Policy & Regulation

Singapore carbon tax to land softly on gas

Singapore has announced it will introduce a carbon tax, but it is unlikely to have much impact on the country’s gas demand Singapore has announced it will introduce a carbon tax, but it is unlikely to have much impact on the country’s gas demand.
By Andrew Walker 1 March 2018 0 29800
An LNG tanker at Singapore's terminal. An LNG tanker docked at Singapore. (Shell)

Singapore’s new carbon tax aims to reduce emissions from the country’s heaviest polluters, which include its predominantly gas-fired power generation fleet. However, gas demand is unlikely to be significantly affected because generators will be able to pass on the additional cost to end-users, analysts have told Interfax Natural Gas Daily.

Singapore’s Finance Minister Heng Swee Keat said during his budget announcement last week that a carbon tax would be levied at S$5 (US$3.78) per ton of carbon dioxide equivalent (tCO2e).

The tax will be levied on...