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Singapore to impose carbon tax from 2019 to cut on greenhouse gas emissions

The tax would be levied on all facilities producing 25,000 tonnes or more of greenhouse gas emissions a year

AFP | PTI  |  Singapore 

A view of Singapore skyline | Photo: Reuters

said on Monday it would impose a from next year to cut its emissions and make companies more competitive as global agreements on take effect.

said the tax would be levied on all facilities producing 25,000 tonnes or more of emissions a year.

The tax, to be applied to all sectors, will be Sg$5.0 ($3.8) per tonne of emissions from 2019 to 2023, after which the levy will be reviewed and possibly raised to between Sg$10 and Sg$15 per tonne by 2030.

"produces less per dollar of GDP than most countries," he said, as he unveiled the measure as part of the city-states 2018 budget.

"We intend to further reduce our emissions intensity to make a bigger effort to combat "

Major economies have been scrambling to cut greenhouse gas emissions amid warnings from scientists about the potentially devastating impacts of

The most notable step has been the 197-nation Paris Agreement, inked in 2015, which calls for limiting global warming to "well under" 2 degrees Celsius, and "pursuing efforts" to cap warming at 1.5 degrees C.

The levy will affect about 30-40 companies, mainly from the petroleum refining, chemicals and semiconductor sectors, the Straits Times reported.

ranks 26th out of 142 countries in terms of emissions per capita based on the latest Energy Agency data largely due to its small size and dense population, according to the government.

Heng said the new would encourage businesses to take measures to reduce emissions, making them more competitive as tighter limits are imposed by more countries when deals come into force.

The government would provide support to companies to help them become energy-efficient, he added.

Singapore expects to collect revenues of nearly Sg$1.0 billion in the first five years, but the government is willing to spend more than that to help companies, he said.

First Published: Mon, February 19 2018. 16:47 IST