KATOWICE, Poland – Pricing carbon emissions first, and then adjusting it later, is part of Singapore’s strategy to meeting its climate pledges without excessively burdening the industrial sector, Minister for the Environment and Water Resources Masagos Zulkifli said on Tuesday (Dec 11).
“We impose a low tax first, so companies will get used to the fact that there is going to be a tax, and this gives businesses more certainty,” said Mr Masagos during a panel discussion on the role of carbon pricing in reducing emissions at COP24, the ongoing United Nations (UN) climate change talks in Katowice, Poland.
But the Singapore Government will review the carbon tax after five years, with plans to double or even triple it from the initial S$5 per tonne of emissions, he said, adding: “If businesses don’t manage to improve their efficiency, they will pay more tax. That’s the signal that we gave to industries that, whether they like it or not, we will impose this legislation.”
Industry is the single-largest source of emissions in Singapore, accounting for more than half of all greenhouse gas emissions.