Budget 2026: Carbon tax to reach $50 to $80 per tonne by 2030

Government says it will calibrate future moves to avoid disadvantaging domestic sectors.

Singapore raised its carbon tax to $45 per tonne for 2026 and 2027, as part of a plan to reach $50 to $80 per tonne by 2030. 

“The additional U-Safe rebates that I highlighted earlier will help cushion the impact of the carbon tax for businesses,” Prime Minister Lawrence Wong said at the Singapore Budget 2026.

“We will extend the energy efficiency grant and support for green loans under the enterprise financing scheme. This will help firms invest in energy-efficient and sustainable solutions, whist Singapore will continue to contribute responsibly to climate action,” he added.

Singapore will calibrate its carbon tax carefully in response to international developments to avoid disadvantaging domestic industries. 

It already has the highest carbon tax rate in Asia. The government emphasised that technological breakthroughs and sustained international cooperation will be critical to achieving net zero, and progress may be uneven, but efforts will remain credible and forward-looking.

On clean energy, Singapore has reached its 2030 solar deployment target of 2 gigawatt-peak ahead of schedule and will raise the target to 3 gigawatt-peak.

“Beyond that, we will continue to maximise solar deployment across all viable services and progressively set more ambitious targets further into the future. We are also advancing plans to import low-carbon electricity from the region,” Wong added.

Cooperation agreements on nuclear energy have been initiated with the US and France, with discussions underway with South Korea and other partners to assess safety and viability for Singapore.