Introduction of Carbon Tax in Singapore - What Will This Mean for Companies?
- 22nd August 2018
With the Singapore Government introducing a carbon tax to approximately 40 facilities in 2019, what will this mean for companies?
And perhaps of more immediate concern to organisations, is that the Government is also introducing requirements for many more companies to report their greenhouse gas (GHG) emissions on an annual basis.
These policies will bring new strategic and operational challenges, risks and opportunities for many businesses in Singapore– particularly, those in energy generation, industrial and commercial activities, waste and manufacturing.
The carbon tax will also likely present higher input costs for end-users, such as those who use electricity in their day-to-day operations. Though initially only starting at a modest SGD 5 per tonne of GHG emitted by a “taxable facility”, the Singapore Government has signalled its intention to raise the carbon tax to SGD 15 to 20 in the next few years.
Many companies in Singapore will need to take three broad steps to manage the impact of the carbon tax. The first step is to measure the GHG emitted from each of its facilities, according to the Government-approved carbon accounting framework. Measuring GHG emissions allows companies to assess whether or not they are captured by the carbon tax.
The second step is for companies to then understand their exposure to the carbon tax more comprehensively, and develop a carbon management strategy to respond appropriately – with the core objective of achieving government compliance at the lowest cost. The step includes assessing the economic impact of the carbon tax on different low emissions. Lastly, companies can go a step further, and consider the immense opportunities associated with tapping into annual climate finance flows, which are valued at around US$350 billion per annum.
Managing the impact of carbon tax effectively will also require personnel with the right skillsets. In August 2018, the London School of Business and Finance (LSBF) and Australian Centre for Sustainability Studies & Training (ACSST) will jointly deliver the Diploma of Sustainable Operations (DSO) – majoring in Carbon, Energy, Water and Waste Management.
This 10-day* fast-track programme, running from 27 August to 7 September 2018 in Singapore, is accredited by Singapore’s Ministry of Manpower (selected modules) and the Australian Government.
The DSO will provide professionals with the fundamental knowledge and skills in climate economics and policy (including Singapore’s carbon tax), carbon accounting, assessing low-emissions technologies (including developing a marginal abatement cost curve), and in building a comprehensive carbon management strategy for their organisation.
Leveraging the opportunities and managing the risks of a low-carbon sustainable economy requires enhanced skillsets in accounting, business, legal, engineering, social, science, and economics.
With these skillsets, professionals can also effectively advise business leaders and government officials on which projects and strategies will best meet an organisation’s sustainability goals. This accredited course not only addresses carbon and energy but also other emerging sustainability challenges revolving around water, waste and social sustainability. It is an essential ‘bolt-on’ qualification for any discipline, qualification or existing skillset.