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 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...