To reach net-zero emissions, Singapore will raise the price of carbon. As such, heavy polluters will pay $50-$80 per ton by 2030.
Singapore plans to invest revenue in green technology.
According to Finance Minister Lawrence Wong, “Over the coming decade, we expect to see a greening of traditional sectors of our economy like aviation, energy, and tourism. At the same time, emerging green sectors like green finance and carbon services will grow in prominence.”
Singapore has not released information about who this will impact. However, regulations currently apply to facilities that emit more than 25,000 metric tons of carbon each year.
Singapore will stagger price increases – starting at $25 in 2024 and reaching $45 in 2026.
Though a positive step, some experts believe this isn’t enough to combat climate change. They think prices need to be closer to $160 per metric ton.
Singapore’s commitment to net-zero emissions.
Singapore’s goal is to reach net-zero by or close to 2050.
- Last year, Singapore invested $55 million in 12 research projects. These projects involve carbon capture and hydrogen fuels.
- By 2030, Singapore will issue $35 billion worth of green bonds to fund public sector projects.
- Other projects include phasing out fossil fuel vehicles by 2040 (and setting up more charging stations).
- Singapore will also auction carbon credits related to Africa, Asia, and Latin America projects through its voluntary global carbon exchange, Climate Impact X.
“We aim to move Singapore into the forefront of green technologies, where new innovations are developed, trialed, scaled up, and eventually exported to the rest of the world. We will work hard to grab the first-mover advantage,” Wong said.
Isaac Neo, a spokesperson for advocacy group Singapore Climate Rally, said that “The climate measures announced today during the Budget are a step in the right direction.”
“High-income countries like Singapore should achieve these goals even earlier to give low-income countries more time to transition,” Neo added.
Singapore plans to release more details over the coming weeks.