Don Wee on Carbon Pricing (Amendment) Bill

Decarbonisation is a "generation-defining" business and Singapore companies are well-positioned to lead the way, said MP Don Wee. Speaking in Parliament on Tuesday (Nov 8), he said within a few years, Singapore's carbon tax will place it among the leaders in the region for decarbonisation efforts. He said while this will create opportunities, there are tradeoffs, such as rising business costs. He stressed the need to set the carbon tax rates carefully to help businesses adjust. He also sought clarifications on the Bill. He wanted to know how the Government sets the amount of allowances for large emitters. Mr Wee said Singapore must remember that the carbon tax will also impact other stakeholders, such as small- and medium-sized enterprises (SMEs). He wanted to know how the Government plans to work with the whole ecosystem of stakeholders. He asked if there will be an efficiency grant to spur SMEs in decarbonisation efforts or carbon dividends for lower-income households. Mr Wee also stressed the need to complement carbon taxes with more stringent environmental regulations. "The point is not to collect a lot of carbon tax," he said. Tight regulations and effective enforcement will deter environmentally harmful behaviour so that the carbon tax "need not do all the heavy lifting", he said.