“Singapore already has the highest carbon tax rate in the whole of Asia,” says Wong. “If global climate momentum continues to weaken, we may need to position ourselves towards the lower end of the $50 to $80 per tonne range by 2030.”
Despite some parts of the world reversing course on climate change, Singapore will be pushing on with its sustainability agenda to address climate risks and secure the island-state’s long-term future, according to Prime Minister Lawrence Wong at Singapore’s 2026 Budget Statement.
However, Wong also sounds caution on the impact of carbon taxes on Singapore’s competitiveness, saying that the government will “carefully” assess the trajectory of the carbon tax which is now at $45 per tonne and scheduled to rise to $50-$80 per tonne in the next five years.
