Singapore to implement carbon pricing

February 18, 2017 by  
Filed under Insights

Now that Singapore will be implementing carbon pricing, the first question is whether it would be in the form of a carbon tax or a cap and trade system?

Carbon tax allows price certainty but uncertainty in emissions reduction. Easier to implement and price certainty is good for businesses. But usually tax increase is not favoured politically.

Cap and trade allows more certainty in emissions reduction but price can become volatile. Not easy to implement, need an agency to set up an emissions trading system.

I favour the straightforward carbon tax. Regardless of the type of carbon pricing – either carbon tax or cap and trade, what matters is that it is a well-designed system that can ensure that the necessary emissions reduction is achieved while providing certainty to businesses (in this economic downturn).

The second question is whether business and living costs would go up. I’m not too worried about this because the revenue from carbon pricing can be used to offset cost increases, in the form of reduced business tax, tax credits, household rebates, etc.

The third question is the scope and timeline for implementation of the carbon pricing. I think it would start with big emitters, likely those companies under the Energy Conservation Act, since they are already taking action to reduce emissions. I think carbon pricing would take at least 2 years or earliest 2020 before it kicks in, considering the need for legislation change, consultations, setting up the system, and considering the current economic downturn.

Just my preliminary thoughts, more details on the carbon pricing will be announced by the government soon.

Shifting into high gear with carbon pricing

December 1, 2015 by  
Filed under Insights

This article is contributed by Jovin Hurry, who is reporting from Paris.

COP21 - carbon pricing

To price or not to price, that has been the long debated question.

Now the question has changed – how much to price carbon.

The heads of state and government of France, Chile, Ethiopia, Germany, Mexico and Canada with the leaders of the World Bank Group and the International Monetary Fund in a tour de force of unity are calling onto companies and countries to put a price on carbon to drive investment for a cleaner, transformed global economy.

Carbon pricing in simple terms is about charging those who emit carbon dioxide (CO2) for their emissions, as an economic mechanism for reducing global-warming emissions. This charge is a carbon price, an amount paid for the right to emit one tonne of CO2 into the atmosphere. Read more