SINGAPORE - Large emitters of greenhouse gases here will get allowances to adjust to higher carbon tax rates from 2024.
She was speaking at the start of the debate on the Carbon Pricing Bill, which will see more than 10 MPs speak. One of the amendments to the 2018 Carbon Pricing Act is to set out the framework on the allowances as companies face carbon tax hikes. “We have decided to raise the carbon tax level progressively in phases and with advance notice, to give our businesses time to plan and carry out their low-carbon transition,” said Ms Fu.
In the draft Bill, the companies eligible for the allowances should have sufficient economic or strategic importance to the growth or well-being of Singapore’s economy. To allow companies to shrink their carbon tax bills, they are allowed to use carbon credits to offset up to 5 per cent of their taxable emissions. The cap was kept at 5 per cent to prioritise emission reductions.More On This TopicInternational carbon credits are tradable certificates that represent the reduction or removal of emissions that will be achieved through projects outside Singapore. Such projects include reforestation or forest conservation efforts overseas.