Impact of Unused Carbon Offset Limits from 2024 to 2025 on Singapore’s Carbon Emissions Pathway

Ms Eileen Chong Pei Shan asked the Minister for Sustainability and the Environment (a) what is the projected impact of allowing companies to roll over their unused carbon offset limit from 2024 to 2025 on Singapore's carbon emissions pathway; and (b) whether the Ministry intends to continue this policy when the carbon tax rises to $45/tCO2 in 2026.

The Government had permitted carbon taxable companies to roll over their unused carbon offset limits from 2024 to 2025 due to a constrained supply of International Carbon Credits as the market is still in nascency. We have not decided whether to extend the rollover provision for Emission Year 2025.