What to Know About Singapore’s Carbon  Price?

Singapore as a Sustainable Country 

Singapore is one of the most sustainable countries in Asia and the World. The right decisions for many minds brought Singapore success in maintaining a balance between development and environmental changes. With the strategies like Singapore Green Plan 2030, also known as 80–80–80, and Sustainable Singapore Blueprint, Singapore is on its way to increasing its world sustainability rankings. 

By now, the country has been managing its electricity, mainly via natural gas, accounting for over 95%. Years ago, this change happened as a switch from fuel oil to natural gas to become a more sustainable country. But being limited to, land as a small nation and the complex landscape conditions, there are challenges to Singapore’s sustainability roadmap. 

What is the Carbon  Price? 

The carbon price is the cost of the greenhouse gases emitted into the atmosphere. Many economists and professionals agree that carbon prices are one of the best ways to reduce emissions worldwide, especially from big industries and countries.  

According to the London School of Economics and Political Science, there are two main ways to establish a carbon price. The first one is the carbon tax governments can levy on businesses about fossil fuels based on their carbon contents. This possibly increases fossil fuel and related product prices, making a positive direction toward more renewable energy and sustainable products. The second one is a quota system called cap and trade. It sets a quota for emissions of a country or a region in advance. 

What to Know About Singapore’s Approach to pricing Carbon  Price?  

Singapore’s Carbon Pricing Act (CPA) began operation on the 1st of January 2019. Under this act, industrial facilities that emit greenhouse gasses (GHG) emissions above 2000 tones of CO2 must submit an emissions report annually. If the emissions exceed 25000 tons of CO2, the facility or the business must register as a taxable facility. Facilities had to consider emissions from fuel combustions, industrial processes, and product uses. 

The use of international carbon credits and the transition framework are still in the works, according to the National Environmental Agency of Singapore, where more details will be shared in 2023. Although, the revised carbon tax is expected to implement in 2024. 

Carbon Pricing Act includes direct emissions from a facility, also known as Scope 1 emissions, except for CO2 emissions from biofuels and combustion of lubricants or paraffin wax, fire protection equipment, agriculture, forestry, land use, transport of people or goods and more. To learn more about the carbon taxes in Singapore, you can visit the government website

How Can Faradai Sustain Help You?  

Faradai Sustain helps businesses with all things sustainability, including accurate and up-to-date emission calculators, data management for Scope 1, 2, and 3 emissions covering 2000+ activity data such as waste, water, transport, and supply chain, target setting in line with Science Based Targets Initiative (SBTi), progress tracking and more. 

To learn more about how Faradai Sustain handles carbon offsetting and could support your business in sustainability transition, start free now!

References you can look up for more details: 


Ayca Guler – Marketing Assistant at Faradai