Singapore launches greenhouse tax

A new tax on greenhouse gases announced by Singapore Finance Minister Heng Swee Keat in parliament on Monday will apply to six categories – carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs; which are widely used in the HVAC&R industry), perfluorocarbons (PFCs), and sulphur hexafluoride (SF₆). Singapore’s aim in introducing the first such tax in Southeast Asia is to protect future generations from the effects of rising global temperatures, which in 2016 reached record highs. The government is currently looking at a tax rate of between $10 and $20 per tonne of greenhouse gas emissions. Keat said, “[the Singapore government] will consult widely with stakeholders, and aim to implement the carbon tax from 2019”. Consultations with industry have already begun. Public consultations begin in March. The final price and schedule of the tax will only emerge once consultations and further studies have taken place. The tax is only expected to apply to large emitters. The Singapore government does not envisage it having a major impact on consumers or small businesses. The government is already addressing indirect emissions from electricity usage in the HVAC&R industry by using energy efficiency labels on air-conditioners and refrigerators.   Read More