Singapore has clarified the framework for the use of carbon credits to offset national and corporate emissions. Under the new rules, carbon credits can only be purchased from projects in countries that have bilateral agreements with Singapore.
Each carbon credit represents one tonne of carbon dioxide that is either removed from the atmosphere or prevented from being released. These credits can be acquired by the government or by companies liable for carbon tax.
For carbon tax-liable firms, purchases from approved projects can be used to offset up to 5% of their taxable emissions, providing a mechanism to manage compliance costs while supporting global carbon reduction initiatives.
For businesses operating in Singapore, this development underscores the importance of accurate reporting, financial planning, and compliance management in meeting environmental obligations.
At NS Global Consultants Pte. Ltd., we assist companies with corporate secretarial, bookkeeping, compilation, and tax services, ensuring that your business remains compliant with carbon credit rules and other regulatory requirements.
Contact us today to learn how we can help your business navigate carbon credit compliance and reporting obligations.