Forum: Certainty is needed with carbon tax rates

I refer to the article, “Good climate policy needs to tread a fine line” (Nov 9).

I am bewildered by Workers’ Party MP Jamus Lim’s reply, when asked by Minister for Sustainability and the Environment Grace Fu how he proposed to “glide” to the appropriate level of carbon tax: that the tax level could be adjusted upwards or downwards depending on economic conditions.

Greenhouse gas emission is an ongoing threat, regardless of economic conditions. An effective tool like a carbon tax system is needed for a low-carbon transition. If tax rates vary according to economic conditions, we may not be setting the right priorities.

Furthermore, as Ms Fu said, without certainty in carbon tax rates, businesses would be unable to plan how much investment is needed for their low-carbon transition.

It will undoubtedly be painful for the affected sectors, but the proposed transitory allowances would soften the impact on companies.

The journey to transition to net-zero emissions could possibly take more than one generation. Setting firm carbon tax targets, without wavering due to economic conditions, is the right way to go.

Ong Kim Bock

Join ST's Telegram channel and get the latest breaking news delivered to you.