Database / Singapore / 2025

Singapore Carbon Pricing (CCUS) Framework 2025

Regulatory Active Verified

Singapore prices carbon without storing it at home: the Carbon Pricing Act (2019, S$5) amended November 2022 and effective January 2024 drives S$25 (2024-25) to S$45 (2026-27) toward S$50-80 by 2030 across manufacturing, power and waste facilities above 25,000 tCO2e, with robust NEA MRV regulations, 5% International Carbon Credit offsets from 2024 (11 implementation agreements; 2025-quota rollover with $25/$45 conversion), an EITE transition framework, and ICC rollover expiry discipline. There is deliberately no CCS-specific legislation: with no geological storage, strategy is cross-border structuring — the ExxonMobil/Shell S Hub consortium evaluating 2.5 Mt/yr by 2030 for subsea/rock export storage, EMA feasibility studies (three firms, July 2025, post- and pre-combustion), a 2026 waste-to-energy CCS pilot, a PUB ocean-removal pilot (10 t/day by 2026), and Indonesia/Malaysia MoUs — toward a 2 Mt/yr 2030 abatement goal. The law taxes; the programme exports.

National Governance Context

Singapore Overview

Aggregate National Maturity Index (Peak Strength)

Governed Policies

Identified Projects

Operational Cap 0.0 Mtpa

Under Construction Cap 0.0 Mtpa

Planned Cap 2.5 Mtpa

Related Policy Network

Directly Linked Assets

S-Hub project (*capture sources under evaluation)

T&S — 2.5 Mtpa

Rexus Wood Waste-to-Energy Plant (Lion)

CCU — 0 Mtpa

Policy Classification

FSRTM 5.0

Economic

S$25 to S$45 to S$50-80 with 5% ICC offsets and EITE transition allowances prices carbon harder each step while funding adjustment, not exemption.

Statutory

The amended Carbon Pricing Act with EITE framework plus 11 ICC implementation agreements gives price and cooperation treaty cover without pretending to a storage law.

Market

The S Hub consortium plus EMA studies, pilots and ID/MY MoUs structure a 2.5 Mt/yr export market with contracted foreign sinks instead of domestic storage fiction.

Strategic

Singapore plays finance-and-structuring for regional CCS (2 Mt/yr 2030 goal) — the honest role for a no-sink economy, and the most replicable ASEAN template.

Technical

NEA measurement-reporting-verification regulations with ICC integrity discipline, rollover conversion maths and expiry rules form the strictest ASEAN carbon accounting.

Strategic Impact Analysis

Economic Impact

A rising S$45 tax with 5% ICC offsets prices industrial carbon now while S Hub structuring converts the tax signal into contracted export storage later.

Technical Impact

EMA capture studies, the WtE pilot and PUB ocean removal build a domestic capture-and-removal technology base that assumes foreign sinks from day one.

Environmental Impact

No-storage honesty plus ICC integrity discipline (11 agreements, four-year credit gestation) keeps the strategy inside verifiable cross-border accounting.

Technical Metadata

Lead Institution National Environment Agency (NEA)

Release Date 2025-01-01

Policy Tags

carbon tax trajectory ICC offsets S Hub cross-border structuring no storage law EITE framework

Legal Weight Primary Legislation

Original Document

Last Intelligence Audit 2026-09-09