Singapore, a global financial hub and one of the world’s most dynamic economies, is taking robust steps to address climate change and environmental sustainability. With its strategic approach towards reducing carbon emissions, Singapore is not only complying with global standards but also setting a benchmark for other nations. The introduction of carbon regulations and the implementation of the Singapore Green Plan 2030 signify the country’s unwavering commitment to achieving net-zero emissions and fostering a sustainable future.
Singapore is the first country in Southeast Asia to implement a carbon price under the Carbon Pricing Act. The tax, which started at SGD 5 per tonne of GHG emissions in 2019, aimed to provide a transitional period for emitters. To support Singapore’s net zero target, the tax was raised to SGD 25 per tonne in 2024 and will increase to SGD 45 per tonne in 2026 and 2027, with an ultimate goal of reaching SGD 50-80 per tonne by 2030. This progressive increase reflects the nation’s commitment to curbing emissions, incentivizing cleaner practices, and aligning with national climate goals.
Source: The National Environment Agency
ingapore’s carbon tax, implemented under the Carbon Pricing Act, has significant economic, environmental, and social implications. Economically, the tax increases operational costs for high-emission industries but also incentivizes innovation and investment in cleaner technologies. Over time, companies that adapt and innovate can gain a competitive edge by becoming leaders in sustainability. Environmentally, the carbon tax aims to reduce greenhouse gas emissions by imposing a financial cost on carbon emissions, encouraging businesses to cut their emissions and invest in renewable energy sources. This strategic move can create new job opportunities in green sectors, improve air quality, and serve as a model for other countries in the region, enhancing Singapore’s global reputation and contributing to a healthier living environment for its citizens.
To support emissions-intensive trade-exposed (EITE) companies, such as those in the petrochemical and energy production sectors, the government has introduced a transition framework. This framework provides transitory allowances based on efficiency standards and decarbonisation goals, allowing these companies additional time to reduce emissions and invest in cleaner technologies while managing the near-term impact on business competitiveness.
The Singapore Green Plan 2030 is a comprehensive nationwide initiative aimed at steering the country towards sustainable development. Launched in 2021, the Green Plan encompasses a wide range of strategies and targets across various sectors, including energy, transport, waste management, and nature conservation. The primary goals of the Singapore Green Plan 2030 include achieving peak emissions around 2025, followed by significant reductions. By 2030, the plan aims to cut emissions to approximately 60 million tonnes of CO2 equivalent. The ultimate objective is to reach net-zero emissions by 2050, aligning with global efforts to limit the temperature rise to 1.5 degrees Celsius. These targets reflect Singapore’s commitment to addressing climate change and advancing sustainable development on both a national and global scale.
An essential aspect of carbon management is the establishment of a GHG inventory, along with ongoing monitoring and tracking of emissions. This inventory is crucial for setting reduction targets and implementing solutions to achieve these goals. Reporting on Scope 1, 2, and 3 emissions, combined with the development of a decarbonization roadmap, provides a structured pathway for organizations to follow in their journey toward lower emissions. With carbon tax rates set to rise significantly in the coming years, maintaining accurate records and continuously tracking progress becomes even more vital. Effective carbon management ensures that businesses can stay focused on their emissions reduction targets, thereby not only achieving environmental benefits and enhanced operational efficiency but also mitigating the financial impacts of the carbon tax.
At Estes Consultancy, we are dedicated to supporting Singapore’s sustainability journey. As one of the leading sustainability consulting firms in Singapore, we specialize in climate reporting and carbon management, offering comprehensive services that enable organizations to navigate sustainability and regulatory compliance effectively.
We conduct baselining and gap analysis to understand emissions profiles and recommend strategies for reducing environmental impact. Our GHG inventory, monitoring, and tracking services help set up comprehensive emission monitoring systems, crucial for meeting regulatory requirements and achieving sustainability goals. We also develop reduction solutions and targets and create decarbonization roadmaps tailored to your organization’s needs.
Besides, Estes Consultancy provides ESG full report and integrated reporting services to effectively communicate your sustainability efforts. Our ESG materiality assessment identifies priority issues for strategic planning and sustainability reporting. We also prepare detailed content indexes aligned with standardized frameworks, enhancing transparency and compliance.
Partner with Estes Consultancy, one of the top ESG consulting firms in Singapore, to enhance your carbon management strategy and lead your organization towards a greener, more sustainable future. Contact us today to discover how we can support your environmental initiatives and regulatory compliance efforts.
