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Singapore's carbon tax revenue falls short despite rate hike. (Photo: unsplash)
The Singaporean government estimates that the 2024 carbon tax will generate SGD 640 million (about USD 497 million), more than 30% below the original projection. Experts attribute the shortfall primarily to additional exemptions offered by the government to ease the burden on businesses—highlighting the challenges of implementing carbon tax policies effectively.
Carbon tax revenue grew slower than the new rate
Singapore, a regional front-runner in climate policy, raised its carbon tax rate in 2024 from SGD 5 (about USD 3.88) per ton of CO₂ equivalent to SGD 25 (about USD 19.4), a fivefold increase. According to data obtained by The Straits Times, overall tax revenue only tripled despite little change in total emissions, reaching an estimated SGD 640 million. This falls short of the projected SGD 1 billion (about USD 776 million).
