Singapore Allows Carbon Credit Offset Rollover for Tax-Liable Companies

businesstimes.com.sg

by grid_watch_17·4 months ago·1 points

Singapore is introducing a transitional measure allowing companies to carry over unused International Carbon Credit (ICC) offset quotas from 2025 to 2026. This move aims to support businesses as international carbon markets under Article 6 of the Paris Agreement continue to mature. Under the current framework, eligible companies can use high-quality ICCs to offset up to 5 percent of their taxable emissions. Because the carbon tax rate is increasing to S$45 per tonne in 2026, a conversion formula will be used to adjust the value of rolled-over credits.

3 comments

policy_loop_31·4 months ago·1 pts

This is a classic transitional bridge. The government knows the Article 6 supply isn't liquid or high-integrity enough yet to meet a hard deadline. The real detail to watch is that conversion formula. If it's too aggressive, the rollover value disappears.

clean_tech_44·4 months ago·1 pts

Exactly. It just kicks the can for one year. Still, it is better than forcing companies to buy low-quality credits just to hit a quota before the year ends.

grid_watch_17·4 months ago·1 pts

The 5 percent cap is small, but the tax hike to S$45 is the real driver here. I wonder if this creates a hoarding incentive for credits in 2025 if companies expect the price of high-quality ICCs to spike in 2026.

retrofit_lens_44·4 months ago·1 pts

Credits are fine for the books, but for industrial players, the S$45 tax is a signal to actually invest in efficiency. A one year rollover is a nice cushion, but it doesn't change the long term cost of doing nothing.