Daily CSR
Daily CSR

Daily CSR

Daily news about corporate social responsibility, ethics and sustainability


Singapore Adopts Carbon Taxation



04/25/2017

Singapore takes “a step in the right direction” to battle climate change.


Dailycsr.com – 25 April 2017 – Amid the south-east Asian nations, Singapore turns out to be the first one who introduces a tax on carbon, reported Brian Collett.
 
The said decision stands as a reversal process, whereby “a few years ago”, the government of Singapore did not take the carbon emission into consideration for policy making and thus, it “rejected carbon taxation”. However, the current introduction of carbon tax is likely to be application from the year of 2019.
 
As a result of carbon taxation in place, every “tonne of greenhouse gas” emission will attract a tax amount that will range “between S$10 and S$20” which equals to “$7.15” and “-$14.30” respectively. Even though the tariff bears the name of carbon tax, the demand for tax on emission will be applicable even for “methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride” emissions.
 
Various oil refineries such as “Royal Dutch Shell and ExxonMobil”, totalling up to forty to fifty refineries, are present in Singapore. According to Leonard Ong, a Tax partner at KPMG, the latter being an “international business consultancy”, the Singaporean carbon levy is “a step in the right direction for Singapore”. In his words:
“With carbon emissions issues becoming of increasing concern, it is only right that Singapore, as a responsible global city, should take the lead in this region and aim to avoid an excessive carbon footprint.”
 
Moreover, Collet also added:
“Observers point out that Singapore, with a population of just over five million, is responsible for only 0.11 per cent of global emissions. However, the significance is that, if Singapore shows that a rich nation can compete and grow while tackling climate change, the example to world will be invaluable”.
 
Indonesia as well as the hub oil production, Malaysia, could follow in the footstep of Singapore as a responsible business practitioner. Looking at the U-turn of Singapore on carbon tax policy, Brian Collet contemplates that only a growing “awareness” of the risks involved in the “surrounding rising sea levels” a direct consequence of climate change could be the answer, while Singapore’s commitments made during the “2015 Paris climate change conference” could also add to the decision making process.
 
 
 
References:
http://www.ethicalperformance.com