions, from 1 January 2024, using eligible international carbon credits that meet Article 6 rules and seven integrity principles. The rest is paid with fixed-price credits bought from the Government.

Are international credits actually available yet?

Not yet at scale. Twelve implementation agreements are signed and six host countries have published eligibility lists, but as of 2 November 2026 zero projects are registered, and projects can take up to four years to issue credits.

What happens to unused 2025 credit quota?

It can roll into 2026, multiplied by 25/45 because the tax rose from S$25 to S$45. NEA's example: 4,000 unused becomes 2,222. Quota carried from 2024 into 2025 has expired.

When is the tax paid?

By 30 September of the year after the emissions year, so the 2026 bill is due by 30 September 2027.

Is the carbon tax passed on to households?

Indirectly. The Government estimates about 1% on electricity tariffs per S$5 of tax, or around S$3 a month for an average 4-room HDB flat at S$45.

Gaps

Not listed yet

Items we could not confirm in an official text are left out on purpose.

  • Carbon tax revenue actually collected: published only combined with other duties.
  • The share of free allowances under the transition framework: stated only as 'a portion'.
  • Standalone carbon tax revenue (actual collections) — MOF publishes only the combined 'Customs, Excise and Carbon Taxes' line (FY2025 analysis); no separate carbon tax figure found on official pages. Only the 2018 estimate (nearly S$1bn over 5 years) is confirmed.
  • Transition framework allowance share (% of emissions) — NCCS/NEA/MOF pages say allowances cover 'only a portion' of emissions; no percentage published on pages read.
  • NEA Tables 2-4 (reckonable vs non-reckonable, gases, obligations by threshold) — Published as images on the NEA carbon tax page; text not machine-readable, so not transcribed.
  • Number of methodologies on each Eligibility List — Country-specific Eligibility List documents were not opened; only the list of 6 host countries is confirmed.
  • ICC prescribed limit in Regulations text (5%) — Carbon Pricing (Carbon Tax and Carbon Credits Registry) Regulations on SSO not opened; 5% confirmed from NEA/NCCS/MOF instead. Plain curl to SSO returned HTTP 403; Act read via in-app browser.
  • Section 20B allowance period — Text read was truncated before the period end; not recorded.
  • Original NCCS URL /mitigation-efforts/carbon-tax/ — Returns 404; current page is /mitigation-efforts/carbontax/.
  • Discrepancy note: IA count — NEA page (updated 19 Aug 2026) says 11 IAs; CMC FAQ (2 Nov 2026) says 12 after Lao PDR signing on 4 Sep 2026. Both recorded.
Record

Sources