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Ministry of Sustainability and the Environment
Consultation Period:
08 Jul 2022 - 05 Aug 2022
Status:
Closed

Detailed Description

Public Consultation on the Draft Carbon Pricing (Amendment) Bill

1. The Ministry of Sustainability and the Environment (MSE) is carrying out a public consultation on the draft Carbon Pricing (Amendment) Bill. The consultation period will be from 8 July 2022 to 5 August 2022.

2. At Budget 2022, the Government announced that Singapore will raise our climate ambition to achieve net zero emissions by or around mid-century. To support the move towards our new net zero ambition, the Government announced that:

a. The carbon tax will be raised from the current $5/tCO2e to $25/tCO2e for 2024 and 2025, and $45/tCO2e for 2026 and 2027;

b. A transition framework will be introduced to give eligible companies in emissions-intensive trade-exposed (EITE)1 sectors more time to adjust to a low-carbon economy; and

c. Companies will have the option to use eligible international carbon credits in lieu of paying carbon tax for up to 5% of their taxable emissions from 2024 onwards.

3. The Carbon Pricing (Amendment) Bill will give effect to the revised post-2023 carbon tax regime. 

4. Interested parties are invited to provide feedback on the draft Carbon Pricing (Amendment) Bill. The draft Bill may be further revised following feedback received from consultations with the public and the industry. 

5. All submissions should be clearly and concisely written, and should provide a reasoned explanation for any feedback. Where feasible, please identify the specific provision of the draft Carbon Pricing (Amendment) Bill which you are commenting on. 

6. All submissions should reach MSE no later than 5pm on 5 August 2022. Late submissions will not be considered. Submissions are to be in softcopy only (in Microsoft Word or PDF format). Please send your submission to CPA@mse.gov.sg, with the subject “Public Consultation for Carbon Pricing (Amendment) Bill”.




1 Examples of EITE sectors include the energy and chemicals and electronics sectors. Non-EITE sectors include domestic-oriented sectors like power generation companies, waste management companies etc.