Carbon Tax-Liable Companies Can Carry Forward Unutilised Carbon Credits Offset Quota For Emissions Year 2025

11 May 2026 – Companies liable to pay carbon tax will be allowed to roll over any unutilised International Carbon Credit (ICC) offset quota from emissions year 2025 to emissions year 2026.

2          Under Singapore’s ICC Framework, companies can use eligible, high-quality ICCs to offset up to 5% of their taxable emissions each year. This provides carbon tax-liable companies with an alternative way to meet part of their carbon tax obligations, while supporting the development of high-integrity international carbon markets.

3          To date, the Government has signed 11 Implementation Agreements and launched application calls for carbon credit projects in Bhutan, Ghana, Peru, Rwanda, and Thailand. The calls were launched from late 2025 to early 2026. As carbon credit projects typically take a few years to generate credits, supply will take time to build up. Recent global developments — including a stronger industry focus on carbon credit integrity and evolving international carbon market rules — have also delayed the overall supply of eligible credits.

4          To address the lack of eligible ICCs available today, the Government will allow companies to carry forward their unutilised 5% offset quota from emissions year 2025 to emissions year 2026. This one-year rollover is intended as a transitional measure to give more time for international carbon markets under Article 6 of the Paris Agreement to mature, and for more ICCs to become available.

5          As the carbon tax rate will be raised to $45 per tonne in emissions year 2026, a credit conversion formula will be applied to adjust the 2025 offset amount to be carried over to 2026. Companies should note that ICC offset quota carried over from emissions year 2024 to emissions year 2025 will expire and cannot be carried forward further. Please refer to the Annex for more details on the emissions year 2025 roll over.

6          The Government remains committed to supporting the development of a high-quality international carbon market and will continue working with its Implementation Agreement partners to expand the pipeline of eligible credits. 

Annex_Roll over of Unutilised ICC Offset Quota for Emissions Year 2025