Singapore Singapore: New rules on online compliance system for carbon tax

On April 27, 2020, the Government of Singapore promulgated the following three-regulations under the Carbon Pricing Act, all of which came into effect on May 1, 2020. The Regulation 1 below is a completely new regulation and provides details for the notice on the assessment result of the carbon tax payable. The Regulations 2 and 3, on the other hand, amend existing regulations on carbon pricing, in line with the newly established Regulation 1, and introduce an online system for carbon-tax compliance procedures.

  1. Carbon Pricing (Carbon Tax and Carbon Credits Registry) Regulations 2020
    https://sso.agc.gov.sg/SL/CPA2018-S330-2020?DocDate=20200427&ViewType=Pdf&_=20200427202312
  2. Carbon Pricing (Registration and General Matters) (Amendment) Regulations 2020
    https://sso.agc.gov.sg/SL-Supp/S329-2020/Published/20200427?DocDate=20200427&ViewType=Pdf&_=20200427202312
  3. Carbon Pricing (Registration and General Matters) (Amendment) Regulations 2020
    https://sso.agc.gov.sg/SL-Supp/S328-2020/Published/20200427?DocDate=20200427&ViewType=Pdf&_=20200427202312

In addition to the above Regulations, the National Environment Agency (NEA) of Singapore has issued a FAQ, which is accessible via the URL below, on the greenhouse gases measurement and reporting requirements under the Carbon Pricing Act. Business entities involved are recommended to review the FAQ.
https://www.nea.gov.sg/docs/default-source/our-services/climate-change/m-r-faq-(ver-15-feb-2018).pdf

Introduction of the EDMA system

The above-mentioned set of Regulations have introduced the Emissions Data Monitoring and Analysis (EDMA) system (see the above picture). The EDMA system allows various procedures required under the Carbon Pricing Act to be carried out online. With this system, business entities involved in the carbon pricing are required to comply with the applicable Regulations. The details of the EDMA are specified in the Regulation 2.

Assessment of carbon tax

Under the Carbon Pricing Act, NEA will assess the amount of carbon tax to be paid by each business entity. The assessment result will be notified to each entity through the EDMA system. The notice will include: the assessed amount of GHG emissions (tCO2e), the tax chargeable, the number of carbon credits required, and the date by which the carbon credits shall be purchased.