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Calibrating the costs and benefits of Singapore's carbon tax
Higher carbon taxes will aid the drive towards a greener economy, but care must be taken in pacing the increases and setting the rates in view of the trade-offs and Singapore's constraints.
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Euston Quah and Tan Tsiat Siong For The Straits Times
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In last week's Budget speech, it was announced that Singapore's carbon tax will be raised from the current $5 a tonne of emissions to between $50 and $80 by 2030. The large hike, which might have come as a surprise to many, is clearly indicative of Singapore's resolve in transitioning into a green economy, even though we contribute a meagre 0.1 per cent to global greenhouse gas emissions.
Leading the region in climate action by raising our carbon tax is a bold move, partly motivated by our vulnerability to climate change as an island state, and our intention to position ourselves as a carbon services hub in the future, which could attract investments and create job opportunities.
