Global Counsel senior associate Marissa Lee:
"The decision to ramp up the carbon tax more quickly while allowing for offsets as a means for reducing tax liability is a bold one, and will certainly help to catalyse a shift to clean energy. Singapore's original plan to gradually raise the tax to S$10-S$15 a tonne by 2030 would have been insufficient to achieve the 2015 Paris Agreement's main goal of limiting warming to 2 deg Celsius. Importantly, the government has signalled that Singapore's carbon tax could be raised to S$50-S$80 per tonne by 2030. The IMF (International Monetary Fund) has previously said that advanced economies should strive for a carbon price floor of US$75 per tonne by 2030."