Highlights

• Pressure on Singapore piles up to disclose carbon tax concessions allowed to oil companies, including ExxonMobil and Shell.
• Environmental groups aver that hushing up around tax allowances derails emission reduction targets and public accountability.
• The National Climate Change Secretariat (NCCS) says concessions are confidential, but critics call for transparent data on emissions impact.

Environmentalists in Singapore are calling for more transparency over carbon tax concessions given to large oil companies such as ExxonMobil, Shell, and Chevron.

They say that these tax concessions may reduce the motivation for these firms to transition to cleaner energy sources.

Singapore, with a population of six million, is the only Southeast Asian country that has already imposed a carbon tax, while neighbouring countries like Indonesia, Malaysia, and Thailand have similar plans on the cards.

Read More: Singapore Delays Climate Disclosures for Smaller Firms

The National Climate Change Secretariat (NCCS) has stated that the concessions are not “free passes” for corporations, but has refrained from releasing complete information on the allowances granted, saying such data might expose company strategies.

In response, environmental groups question this stance. According to them, the lack of information prevents the public from assessing how effective the carbon tax has been in reducing emissions.

The carbon tax, first implemented in 2019, started at S$5 per tonne of emissions and has been raised gradually to S$25 last year. It is due to reach S$45 in 2026 and eventually between S$50 and S$80 per tonne by the end of this decade.

This gradual increase, note officials, helps industries move toward low-carbon technologies, but some critics are concerned that private concessions granted to large corporations dampen fairness.

Also Read: Singapore Firms Explore CCS Options for Power Sector

Vinod Thomas from the ISEAS–Yusof Ishak Institute, also an expert on the issue, says Singapore’s actions matter because it is viewed as a regional example in climate policy. Although the nation contributes only 0.1% of global emissions, its per-person emissions rank among the world’s highest. This makes its transparency and progress on carbon pricing important for the rest of Southeast Asia.

Local groups, including Energy CoLab and LepakInSG, have lobbied the government to release emissions data to hold larger polluters accountable. They are also worried that carbon tax costs might be passed on to consumers through higher electricity bills.

At a rate of S$50 per tonne, as per estimates, monthly utility bills for public housing households could rise by S$8. Campaigners say the government should design policies that shield vulnerable households from this burden.

The debate has also intensified as international talks on creating a global carbon tax on shipping emissions were disrupted after Donald Trump rejected the idea. Experts, including Shi-Ling Hsu from Florida State University, opine that the lack of US participation could delay global progress.

See Also: PwC: Singapore's Sustainability Legal Services to Triple by 2033

Amid this backdrop, environmentalists in Singapore hold their ground, urging the country to uphold transparency to preserve trust in its climate policy framework.

Ends/

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Source: Yahoo Finance