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Ministry of Sustainability and the Environment
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Parliament Q&A

Written Reply to Parliamentary Question on Carbon Tax

24 September 2025

Written Reply to Parliamentary Questions on Carbon Tax by Ms Grace Fu, Minister for Sustainability and the Environment

Questions:

To ask the Minister for Sustainability and the Environment (a) whether an update can be provided on the intended carbon tax rate beyond 2027; and (b) whether Singapore is on track to meet the target of $50 to $80 per tonne of carbon dioxide equivalent (tCO2e) by 2030.

To ask the Minister for Sustainability and the Environment (a) how will the increase in carbon tax planned for the next few years impact the emissions produced in Singapore; (b) what will be the impact on household utilities costs; and (c) in view of rising business costs, whether the Carbon Tax increase planned for 2028 will be pushed back or reduced.


Answer:

1 In 2022, we announced that the Government planned to progressively increase the carbon tax to $45 per tonne in 2026 and 2027, with a view to reaching $50 to $80 per tonne by 2030.

2 The Government reviews the trajectory of our carbon tax rate from time to time taking into account prevailing circumstances and will provide updates in due course.

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