Grace Fu on Carbon Pricing (Amendment) Bill

The Carbon Pricing (Amendment) Bill will ensure that Singapore's carbon pricing regime remains "fit for future". It will also strengthen the impetus for businesses and individuals to reduce their carbon footprint, as well as support the growth of the green economy. Sustainability and the Environment Minister Grace Fu highlighted these key thrusts of the Bill, which will put in place the key proposed changes announced at Budget 2022. These include the revised carbon tax levels of S$25 per tonne for greenhouse gas emissions in 2024 and S$45 per tonne in 2026 and beyond. Speaking in Parliament on Tuesday (Nov 8), Ms Fu said Singapore will raise the carbon tax level progressively in phases, with advance notice to give businesses time to plan and carry out their low-carbon transition. The progressive increases will set Singapore on a trajectory to reach between S$50 and S$80 per tonne by 2030. Ms Fu said Singapore needs an effective carbon price to activate carbon mitigation solutions to help achieve its net-zero ambition. Setting the price at the right levels requires careful calibration, she said. Too low a carbon price will not provide sufficient incentive to make the necessary changes, while too high a price will erode competitiveness and destabilise the corporate sector. She said the proposed carbon price was set after carefully balancing the environmental, economic and social needs of Singapore. The Government considered the availability of cost-effective green technologies and products, the pace of change and support needed to cushion the impact. She stressed that the Bill is informed by a principled and balanced approach to carbon pricing and reflects Singapore's "unwavering commitment to decisive climate action".