Singapore carbon tax 2026 - rates, who pays and reporting deadlines

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Last reviewed: 11 November 2026. Source for every rate and threshold: National Environment Agency, carbon tax (updated 19 August 2026) and NEA's measurement and reporting requirements (updated 28 October 2026). General information, not tax advice.

The short answer

Singapore's carbon tax is S$45 per tonne of CO2e for 2026 and 2027, up from S$25 in 2024 and 2025. The government plans to reach S$50 to S$80 per tonne by 2030. It applies to industrial facilities emitting at least 25,000 tCO2e of direct greenhouse gases a year.

It's a facility-level tax, not a company-level one. A group with several sites tests each facility against the thresholds separately.

Rates

Emissions year	Rate per tCO2e
2019 to 2023	S$5
2024 and 2025	S$25
2026 and 2027	S$45
By 2030	S$50 to S$80 (planned)

Who is covered

Reportable facilities: direct emissions of 2,000 tCO2e or more a year. They must register by 30 June of the year after the year they crossed the threshold, and report emissions each year.
Taxable facilities: direct emissions of 25,000 tCO2e or more a year. They pay the tax, need third-party verification of their emissions report, and submit a monitoring plan by 31 December of the year after they became taxable.

Both thresholds are based on direct (Scope 1) emissions at the facility. Purchased electricity doesn't count towards them.

How you pay

Tax is paid by surrendering carbon credits, not by bank transfer:

Fixed-price carbon credits bought from NEA at the prevailing tax rate.
Eligible international carbon credits for up to 5% of taxable emissions, allowed since 1 January 2024.

Payment is due by 30 September of the following year or 30 days after the Notice of Assessment, whichever is later. See NEA's guidelines for your facility.

Which international credits qualify

Not any offset will do. Eligible credits must meet criteria aligned with Article 6 of the Paris Agreement:

The host country must authorise the credit and apply a corresponding adjustment, so the reduction isn't counted twice.
The reduction or removal must happen between 2021 and 2030.
The credit must come from a host country, crediting programme and methodology on NEA's Eligibility List, under an implementation agreement with Singapore.

The list is reviewed regularly, so check it before you buy (MSE and NEA eligibility criteria).

Transition support for trade-exposed sectors

Companies in emissions-intensive, trade-exposed (EITE) sectors can get transitory allowances under the industry transition framework. Allowances are set against efficiency standards and decarbonisation plans, and they don't cover the whole tax bill. Non-EITE companies can look at broader schemes, such as energy efficiency and resource efficiency grants.

Worked example (hypothetical)

A taxable facility emits 100,000 tCO2e of direct emissions in 2026.

Full liability at S$45: 100,000 × S$45 = S$4.5m
Using international credits for the full 5%: 5,000 tonnes covered by eligible credits, 95,000 tonnes by fixed-price credits from NEA
Fixed-price credits: 95,000 × S$45 = S$4.275m, plus the cost of the 5,000 international credits

The 5% option only saves money if eligible credits cost less than S$45 a tonne once sourcing and verification are included. Every tonne you cut at source saves S$45 now and more after 2027.

Key deadlines

Deadline	Who	What
30 June	Reportable and taxable facilities	Emissions report for the previous year; registration for newly reportable facilities
30 September (or 30 days after assessment)	Taxable facilities	Tax paid by surrendering credits
31 December	Newly taxable facilities	Monitoring plan

Checklist

Estimate each facility's direct (Scope 1) emissions for the year.
If you're above 2,000 tCO2e, register and plan your annual report.
If you're above 25,000 tCO2e, line up verification and budget at S$45 a tonne for 2026 and 2027.
Decide whether eligible international credits make sense for up to 5% of taxable emissions.
If you're in an EITE sector, check whether you qualify for transitory allowances.
Keep the activity data (fuel, process) that your verifier will test.

How Breathe ESG helps

Breathe ESG calculates Scope 1, 2 and 3 emissions with an audit trail back to source data, so the numbers in your NEA report and your SGX climate disclosures come from one dataset.

People: ESG consulting and fractional CSOs for verification readiness.
Training: Breathe Academy.
Community: Breathe Zero, a network of ESG professionals.

Book a 20-minute walkthrough.

FAQs

What is Singapore's carbon tax rate in 2026?

S$45 per tonne of CO2e for 2026 and 2027.

Who pays Singapore's carbon tax?

Facilities with direct emissions of 25,000 tCO2e or more a year. Facilities between 2,000 and 25,000 tCO2e report but don't pay.

Does the carbon tax cover electricity use?

Not directly. Power generators pay on their own emissions, and that cost feeds into electricity prices.

Can any carbon credit be used?

No. Only eligible international credits on NEA's list, up to 5% of taxable emissions.

Does Singapore's carbon tax count for EU CBAM?

A carbon price paid in the country of origin can reduce CBAM costs, subject to EU rules on evidence and deductions. Keep proof of payment per installation.