Singapore carbon tax revenue projected to have tripled in 2024

Amount collected is lower than expected after big jump in the tax rate last year

- Shabana Begum

The revenue collected from Singapore's carbon tax in 2024 – the year the tax rate went up to five times from before – is projected to be about $642 million, The Straits Times has learnt.

This is up from the roughly $200 million in yearly revenue collected when the tax rate was $5 per tonne of emissions from 2019 to 2023.

In 2024, the tax rate rose to $25 per tonne of greenhouse gas emissions. Assuming emissions that year remained at levels similar to previous years, the total tax revenue should be about $1 billion.

One expert has suggested the lower-than-expected carbon tax revenue is likely due to allowances given to trade-exposed emitters to help them stay competitive.

There are roughly 50 facilities in Singapore liable for the carbon tax, mainly from the manufacturing, power, waste and water sectors. These emitters are responsible for about 70 per cent of total national emissions.

Singapore's total national emissions ranged between 53.87 million tonnes and 58.59 million tonnes annually from 2019 to 2022. The revenue from carbon tax collected has also been consistent.

In response to queries, a Singapore government spokesperson told ST the $642 million was estimated based on several factors.

The higher revenue reflects the higher carbon tax rate, but also takes into account several other factors, said the spokesperson.

"(This includes) the projected emissions by taxable facilities, the use of international carbon credits to offset carbon tax liabilities, and transitory allowances for eligible companies in the emissions-intensive, trade-exposed sectors," the spokesperson added.

The $642 million estimate was reflected in the Budget 2025 revenue and expenditure estimates document. The tax is expected to be collected by end-September.