6 mins read
Published Jan 12, 2026
Singapore.
Singapore’s Climate Commitments, Carbon Tax and Sustainability Reporting
Singapore’s commitment to sustainability is evident in its Green Plan 2030, a comprehensive roadmap to balance economic growth with environmental protection.
The country has set ambitious climate goals and implemented concrete laws to reduce greenhouse gas emissions, from nationwide plans to sector-specific regulations.
National Climate Strategy and the Green Plan 2030
Singapore has pledged to achieve net-zero greenhouse gas emissions by 2050, aligning with global efforts under the Paris Agreement. This long-term goal is supported by interim targets; for example, Singapore aims to reduce its 2030 emissions to around 60 million tonnes CO₂ as part of its updated climate pledge (Nationally Determined Contribution).
To drive action toward these goals, the government launched the Singapore Green Plan 2030 in 2021. The Green Plan is spearheaded by five ministries and integrates climate action across all sectors of society, aligning Singapore’s development with the United Nations 2030 Agenda for Sustainable Development.
A defining feature of the Green Plan 2030 is its set of concrete targets that give Singaporeans clear objectives to work towards. Some of the key Green Plan targets include:
Planting one million more trees across Singapore to green the urban landscape and capture carbon.
Quadrupling solar energy deployment by 2025.
Reducing waste sent to landfill by 30% by 2030 through recycling and sustainable waste management.
Having at least 20% of schools be carbon-neutral by 2030, educating youth and cutting emissions in the education sector.
Ensuring that all new car registrations are cleaner-energy models from 2030 onward (such as electric or hybrid vehicles), paving the way for phasing out traditional gasoline vehicles.
These targets bring abstract climate goals down to everyday decisions – e.g., a family buying a car in 2030 will have cleaner-energy models only; schools upgrading their energy systems become demonstration sites.
Importantly, Singapore's climate strategy also addresses climate resilience. Under the Green Plan's Resilient Future pillar, the country is preparing for long-term impacts such as rising sea levels and food security challenges. Scientific projections show sea levels could rise by up to 1 meter by 2100 under higher emissions pathways.
In response, Singapore is strengthening coastal defences by developing advanced flood models and studying protective structures like sea walls, mangrove plantings, and elevated land designs.
On food security, Singapore has adjusted its strategy to reflect the challenges faced by the local agri-food sector. The original "30 by 30" goal, which aimed to produce 30% of nutritional needs locally by 2030, has been replaced with more focused targets announced in November 2025.
The new targets aim for local farms to supply 20% of fibre consumption (leafy and fruited vegetables, bean sprouts, mushrooms) and 30% of protein consumption (eggs and seafood) by 2035. This revised approach allows more time and focuses on specific food categories where Singapore can build meaningful production capacity.
These adaptation measures show that Singapore's climate action is comprehensive, covering both mitigation (emissions reduction) and adaptation to climate impacts, with timelines adjusted to reflect sector realities.
Singapore’s Carbon Tax Law
One of Singapore’s boldest climate measures is its carbon tax, which became the first carbon pricing scheme in Southeast Asia when it launched in 2019. It applies to large GHG emitters (≥ 25,000 t CO₂-eq/yr), covering about 80% of national emissions.
2019-2023: S$ 5 per tonne of CO₂-eq (transition phase).
From 2024: S$ 25 per tonne.
2026 and 2027: S$ 45 per tonne.
Target range by 2030: S$ 50-80 per tonne.
Example: a facility emitting 100,000 t CO₂-eq annually at S$ 45/tonne would face a tax bill of about S$ 4.5 million, so the incentive to cut emissions is real.
Singapore’s carbon tax is designed with flexibility and support measures. Companies can partially offset their taxable emissions by purchasing international carbon credits, up to 5% of their emissions from 2024 onwards, if these credits meet quality standards. This mechanism allows firms to fund verified emission reductions elsewhere (such as reforestation or renewable projects abroad) for a small portion of their obligations.
The government has also stated that revenues from the carbon tax are reinvested into green initiatives, helping industries adopt low-carbon solutions and cushioning any impacts on smaller businesses and households.
Energy Conservation & Sector Regulation
The Energy Conservation Act (ECA), enacted in 2012, requires large energy users to monitor and report energy use and implement energy management practices, and Singapore has progressively tightened efficiency requirements over time, including audits and standards for industrial systems.
This complements the carbon tax by offering regulatory pressure rather than only economic signals.
Mandatory Climate and Sustainability Reporting in Singapore
Singapore is phasing in a mandatory climate-related disclosure regime for businesses as part of its climate strategy. The law applies to all companies listed on the Singapore Exchange (SGX) and, from 2030, to large non-listed companies meeting size thresholds. A “large” non-listed company is defined as one with annual revenue of at least S$1 billion and total assets of at least S$500 million.
These measures form part of the Climate Reporting and Assurance Roadmap jointly announced by ACRA (Accounting and Corporate Regulatory Authority) and SGX RegCo, aimed at aligning Singapore’s requirements with international standards.
Implementation Timeline and Requirements
Note: Timeline updated by ACRA and SGX RegCo on 25 August 2025 to support companies in developing climate reporting capabilities.
Listed Companies
Financial Year | Entities Affected | Key Requirements | Additional Details |
FY2025 | All SGX-listed companies | Begin reporting Scope 1 and Scope 2 greenhouse gas (GHG) emissions. | Straits Times Index (STI) constituents must also disclose additional ISSB-aligned climate information, including governance, strategy, risk management, and metrics & targets. |
FY2026 | STI constituents only | Include Scope 3 GHG emissions covering value-chain activities. | Scope 3 disclosure remains voluntary for all non-STI listed companies until further regulatory guidance. |
FY2028 | Non-STI listed companies with market cap ≥ S$1 billion | Begin reporting other ISSB-based climate-related disclosures (governance, strategy, risk management, metrics & targets). | The requirement applies if a company has market cap ≥ S$1 billion as at close of market on 30 June 2025, even if market cap subsequently falls below this threshold. Companies listed after 30 June 2025 with market cap ≥ S$1 billion must report from the later of: (i) FY2028 or (ii) their first full financial year after listing. |
FY2029 | All listed companies | Obtain independent limited assurance (third-party verification) for Scope 1 and Scope 2 GHG emissions data. | Deferred from the original FY2027 timeline. Assurance must be provided by accredited auditors or firms approved by ACRA. |
FY2030 | Non-STI listed companies with market cap < S$1 billion | Begin reporting other ISSB-based climate-related disclosures. | Scope 1 and 2 emissions reporting started in FY2025. Scope 3 remains voluntary. |
Large Non-Listed Companies
Financial Year | Entities Affected | Key Requirements | Additional Details |
FY2030 | Large non-listed companies (annual revenue ≥ S$1 billion AND total assets ≥ S$500 million) | Begin reporting ISSB-based climate-related disclosures under IFRS S1 (climate-relevant provisions) and IFRS S2, including Scope 1 and Scope 2 GHG emissions. | Deferred from the original FY2027 timeline to allow companies more time to build climate reporting capabilities. |
FY2032 | Large non-listed companies | Obtain independent limited assurance for Scope 1 and Scope 2 GHG emissions data. | Deferred from the original FY2029 timeline. Scope 3 emissions reporting remains voluntary until further notice. |
Key Changes from Original Timeline
External assurance for listed companies: Deferred from FY2027 to FY2029.
External assurance for large non-listed companies: Deferred from FY2029 to FY2032.
Other ISSB-based disclosures for non-STI companies: Phased implementation based on market capitalization (FY2028 for ≥S$1B, FY2030 for <S$1B).
Large non-listed companies: Full ISSB-based reporting deferred from FY2027 to FY2030.
Scope 3 reporting: Mandatory only for STI constituents from FY2026; remains voluntary for all other listed companies and large non-listed companies.
Three-Tier Structure for Listed Companies
Tier 1: STI constituents (leading implementation).
Tier 2: Non-STI listed companies with market cap ≥ S$1 billion.
Tier 3: Non-STI listed companies with market cap < S$1 billion.
Alignment with Global Standards
Singapore’s climate reporting rules are deliberately aligned with leading international frameworks. The disclosure requirements are based on the International Sustainability Standards Board (ISSB) guidelines; in particular, IFRS S1 and IFRS S2 (the global sustainability and climate disclosure standards).
IFRS S2 incorporates the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), ensuring that companies report climate-related risks and opportunities under the same pillars used worldwide (governance, strategy, risk management, and metrics & targets).
This alignment means Singapore’s reporting regime is consistent with global best practices and helps investors compare companies’ progress on decarbonisation across markets.
Advancing Sustainable Aviation Fuel (SAF) in Singapore
In addition to economy-wide measures, Singapore is championing innovation in specific sectors, such as aviation. A prime example is the push for Sustainable Aviation Fuel (SAF), a cleaner alternative to conventional jet fuel.
SAF can be produced from renewable or waste materials (feedstocks like used cooking oil, plant residues, or even municipal waste) and can significantly reduce carbon emissions when compared to traditional jet fuel.
This makes it one of the most promising solutions to cut aviation’s carbon footprint, which is otherwise hard to abate with current technology and global infrastructure.
Singapore’s Recent SAF roadmap:
In 2023-4, Singapore expanded SAF production capacity: Neste opened a large‐scale SAF facility (1 million t/yr capacity) in Singapore, making the country a regional SAF supply hub.
From 2026, Singapore will mandate that all flights departing from Singapore contain a minimum SAF blend (initially 1%). Future aim: 3-5% by 2030 (subject to global supply).
SAF is expected to play a meaningful role in reducing aviation emissions, subject to cost, supply, and lifecycle performance considerations.
Conclusion
Singapore’s climate framework now combines ambition, enforcement, and transparency. The Green Plan 2030 provides direction, the carbon tax and energy efficiency laws drive measurable change, and the mandatory climate reporting regime ensures businesses disclose their sustainability impact.
This blend of strategy and regulation creates a connected ecosystem that rewards companies able to measure, manage, and communicate their environmental performance.
Looking ahead, a key challenge will be scale. Expanding disclosures across value chains and ensuring that emissions data is auditable and interoperable will require advanced digital systems. As more organisations prepare for Scope 1, 2, and 3 reporting, together with external assurance, digital traceability, automated data collection, and transparent carbon accounting will become essential infrastructure.
If your organisation is navigating this transition, contact us today for a strategy call.
