Emissions trading in safe hands
Vertis, a MiFID II trading firm, supports companies in navigating through carbon compliance schemes, including different EU Emissions Trading Systems, CBAM and CORSIA, in a cost-effective way
Emissions trading in safe hands
Vertis, a MiFID II trading firm, supports companies in navigating through carbon compliance schemes, including different EU Emissions Trading Systems, CBAM and CORSIA, in a cost-effective way
Traders of Environmental Progress
STX Group is a global environmental commodities trader offering physical and financial solutions across compliance and voluntary systems for energy, fuels, gas and carbon markets.
Blog Articles
Singapore has long been a leader in sustainability. Among its policies to address climate change, the Singapore Carbon Tax stands out as a critical measure. This article explains what the Carbon Tax is, why it matters, and how it affects businesses operating in Singapore.
At STRIVE by STX, we help companies understand their impact and design actionable mitigation plans. Our team supports corporates in navigating policies like Singapore’s Carbon Tax while building strategies for long-term sustainability.
Talk to our experts today to explore solutions for your business.
The Carbon Tax is central to Singapore’s goal of becoming a net-zero nation by 2050. By attaching a price to carbon, the policy incentivizes businesses to cut emissions and adopt low-carbon technologies.
It also strengthens Singapore’s competitiveness as a green economy by signaling long-term commitment to sustainability and innovation in climate solutions.
Under the Paris Agreement, Singapore has committed to:
To support Singapore’s raised climate ambition and accelerate the transition to a low-carbon economy, the government introduced several changes to the Carbon Tax in November 2022:
The carbon tax will increase progressively:
This trajectory provides predictability for businesses while sending a clear price signal to reduce emissions.
From 2024, taxable facilities may offset up to 5% of their taxable emissions using high-quality international carbon credits (ICCs). ICCs represent verified reductions or removals of GHG emissions from projects in other countries. Their inclusion provides flexibility and cost-effectiveness for businesses, while ensuring alignment with global mitigation efforts.
From 2024, emissions-intensive trade-exposed (EITE) companies — those with high GHG emissions per unit of output and facing significant global competition — will benefit from a transition framework. This framework will provide allowances based on efficiency benchmarks and decarbonization targets, helping firms manage compliance costs while avoiding carbon leakage, particularly in light of measures such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
The government has stated that revenue collected from the Carbon Tax will be directed to:
Together, these measures aim to balance environmental ambition with economic competitiveness, while offering businesses both accountability and support during the transition.
