Press releases
Media Release on the Roll Over of Unutilised International Carbon Credit (ICC) Offset Quota For Emissions Year 2025
11 May 2026
Carbon Tax-Liable Companies Can Carry Forward Unutilised Carbon Credits Offset Quota For Emissions Year 2025.
Companies liable to pay carbon tax will be allowed to roll over any unutilised International Carbon Credit (ICC) offset quota from emissions year 2025 to emissions year 2026.
Under Singapore’s ICC Framework, companies can use eligible, high-quality ICCs to offset up to 5% of their taxable emissions each year. This provides carbon tax-liable companies with an alternative way to meet part of their carbon tax obligations, while supporting the development of high-integrity international carbon markets.
To date, the Government has signed 11 Implementation Agreements and launched application calls for carbon credit projects in Bhutan, Ghana, Peru, Rwanda, and Thailand. The calls were launched from late 2025 to early 2026. As carbon credit projects typically take a few years to generate credits, supply will take time to build up. Recent global developments — including a stronger industry focus on carbon credit integrity and evolving international carbon market rules — have also delayed the overall supply of eligible credits.
To address the lack of eligible ICCs available today, the Government will allow companies to carry forward their unutilised 5% offset quota from emissions year 2025 to emissions year 2026. This one-year rollover is intended as a transitional measure to give more time for international carbon markets under Article 6 of the Paris Agreement to mature, and for more ICCs to become available.
As the carbon tax rate has been raised to $45 per tonne in emissions year 2026, a credit conversion formula will be applied to adjust the emissions year 2025 offset amount to be carried over to emissions year 2026. Companies should note that ICC offset quota carried over from emissions year 2024 to emissions year 2025 will expire and cannot be carried forward further. Please refer to the Annex for more details on the emissions year 2025 roll over.
The Government remains committed to supporting the development of a high-quality international carbon market and will continue working with its Implementation Agreement partners to expand the pipeline of eligible credits.
Annex A: Roll Over of Unutilised ICC Offset Quota for Emissions Year 2025
For any registered person who surrenders a number of eligible ICCs equal to the prescribed limit under section 33B(1) of the CPA in payment of the carbon tax charged on the taxable emissions for emissions year 2026 of a taxable facility of the registered person, to surrender a further number of eligible ICCs in payment of the carbon tax for emissions year 2026 calculated as follows:
(A – B) x $25/$45
rounded down to the nearest whole number, where —
A is the prescribed limit under section 33B(1) of the CPA for the number of eligible ICCs that may be surrendered by the registered person in payment of the carbon tax charged on the taxable emissions in emissions year 2025 of the taxable facility;
B is the number of eligible ICCs that the registered person surrenders in payment of the carbon tax in A; and
The fraction $25/$45 serves as the Credit Conversion Factor to account for the tax rate increase from emissions year 2025 to emissions year 2026 (Noting that $25 and $45 refer to the carbon tax rates for emissions years 2025 and 2026 respectively).
For illustration:
1. Taxable facility emits 100,000 tonnes of CO2e annually. It is allowed to use up to 5,000 ICCs (5% of taxable emissions) to offset their carbon tax liability each year.
2. If the taxable facility only uses 1,000 ICCs to offset their tax liability for emissions year 2025, it will pay the carbon tax for the remaining 99,000 tonnes of taxable emissions.
3. The unutilised ICC offset quota from emissions year 2025 can be rolled over to emissions year 2025 after applying the Credit Conversion Factor, to be used together with their ICC offset quota for 2026 emissions. By applying the Credit Conversion Factor, the roll over ICC offset quota is 4,000 x (25/45) = 2,222 (rounded down to the nearest whole number).
Emissions Year (EY) | EY2025 | EY2026 |
Emissions (tonnes) | 100,000 | 100,000 |
Maximum ICC offsets allowed | 5,000* | 5,000 + 2,222 = 7,222 Note: 2,222 ICCs rolled over from EY2025 after applying the Credit Conversion Factor (i.e. (5,000-1,000) x $25/$45) |
ICC offsets utilised | 1,000 | NA |
*excluding roll over of EY2024 ICC offsets for purpose of this illustration