Singapore's International Carbon Credit (ICC) Framework
Carbon tax-liable facilities can offset up to 5% of taxable emissions using eligible International Carbon Credits (ICCs). Find out what criteria ICCs must meet to qualify.
Last updated 3 August 2026
International Carbon Credits (ICCs) used must comply with Singapore’s Eligibility Criteria
Under the Carbon Pricing (Amendment) Act 2022 (CPA), carbon tax-liable facilities can use eligible ICCs to offset up to 5% of their taxable emissions from 1 Jan 2024. ICCs must meet Singapore’s Eligibility Criteria.
The Eligibility Criteria for ICCs is prescribed in the Carbon Pricing (Carbon Tax and Carbon Credits Registry) (Amendment) Regulations 2023, and is summarised in the table below.
Singapore's ICC Eligibility Criteria and Definitions
Principle | Definition |
|---|---|
To comply with Article 6 of the Paris Agreement, the certified emissions reductions or removals must have occurred between 1 January 2021 and 31 December 2030. | |
Not double-counted | The certified emissions reductions or removals must not be counted more than once in contravention of the Paris Agreement. |
Additional | The certified emissions reductions or removals must exceed any emissions reduction or removals required by any law or regulatory requirement of the host country, and that would otherwise have occurred in a conservative, business-as-usual scenario. |
Real | The certified emissions reductions or removals must have been quantified based on a realistic, defensible, and conservative estimate of the amount of emissions that would have occurred in a business-as-usual scenario, assuming the project or programme that generated the certified emission reductions or removals had not been carried out. |
Quantified and verified | The certified emissions reductions or removals must have been calculated in a manner that is conservative and transparent, and must have been measured and verified by an accredited and independent third-party verification entity before the ICC was issued. |
Permanent | The certified emissions reductions or removals must not be reversible, or if there is a risk that the certified emissions reductions or removals may be reversible, there must be measures in place to monitor, mitigate and compensate any material reversal of the certified emissions reductions or removals. |
No net harm | The project or programme that generated the certified emissions reductions or removals must not violate any applicable laws, regulatory requirements, or international obligations of the host country. |
No leakage | The project or programme that generated the certified emissions reductions or removals must not result in a material increase in emissions elsewhere, or if there is a risk of a material increase in emissions elsewhere, there must be measures in place to monitor, mitigate and compensate any such material increase in emissions. |
Information on the process of surrendering eligible ICCs for the payment of carbon tax can be found in the ICC Guidance Document [PDF, 4.23 MB] (opens in new tab).
NEA conducts engagement sessions to update Taxable Facilities on Singapore’s ICC Framework. Past materials are available for perusal below.