Can carbon credits be used to offset emissions for carbon tax?
Companies may utilise high quality international carbon credits to offset up to 5% of their taxable emissions from 2024.
"At minimum, for instance, the credits must be certified by Verra or Gold Standard - two international organisations that have developed standards to ensure the carbon offsets they certify truly result in a reduction in the amount of greenhouse gases in the atmosphere.
The two bodies also have registries that list certified projects, enable the trading of carbon credits and allow "used" credits to be retired so the same credit cannot be used to offset the emissions of more than one party.
The National Environment Agency (NEA), which oversees Singapore's carbon tax regulations, said on Monday (Aug 29) that it has signed agreements with Verra and Gold Standard, to pave the way for businesses here to offset their carbon tax bill."
Source: The Straits Times, last revised on 30 August 2022