Office buildings in Singapore. (Photo: Pexels)
Companies in Singapore aiming to offset part of their carbon tax liability will soon be able to purchase carbon credits from projects in Ghana, following an agreement signed between the two countries on May 27.
Singapore carbon tax to hit $50 to $80 by 2030
Starting in 2024, Singapore’s carbon tax has increased to $25 per ton of CO2 emissions, up from $5 per ton previously. By 2030, the tax will eventually reach $50 to $80 per ton of CO2 emissions.
Companies can purchase carbon credits to offset up to 5% of their taxable emissions, provided the carbon projects meet Singapore’s eligibility criteria, such as achieving permanent emissions reductions.
A similar carbon credit agreement was signed between Singapore and Papua New Guinea on December 8, 2023, at the United Nations’ COP28 climate conference in Dubai.
