Carbon Pricing Act 2018

Carbon Pricing Act 2018

2020 REVISED EDITION

This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021

An Act to require the reporting of, and the payment of a tax in relation to, greenhouse gas emissions.

[1 January 2019]

PART 1

PRELIMINARY

Short title

1.  This Act is the Carbon Pricing Act 2018.

General interpretation

2.—(1)  In this Act, unless the context otherwise requires —

“accredited external auditor” means any person accredited by the Agency as an accredited external auditor in accordance with regulations;

“Agency” means the National Environment Agency established by the National Environment Agency Act 2002;

“Appeal Panel” means an Appeal Panel mentioned in section 38;

“appellant” means any person that makes an appeal under Part 6 against a decision of the Agency;

“authorised officer” means an authorised officer appointed under section 6(2);

“carbon credit” means a fixed-price carbon credit or an eligible international carbon credit;

[Act 37 of 2022 wef 01/01/2024]

“carbon dioxide equivalence”, in relation to any greenhouse gas, means the mass of the greenhouse gas multiplied by its global warming potential set out opposite the greenhouse gas in the third column of the First Schedule;

“carbon price” means the value of a fixed-price carbon credit;

[Act 37 of 2022 wef 01/01/2024]

“electronic record” has the meaning given by the Electronic Transactions Act 2010;

“electronic transactions service” means any electronic transactions service provided for in regulations;

“eligible international carbon credit” has the meaning given by section 33A;

[Act 37 of 2022 wef 01/01/2024]

“emissions report” means an emissions report mentioned in section 11, and includes a verified emissions report;

“excluded GHG emission” means any GHG emission that is —

(a) a greenhouse gas specified in the first column of Part 3 of the Second Schedule; and

(b) emitted in the circumstances described in the second column of Part 3 of that Schedule opposite the greenhouse gas;

“first emissions threshold” means the first emissions threshold specified in Part 1 of the Second Schedule;

“fixed-price carbon credit” means a carbon credit mentioned in section 26;

[Act 37 of 2022 wef 01/01/2024]

“fixed-price carbon credit registry account” or “FPCC registry account” means a registry account for a taxable facility of a registered person that is opened by the Agency in the Fixed‑Price Carbon Credits Registry under section 31;

[Act 37 of 2022 wef 01/01/2024]

“GHG emission”, in relation to any business facility, means any greenhouse gas emitted into the atmosphere directly from the business facility;

“greenhouse gas” means any greenhouse gas specified in the first column of the First Schedule and having the chemical formula specified in the second column of that Schedule opposite the greenhouse gas;

“international carbon credit” means a certificate representing one tonne of GHG emissions reductions or removals measured in tCO₂e, generated from any project or programme outside Singapore;

[Act 37 of 2022 wef 01/01/2024]

“international carbon credit registry account” or “ICC registry account” means a registry account for a taxable facility of a registered person that is opened by the Agency in the International Carbon Credits Registry under section 33D;

[Act 37 of 2022 wef 01/01/2024]

“Minister” means —

(a) except as provided in paragraph (b), the Minister charged with the responsibility for sustainability and the environment; and

(b) for the purposes of Division 1A of Part 5, the Minister charged with the responsibility for trade and industry;

[Act 37 of 2022 wef 01/01/2024]

“monitoring plan” includes a monitoring plan that is revised under section 13(4), except in section 12(3)(a);

“non-reckonable GHG emission” means any GHG emission that is —

(a) a greenhouse gas specified in the first column of Part 2 of the Second Schedule; and

(b) emitted in the circumstances described in the second column of Part 2 of that Schedule opposite the greenhouse gas;

“public authority” means —

(a) an Organ of State or a public officer of the Organ of State;

(b) a ministry or department of the Government or a public officer of the ministry or department; or

(c) a public authority established under any public Act for a public purpose or an officer or an employee of the public authority;

“reckonable GHG emission” means any GHG emission other than a non-reckonable GHG emission;

“registered person” means a person registered under section 7;

[Deleted by Act 37 of 2022 wef 01/01/2024]

“regulations” means regulations made under section 76;

“reportable facility” means a business facility that is registered as a reportable facility under section 7;

“reporting period” means any period mentioned in section 11 as a reporting period;

“second emissions threshold” means the second emissions threshold specified in Part 1 of the Second Schedule;

“tax” means the carbon tax imposed under this Act;

“taxable facility” means a business facility that is registered as a taxable facility under section 7;

“tCO₂e” means metric tonnes of carbon dioxide equivalence;

“verified emissions report” means an emissions report verified under section 12.

(2)  In this Act —

(a) a reference to a business facility of a registered person is a reference to a business facility that is registered as a reportable facility or a taxable facility of the registered person, as the case may be;

(b) a reference to a reportable facility of a registered person is a reference to a business facility that is registered as a reportable facility of the registered person; and

(c) a reference to a taxable facility of a registered person is a reference to a business facility that is registered as a taxable facility of the registered person.

(3)  In this Act —

(a) a reference to a verified emissions report that is inaccurate includes a reference to a verified emissions report that is based on a monitoring plan that is inaccurate; and

(b) a reference to a monitoring plan that is inaccurate includes a reference to a monitoring plan that has not been revised under section 13(4) in the prescribed circumstances, as from any date as may be prescribed (not being a date earlier than the date of those prescribed circumstances).

Meaning of “business facility”

3.—(1)  A business facility is a single site at which any business activity is carried out.

(2)  In this Act, “business activity” means any activity or series of activities (including ancillary activities) —

(a) that involves the emission of greenhouse gas; and

(b) that forms a single undertaking or enterprise, having regard to any circumstances prescribed.

(3)  For the purpose of subsection (1), where a business activity is a series of activities that is carried out at more than one parcel of land, the business activity is treated for the purposes of this Act as carried out at a single site if the same person has operational control over the business activity, and —

(a) the parcels of land are contiguous, adjacent or adjoining, or separated only by any road or pathway (whether or not providing access to the business facility), or drain or waterway; or

(b) where paragraph (a) does not apply, there is a dependency between the activities carried out on the parcels of land, having regard to any circumstances prescribed.

(4)  A series of activities may be treated as forming a single undertaking or enterprise for the purpose of subsection (2)(b) even if —

(a) any one of the activities in the series is, or any 2 or more activities in the series are, capable of being carried out as a separate and distinct business activity; or

(b) the activities in the series are from more than one industry sector to which this Act applies.

(5)  To avoid doubt, there can be more than one business facility at any parcel of land for the purposes of this Act.

Meaning of “operational control”

4.—(1)  A person has operational control over a business facility if the person has the authority to introduce and implement, for the business activity carried out at the business facility (including a business activity that is carried out wholly or partly by a related party of the person), one or more of the following:

(a) operating policies;

(b) health and safety policies;

(c) environmental policies.

(2)  Only one person can have operational control over a business facility at any one time.

(3)  If more than one person satisfies subsection (1) at any one time, then the person that has the greatest authority to introduce and implement the policies mentioned in that subsection is taken for the purposes of this Act, to have operational control over the business facility.

PART 2

APPLICATION AND ADMINISTRATION

Application of Act

5.—(1)  This Act applies only to industry sectors prescribed.

(2)  Except as provided in subsection (3), this Act binds the Government.

(3)  Nothing in this Act renders the Government liable to prosecution for an offence under this Act.

(4)  To avoid doubt, a person is not immune from prosecution for any offence under this Act by reason only that the person is engaged to provide services to or on behalf of the Government.

Administration of Act

6.—(1)  The Agency is responsible for the administration and enforcement of this Act, subject to the general or special directions of the Minister.

(2)  The Agency may appoint, by name or office, any officer or employee of the Agency to be an authorised officer to carry out such function or duty, or exercise such power, conferred on an authorised officer under this Act, as the Agency may specify.

PART 3

REGISTRATION OF PERSONS AND BUSINESS FACILITIES

Obligation to apply to register as registered person, and to register business facility as reportable facility and taxable facility

7.—(1)  Where the total amount of reckonable GHG emissions of a business facility has a carbon dioxide equivalence that attains the first emissions threshold (or higher) in any year (called in this Part a trigger year), then the person mentioned in subsection (1A) must apply to the Agency —

(a) to be registered as a registered person;

(b) to register the business facility as a reportable facility of the registered person; and

(c) if the carbon dioxide equivalence of the total amount of reckonable GHG emissions from the business facility also attains the second emissions threshold (or higher) in the same trigger year, to register the business facility as a taxable facility of the registered person.

[Act 37 of 2022 wef 01/01/2024]

(1A)  The person for the purpose of subsection (1) is the person having operational control over the business facility on 31 December of the trigger year.

[Act 37 of 2022 wef 01/01/2024]

(2)  Subsection (1)(a) does not apply if —

(a) the person is already a registered person; or

(b) the business facility will cease to be under the operational control of the person by the time the person must make the application under section 8.

(3)  Subsection (1)(b) does not apply if the business facility is already registered as a reportable facility of the registered person.

(4)  Subsection (1)(c) does not apply if the business facility is already registered as a taxable facility of the registered person.

(5)  Without affecting subsection (1), where —

(a) a person (X) —

(i) is a registered person of a business facility that is a reportable facility, or both a reportable facility and a taxable facility; or

(ii) is not a registered person of a business facility but had operational control over the business facility on 31 December of a trigger year in relation to the business facility; and

(b) X transfers operational control over the business facility to another person (Y),

then Y must apply to the Agency —

(c) to be registered as a registered person; and

(d) to register the business facility as a reportable facility or as both a reportable facility and a taxable facility (as the case may be), of Y.

[Act 37 of 2022 wef 01/01/2024]

(6)  Subsection (5)(c) does not apply if Y is already a registered person.

[Act 37 of 2022 wef 01/01/2024]

(7)  To avoid doubt, a business facility may be registered as a reportable facility, or both a reportable facility and a taxable facility, of more than one registered person.

[Act 37 of 2022 wef 01/01/2024]

Applications for registration

8.—(1)  An application for a registration under section 7 must —

(a) be made —

(i) where section 7(1) applies — no later than 30 June of the year immediately after the trigger year; and

(ii) in the case of an application by Y under section 7(5) —

(A) if, in the year immediately before the year of the transfer, the total amount of reckonable GHG emissions from the business facility has a carbon dioxide equivalence that does not attain the second emissions threshold — no later than 30 June of the year immediately after the year of the transfer;

(B) if —

(BA) at the time X transfers operational control to Y, the business facility is not registered as a taxable facility of X; and

(BB) in the year immediately before the year of the transfer, the total amount of reckonable GHG emissions from the business facility has a carbon dioxide equivalence that attains the second emissions threshold (or higher),

no later than the later of the following:

(BC) 30 June of the year of the transfer;

(BD) 30 days after the date of the transfer; and

(C) if, at the time X transfers operational control to Y, the business facility is registered as a taxable facility of X — no later than 30 days after the date of the transfer;

[Act 37 of 2022 wef 01/01/2024]

(b) identify the person and the business facility in question;

(c) contain any information prescribed by regulations for assessing applications made under this section, and any other information required by the Agency to assess the particular application; and

(d) be in the form and manner required by the Agency.

(2)  Upon an application being made under this section, the Agency must register the person as a registered person, and the business facility as a reportable facility or taxable facility of the registered person (as the case may be), unless the application is incomplete or not made in accordance with subsection (1).

(3)  To avoid doubt, the Agency may treat an application to register a business facility as a taxable facility as also an application to register the business facility as a reportable facility, if the business facility is not already registered as a reportable facility.

(4)  A registration under this section is in force as follows:

(a) subject to paragraph (b), starting on 1 January of the year immediately after the trigger year for the registration, until deregistration under section 10;

(b) for a registration pursuant to section 7(5), starting on the date of the transfer of operational control, until deregistration under section 10.

[Act 37 of 2022 wef 01/01/2024]

Entitlement to apply to deregister as taxable facility, reportable facility, and as registered person, etc.

9.—(1)  A registered person may apply to the Agency to deregister a business facility as a taxable facility of the registered person if —

(a) the registered person ceases to have operational control over the business facility;

(aa) the registered person has operational control over the business facility but has ceased to operate the business facility and has no intention of resuming its business activity within the next 36 months after such cessation;

[Act 37 of 2022 wef 01/01/2024]

(b) the total amount of reckonable GHG emissions from the business facility has a carbon dioxide equivalence that does not attain the second emissions threshold for each of 3 consecutive years; or

(c) where any modification (including by way of additions and removals) to any work process at the business facility, or to any building or infrastructure of the business facility, is completed and —

(i) the total amount of reckonable GHG emissions from the business facility in the year in which the modification is completed has a carbon dioxide equivalence that does not attain the second emissions threshold; and

(ii) the total amount of reckonable GHG emissions from the business facility has a carbon dioxide equivalence that is unlikely to attain the second emissions threshold in each of the 2 consecutive years immediately following.

(2)  Without affecting subsection (1)(a), a registered person must give the Agency advance written notice of the date that the operational control that the person has over the business facility is to cease, at least 45 days before that date.

(3)  A registered person may apply to the Agency to deregister a business facility as a reportable facility of the registered person if —

(a) the registered person ceases to have operational control over the business facility;

(aa) the registered person has operational control over the business facility but has ceased to operate the business facility and has no intention of resuming its business activity within the next 36 months after such cessation;

[Act 37 of 2022 wef 01/01/2024]

(b) the total amount of reckonable GHG emissions from the business facility has a carbon dioxide equivalence that does not attain the first emissions threshold for each of 3 consecutive years; or

(c) where any modification (including by way of additions and removals) to any work process at the business facility, or to any building or infrastructure of the business facility, is completed and —

(i) the total amount of reckonable GHG emissions from the business facility in the year in which the modification is completed has a carbon dioxide equivalence that does not attain the first emissions threshold; and

(ii) the total amount of reckonable GHG emissions from the business facility has a carbon dioxide equivalence that is unlikely to attain the first emissions threshold in each of the 2 consecutive years immediately following.

(4)  A registered person may apply to the Agency to deregister as such if there is no longer any business facility registered as a reportable facility of the registered person.

(5)  The Agency may, on its own volition, deregister any registered person as such, and any business facility registered as a reportable facility or taxable facility of the person as such, if the Agency is satisfied that the person has been wound up or dissolved or has otherwise ceased to exist.

[Act 37 of 2022 wef 01/01/2024]

Applications to deregister

10.—(1)  An application for deregistration under section 9 must —

(a) identify the registered person and the business facility in question;

(b) contain any information prescribed by regulations for assessing applications made under this section, and any other information required by the Agency to assess the particular application; and

(c) be in the form and manner required by the Agency.

(2)  The Agency may refuse to accept any application that is incomplete or not made in accordance with subsection (1).

(3)  To avoid doubt, a deregistration of a business facility as a taxable facility or reportable facility of a registered person does not affect any obligation or liability that the registered person acquired or incurred, or that accrued to the registered person, under this Act in relation to the taxable facility or reportable facility (as the case may be) before the deregistration as such.

(4)  Except where section 9(5) applies, the Agency must not deregister a registered person as such if the registered person has not discharged all obligations and liabilities under this Act (whether under Part 4 or 5 or otherwise) that the person acquired or incurred, or that accrued to the person, in relation to a taxable facility or reportable facility of the person as a registered person.

[Act 37 of 2022 wef 01/01/2024]

PART 4

GHG EMISSIONS REPORTING REQUIREMENTS

Division 1 — Emissions reporting

Emissions reports

11.—(1)  Where a registered person has for any part of a year operational control over a business facility that is a reportable facility of the registered person, the registered person must submit to the Agency for the Agency’s approval, an emissions report for that business facility for that year (year R).

[Act 37 of 2022 wef 01/01/2024]

(2)  The emissions report must set out the GHG emissions (other than excluded GHG emissions) of the business facility for the reporting period for year R.

[Act 37 of 2022 wef 01/01/2024]

(2A)  For the purposes of subsection (2), the reporting period for year R is the whole or the part of year R (as the case may be) for which the business facility is under the operational control of the registered person.

[Act 37 of 2022 wef 01/01/2024]

(2B)  To avoid doubt, where operational control over a business facility is transferred one or more times in a year, there is for that year a reporting period for the business facility as a reportable facility of each registered person having operational control over the business facility in that year.

[Act 37 of 2022 wef 01/01/2024]

(2C)  Where operational control over a business facility is transferred to a person (Y) in any year, Y may, with the approval of the Agency, treat the reporting period for that year for the business facility as a reportable facility of Y, as including the reporting period or reporting periods for that year for the business facility as a reportable facility of one or more persons having operational control over the business facility before Y (each X) in that year.

[Act 37 of 2022 wef 01/01/2024]

(2D)  Where the Agency has approved the treatment mentioned in subsection (2C), subsection (1) applies to Y instead of X in relation to any reporting period treated as the reporting period for the year for the business facility as a reportable facility of Y.

[Act 37 of 2022 wef 01/01/2024]

(3)  To avoid doubt, the obligation to submit an emissions report in accordance with this Part arises at the end of the reporting period for which the emissions report must be submitted.

Emissions reports required to be verified

12.—(1)  Subject to subsection (3), where the business facility is a taxable facility of a registered person, an emissions report mentioned in section 11 for the business facility must —

(a) be prepared based on a monitoring plan specified in section 13(1);

(b) subject to subsection (2), be verified by an accredited external auditor; and

(c) when the emissions report is submitted under section 11 to the Agency for the Agency’s approval, be accompanied by a report by the accredited external auditor of its verification.

(2)  The emissions report in subsection (1) need not be verified by the accredited external auditor insofar as it relates to any non‑reckonable GHG emission of the business facility.

(3)  The emissions report in subsection (1) need not be verified insofar as it relates to any reporting period, or any part of a reporting period, that falls —

(a) before the approval of the Agency under section 13 for the monitoring plan; or

(b) after the deregistration of the business facility as a taxable facility of the registered person.

Monitoring plans

13.—(1)  For the purpose of section 12(1)(a), the monitoring plan for a business facility that is a taxable facility of a registered person must —

(a) set out the basis on which the registered person ensures the quality of the data required for the computations necessary for an emissions report for the business facility; and

(b) be submitted to and approved by the Agency.

(2)  Before granting an approval under subsection (1)(b), the Agency may, in any of the following circumstances, in writing direct the registered person to have its monitoring plan first assessed by an external auditor:

(a) the Agency considers that specialised technical knowledge is required to assess any process at the business facility;

(b) the Agency disagrees with the registered person on any matter set out in the monitoring plan,

and the registered person must comply with the direction.

(3)  Where subsection (2) applies, the registered person must submit to the Agency, within the time specified in the direction under that subsection, the report by the external auditor containing the external auditor’s assessment.

(4)  The registered person must, in the prescribed circumstances, revise a monitoring plan approved by the Agency.

(5)  Where the Agency approves any monitoring plan (including one rectified or recomputed under section 14(1) or 15(2)), the Agency must specify the date (whether a date before, on or after the date on which the approval is actually granted) from which the monitoring plan has effect for the purposes of section 12(1)(a).

(5A)  Where the circumstances described in section 7(5) apply and X has a monitoring plan for the business facility as a taxable facility of X that is approved by the Agency under this section —

(a) the Agency must provide Y with the monitoring plan; and

(b) the monitoring plan —

(i) is treated for the purposes of subsection (1) as if it had been submitted to the Agency and approved by the Agency as a monitoring plan for the business facility as a taxable facility of Y, from and including the date of the transfer of operational control over the business facility from X to Y; and

(ii) is treated for the purposes of section 15 as if it had been prepared by Y.

[Act 37 of 2022 wef 01/01/2024]

(5B)  Nothing in subsection (5A) prevents the monitoring plan (as on the day immediately before the date of the transfer of operational control) from continuing to be a monitoring plan for the business facility as a taxable facility of X for the purpose of X complying with any of X’s obligations under this section and sections 12, 14 and 15.

[Act 37 of 2022 wef 01/01/2024]

(6)  Any approval or deemed approval under this section for a monitoring plan for a taxable facility of a registered person ceases to be valid in relation to that registered person with effect from the deregistration of that taxable facility as such.

[Act 37 of 2022 wef 01/01/2024]

Division 2 — Inaccurate, etc., emissions reports and monitoring plans, etc.

Inaccuracies, etc., in emissions reports and monitoring plans, etc., identified by Agency

14.—(1)  The Agency may, in respect of any incomplete or inaccurate emissions report or monitoring plan, in writing direct the registered person to do all of the following, within the time period specified in the direction or a longer time as the Agency may allow in any particular case:

(a) carry out any rectification or recomputation as the Agency may require;

(b) resubmit the report or plan for the Agency’s approval,

and the registered person must comply with the direction.

(2)  The Agency may, in respect of —

(a) any verification of an emissions report by an accredited external auditor; or

(b) any report by an accredited external auditor of a verification in paragraph (a),

that does not comply with any requirement imposed under this Act, in writing direct the registered person submitting the emissions report to have the emissions report re‑verified by the accredited external auditor or the report of the accredited external auditor rectified, or both, within the time period specified in the direction or a longer time as the Agency may allow in any particular case; and the registered person must comply with the direction.

(3)  The Agency may, in respect of —

(a) any assessment of a monitoring plan by an external auditor; or

(b) any report by an external auditor of an assessment in paragraph (a),

that does not comply with any requirement imposed under this Act, in writing direct the registered person submitting the monitoring plan to have the monitoring plan re‑assessed or the report of the external auditor rectified, or both, within the time period specified in the direction or a longer time as the Agency may allow in any particular case; and the registered person must comply with the direction.

Inaccuracies, etc., in emissions reports and monitoring plans identified by registered person

15.—(1)  Where a registered person discovers any error or omission in any emissions report or monitoring plan prepared by the registered person (whether or not already approved by the Agency), the registered person must notify the Agency of the error or omission within 7 working days after the discovery and provide the following in the notification:

(a) a description of —

(i) the error or omission, and the correction that is to be made or, where applicable, that has been made; and

(ii) the circumstances that led to the error or omission;

(b) where applicable, the GHG emissions of the business facility of the registered person to which the emissions report relates, and their respective amounts, represented by the error or omission.

(2)  Upon receipt of a notification under subsection (1), the Agency may in writing direct the registered person to resubmit for the Agency’s approval, within the period specified in the direction or a longer time as the Agency may allow in any particular case, a rectified or recomputed emissions report or monitoring plan that incorporates corrections specified by the Agency in the direction; and the registered person must comply with the direction.

(3)  The Agency may, in the direction under subsection (2), also require, as the case may be —

(a) the rectified or recomputed emissions report to be verified by an accredited external auditor; or

(b) the rectified or recomputed monitoring plan to be assessed by an external auditor,

and for the registered person to submit a report of the verification by the accredited external auditor, or the assessment by the external auditor to the Agency, together with the rectified or recomputed emissions report or monitoring plan.