Singapore has no emissions trading scheme. Instead it puts a tax on the emissions of its largest facilities, and lets them pay part of that tax with high-quality international credits. Anyone can also buy voluntary credits. This guide explains both routes, plus the tax and advertising rules. For other countries, see our countries hub.

Singapore’s carbon tax

The carbon tax was introduced through the Carbon Pricing Act on 1 January 2019Source 6. It applies to all industrial facilities with annual direct greenhouse gas emissions of at least 25,000 tonnes of CO₂e, and the National Environment Agency (NEA) administers itSource 6.

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Singapore carbon tax rates, as of October 2026
YearsRate per tonne of CO₂e
2019–2023S$5
2024–2025S$25
2026–2027S$45
By 2030S$50–80 (planned)

As of Oct 2026

The rates above are published by NEASource 6. South Africa also taxes carbon and lets taxpayers use offsets for part of the bill; see our South Africa guide. Singapore’s 2035 NDC, submitted on 10 February 2025, aims to reduce emissions to between 45 and 50 million tonnes of CO₂e in 2035, on the way to net zero by 2050Source 5.

Using international credits against the tax

From 1 January 2024, taxable facilities can use high-quality international carbon credits (ICCs) to offset up to 5% of their taxable emissionsSource 6. The eligibility criteria were set out in October 2023Source 7:

  • Authorised credits only. Credits must be authorised by the host country for corresponding adjustment, so the reductions count only towards Singapore’s climate targetsSource 7.
  • Recent reductions. The reductions must have occurred between 1 January 2021 and 31 December 2030Source 7.
  • Integrity principles. Credits must be not double-counted, additional, real, quantified and verified, permanent, cause no net harm and avoid leakageSource 9.

NEA published its first eligibility list on 19 December 2023. It specifies eligible host countries, carbon crediting programmes and methodologies, and the first list named Papua New Guinea as a host countrySource 8. NEA notes that carbon credit projects typically take up to four years to generate credits, so supply will take time to build upSource 6.

A compliance route, not a shop

The ICC route is for facilities that pay the carbon tax. If you want to compensate for your own or your company’s emissions voluntarily, you buy in the voluntary market below. Our guide to voluntary vs compliance markets explains the difference.

Buying voluntary credits in Singapore

Individuals and businesses buy from online retailers, marketplaces, exchanges and brokers. Singapore is home to exchanges aimed at corporate buyers, and international retailers sell to individuals. Compare providers on registry serials and certificates in where to buy, or read our guide for companies if you buy for a business.

Before you pay, ask which registry holds the credits and check that they are retired in your name.

Reduce first, then offset

Cut what you can before you buy, and use credits for the emissions that are left. Our guide for individuals shows how to size a purchase.

Claims and tax notes

GST on carbon credits

IRAS treats the issuance, transfer or sale of any carbon credit, including those issued by NEA, as neither a supply of goods nor a supply of services, so no GST is charged on the creditSource 18. Services relating to carbon credits, such as exchange, brokering and legal services, are standard-rated unless they qualify for zero-ratingSource 18.

If your business buys credits to voluntarily reduce its carbon footprint, IRAS regards the expense as closely linked to your business, and the related GST is claimable as residual input taxSource 18. Get professional advice on income tax.

What you can say about offsets

The Singapore Code of Advertising Practice says the basis of an environmental claim should be explained clearly and qualified where necessary, because unqualified claims can mislead if they omit significant informationSource 19. Claims such as “environmentally friendly” should not be used without qualification unless the advertiser has convincing evidenceSource 19. The code has no rule specific to carbon offsets.

Whatever label you use, the evidence that matters is the same: which credits were retired, how many, and where the registry record is. Ask for it before you rely on a claim, and give it when you make one.

How to check quality before you buy

Each Verra credit represents one tonne of CO₂e reduced or removedSource 1, and registries such as Gold Standard’s track every credit from issuance to retirementSource 2. That makes three checks possible before you pay:

  • Is it in a public registry? Ask for the registry and serial numbers, and check the credits are retired in your name.
  • Is the method credible? The ICVCM’s Core Carbon Principles set a quality threshold, and credits that meet it can carry the CCP labelSource 3.
  • Is the seller clear? A good seller says what you are buying, what it charges and how and in whose name it retires credits.

Our guide to how to verify carbon credits shows the steps, and carbon credit scams lists the warning signs.

Article 6 deals

Singapore signs Implementation Agreements under Article 6 of the Paris Agreement with countries that host credit projects. As of June 2026, it had signed with 11 countries: Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, Thailand, Vietnam, Mongolia and the PhilippinesSource 10.

  • Papua New Guinea was the first, on 7 December 2023Source 11.
  • Ghana followed on 27 May 2024Source 12, then Bhutan on 28 February 2025Source 13 and Peru on 1 April 2025Source 14.
  • Paraguay, on 23 May 2025, was the seventh, after Chile and RwandaSource 15.
  • The Philippines signed on 30 April 2026Source 16, and Lao PDR became the 12th partner on 4 September 2026Source 17.

The full list of agreements is in the fact card on this page. Switzerland also signs bilateral Article 6 agreements, including with Peru, Ghana, Thailand and ChileSource 4; see our Switzerland guide. Japan runs a different bilateral model, the Joint Crediting Mechanism; see our Japan guide.

How to buy, step by step

  1. Step 1: Work out what to cover

    Estimate your footprint and cut what you can first.

  2. Step 2: Choose a route

    Buy voluntary credits from a provider; taxable facilities can also use eligible ICCs.

  3. Step 3: Pick a provider or project

    Compare providers on registry serials, certificates and fees.

  4. Step 4: Check the registry record

    Confirm the credits are retired in your name on the registry.