Singapore mulls wider carbon market in crafting carbon tax law

SINGAPORE, in preparing for the possible linkage of its carbon tax framework to external carbon markets in future, will use a credits-based mechanism for its carbon tax.

Facilities that have to pay a carbon tax will therefore do so by buying and surrendering the number of carbon credits corresponding to their greenhouse gas emissions, according to a draft carbon pricing bill.

The carbon credits will be issued by the National Environment Agency (NEA) at a fixed price, which will be determined closer to the implementation date of Jan 1, 2019. The government has also not yet indi…