Carbon Tax: The 2026 Rate and Where It's Headed
Share
Singapore's carbon tax applies to large industrial facilities and has been rising steadily since it launched in 2019.
Key dates and rates
- 2019 to 2023: S$5 per tonne of CO2 equivalent.
- 2024 to 2025: S$25 per tonne.
- 2026 to 2027: S$45 per tonne.
- By 2030: Targeted at S$50 to S$80 per tonne.
Who it affects
- SMEs: Directly, only if you operate a facility emitting at least 25,000 tCO2e a year (roughly 50 facilities in Singapore today). Most small businesses are not directly taxed but may see costs passed through via electricity or supply chain pricing.
- Residents: No direct tax, but electricity retailers may factor rising carbon costs into pricing over time.
- F&B operators: Not directly taxed, but energy and supply chain costs may shift gradually as the rate climbs toward 2030.
What you need to do
- Large emitters: Track your facility's emissions against the 25,000 tCO2e taxable threshold and consider international carbon credits, which can offset up to 5% of taxable emissions.
- Everyone else: No direct action, but useful context for understanding future cost pass-throughs.
Source: nccs.gov.sg. Verified 7 Jul 2026.