Having a clean
and simple carbon tax will help preserve a fair, uniform and transparent price
signal on all units of emissions, to incentivise emissions reduction where it
presents the lowest cost.
A system with
benchmark-based exemptions, in which exemptions are provided to many sectors
resulting in different facilities paying different prices, would erode the
price signal of the carbon tax and make it less transparent.
such benchmarks can be a complicated process, and implementing them could
increase administrative and compliance costs.
Singapore is not alone in pricing carbon. About 67 jurisdictions (42 national and 25 sub-national jurisdictions) have implemented, or have plans to implement, carbon pricing. These jurisdictions account for roughly half of global greenhouse gas emissions. A few of these jurisdictions such as Finland, Norway and Sweden have implemented carbon pricing as early as the 1990s.
will set aside funds from 2019 to enhance support for companies, including SMEs
and power generation companies, to improve energy efficiency. The support for
companies will be done through schemes like the Productivity Grant (Energy
Efficiency) and the Energy Efficiency Fund. More support will go to projects
that achieve greater emissions abatement, beyond the basic enhancements. The
Ministry of Trade and Industry (MTI) and the Ministry of Environment and Water
Resources (MEWR) will share more details later.