More ambitious net-zero target for Singapore could mean tougher climate policies

SINGAPORE businesses must prepare for more aggressive climate policies if the government tightens its deadline to achieve net-zero greenhouse gas emissions, market observers told The Business Times.

Singapore launched a public consultation on Monday (Sep 5) on whether to set a hard 2050 net-zero target instead of the current “by or around mid-century” goal.

Getting there could require an expanded carbon tax regime to cover more than just facilities emitting at least 25,000 tonnes of greenhouse gases annually, said Singapore Management University (SMU) assistant professor of economics Goh Jing Rong. A tiered carbon tax structure could be implemented so that lighter emitters are subjected to a lower tax rate than heavier emitters, he said.