SINGAPORE released the eligibility criteria of its International Carbon Credit (ICC) framework on Wednesday (Oct 4), and market players said companies looking to offset their taxable emissions here must be prepared to pay a premium over voluntary credits.

That is because qualifying credits under the framework will be subject to new mechanisms that prevent an offset from being claimed twice between two countries. However, administrative overheads and compensation for the side giving up its claim will add to the cost of the credits, market players said.

The ICC framework will allow companies subject to Singapore’s carbon tax to offset up to 5 per cent of their taxable emissions beginning 2024, when Singapore’s carbon tax rate increases to S$25 per tonne of emissions from S$5 per tonne currently.