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Singapore's Budget 2026 addresses the rising carbon tax, set to reach $45 per tonne in 2026 and potentially $50-$80 by 2030. To mitigate the financial burden on businesses, the government introduced measures including the extension of the Energy Efficiency Grant (EEG) and green loans, allowing firms to invest in low-carbon technologies.

A corporate income tax rebate of up to $30,000 for FY2026 aims to enhance cash flow amidst rising costs. The budget also supports emissions-intensive sectors through international carbon credits. These initiatives are designed to cushion the impact of carbon pricing while promoting decarbonisation efforts across industries.