The Carbon Pricing (Amendment) Act 2022 (“Act“), which came into force on 7 March 2023 and amends the Carbon Pricing Act 2018, seeks to advance Singapore’s transition towards net-zero.
The Act aims to encourage emitters of greenhouse gases (“GHG“) to proactively reduce emissions by:
(a) progressively increasing carbon tax rates;
(b) introducing an industry transition framework to provide transitory allowances to companies in Emissions-Intensive Trade-Exposed (“EITE“) sectors;
(c) setting up an International Carbon Credits (“ICC“) framework; and
(d) revising the list of greenhouse gases and their Global Warming Potential Values.
Source Baker & McKenzie
