Singapore Green Plan 2030 is the government's next ten-year plan for sustainability, and its full details have not been released yet. On 1 February 2021, Minister Grace Fu told Parliament that the plan would be announced "in the coming weeks." It will involve several ministries at once. This note covers what is already public, so a business owner can start planning.
What we know about the plan so far
The Minister for Sustainability and the Environment called the plan a multi-ministry, whole-of-nation movement. She said each sector would get ambitious and concrete targets, and that ministers would help build programmes to reach them. The Deputy Prime Minister is expected to speak on the sustainability agenda during the Budget debates.
The plan is also meant to be a "living" document. That means it can change over time as technology and costs change. The speech did not list the plan's pillars or its exact launch date, so treat any list of pillars you see before the launch as a guess.
Carbon tax is already in force
Singapore began charging a carbon tax in 2019. The rate is S$5 per tonne of greenhouse gas emissions for the first five years. It applies to facilities that emit 25,000 tonnes or more in a year, and it is charged on their total emissions. The first payment was due in 2020, based on 2019 emissions.
The rate will be reviewed before those five years end. The government has said it intends to raise the rate to between S$10 and S$15 per tonne around the close of the decade, though that figure depends on world developments, progress on cutting emissions and the economy's competitiveness. It is an intention, not a fixed promise. Smaller firms fall below the threshold, but they may buy from suppliers that pay the tax.
The emissions goals behind the plan
In February 2020, Senior Minister Teo Chee Hean announced that Singapore would submit an updated climate pledge to the United Nations. The country aims to peak emissions at 65 million tonnes of carbon dioxide equivalent around the end of the decade. It then aims to cut them to 33 million tonnes by 2050. The goal is net zero emissions as soon as viable in the second half of the century.
In her February 2021 speech, Minister Fu repeated these numbers. She also said Singapore produces about 0.1% of global emissions, and that it still wants to act. For a business, these goals set the direction. Rules on energy use, buildings and waste are likely to tighten over time.
Energy, transport and buildings
The Minister gave several targets that firms can plan around. Solar capacity is to reach 1.5 gigawatt-peak by the mid-2020s and at least 2 gigawatt-peak by the end of the decade. The plan is to phase out internal combustion engine vehicles, so that all vehicles run on cleaner energy by 2040. Public transport investment will continue.
For buildings, the government is pushing Super Low Energy Buildings and preparing the next edition of the Singapore Green Building Masterplan. The energy and chemicals sector made up about 3% of GDP in 2019 and employed more than 25,000 people. She said companies should redesign operations to use resources more efficiently, and that costs may fall as technology improves, as with electric vehicles.
Waste rules to watch
Waste is another area with a plan already in place. The Zero Waste Masterplan was announced on 30 August 2019. It aims to cut the waste sent to Semakau Landfill by 30%, which would help extend the landfill's life. At current rates the landfill is expected to run out of space by the mid-2030s. Industrial waste recycling stood at 74% in 2018, against about 20% for household waste.
Parliament passed the Resource Sustainability Act on 4 September 2019, and it became law on 23 September 2019. It sets rules for three areas: electrical and electronic waste, food waste and packaging waste. Some parts started on 1 January 2020, and the rest are being phased in. Check the Act and the National Environment Agency's guidance for the duties that apply to your firm.
What a business can do this month
- Check whether any of your sites emit 25,000 tonnes or more a year. If so, budget for the carbon tax and the coming rate review.
- Measure your energy use, waste and packaging now. You cannot set a target without a starting number.
- Ask your suppliers how they plan to handle carbon cost and waste rules.
- Read the full plan the day it is released, then update your own plan.
This is a plan summary. What the carbon tax means for your own firm is a question for a qualified tax adviser.