Structuring Carbon Relief Allowances to Support Emissions-intensive Trade-exposed Companies and Retain Jobs for Singaporeans

Ms Nadia Ahmad Samdin asked the Deputy Prime Minister and Minister for Trade and Industry whether the Ministry can consider ways of structuring the carbon relief allowances provided under the transition framework to provide support for emissions-intensive trade-exposed companies, such that eligible companies can retain jobs for Singaporeans and continue to value-add to our economy.

This is indeed our approach. Allowances, when given judiciously, provide time for companies in emissions-intensive and trade-exposed (EITE) sectors to make an orderly transition, and ensure that Singapore continues to be an attractive location for them to provide good jobs for Singaporeans.

The alternative would be to risk losing these companies to jurisdictions with a lower or no carbon price. Beyond their direct value-add and jobs, many of these companies are part of integrated value chains in Singapore, which means any exit would have a consequential impact on other companies in Singapore, including local suppliers and service providers.

We are committed to helping companies transition and continue their economic activities here and add value to our economy.