Chart of the day: How does Singapore compare globally with carbon tax rates?
OCBC says the newly-announced carbon tax rates are 'for the better.'
According to the OCBC Treasury Research on carbon markets, the triple announcements from Budget 2022 were positive signs that Singapore is continuing to develop itself as a leading carbon trading hub in Asia.
One of the three announcements mentioned was the increase of domestic carbon tax from the current $5/tonne CO2e to $25/tonne in 2024 and 2025; $45/tonne in 2026 and 2027; and possibly to $50 to $80/tonne before 2030. When compared to the global average, Singapore's 2024 rate at $25/tonne will be the highest in Asia. But, in 2026, Singapore's $45 will be comfortably above the global median of $32.
The advancements in carbon policies during COP26 urged Singapore to act quickly to keep pace with the raft of climate pledges. Singapore's net-zero goal then was still loosely defined as "sometime in the second half of the century," compared to the absolute timelines put up by the likes of Malaysia (2050), Indonesia (2060), and Thailand (2065).