Budget 2026: Carbon tax could be at ‘lower end’ of S$50 to S$80 range if climate momentum weakens
Singapore will have to do its part to reduce emissions as a global citizen, yet not put itself at a competitive disadvantage, notes Lawrence Wong
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[SINGAPORE] If global climate momentum continues to weaken, Singapore may need to position its carbon taxes towards the lower end of its projected S$50 to S$80 per tonne range by 2030, said Finance Minister Lawrence Wong.
This comes as the Republic already has the highest carbon tax rate in the whole of Asia, he noted in his Budget speech on Thursday (Feb 12).
The government just raised its carbon tax to S$45 per tonne for 2026 and 2027, and the plan is to reach S$50 to S$80 per tonne by 2030.
“While Singapore will continue to contribute responsibly to climate action, we recognise that our actions alone cannot determine global outcomes,” said Wong, who is also prime minister.
The city-state will have to do its part to reduce emissions as a global citizen, yet not put itself at a competitive disadvantage, he noted.
Carbon taxes send a “clear price signal” to encourage emissions reductions, and is already having an impact, he said.
Meanwhile, additional U-Save rebates for households will help cushion the impact of the carbon tax, he added. These are rebates that eligible households living in Housing & Development Board flats receive for their utilities and conservancy bills.
“Beyond 2027, we are assessing Singapore’s carbon tax trajectory carefully, in light of international developments.”
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