Clause 13

In this Division —“allowance”, in relation to a taxable facility that is eligible for an allowance for an emissions year, means the amount by which the total amount of reckonable GHG emissions of the taxable facility in the emissions year may be reduced for the purpose only of determining the amount of the tax chargeable for the emissions year, in accordance with an award of allowances given by the Minister under section 20E;“public body” and “responsible Minister”, in relation to a public body, have the meanings given by section 2(1) of the Public Sector (Governance) Act 2018.(2) In this Division, a person is from the public sector if the person is a public officer or an employee of a public body.Application of this Division20B. This Division applies in relation to any emissions year in the period from and including 1 January 2024 up to and including such date as the Minister may prescribe under section 20F.Reduction of reckonable GHG emissions chargeable to tax20C. Despite section 16(3), where a taxable facility is eligible for any allowance for any emissions year, the amount of the tax chargeable under section 16(1) for that emissions year is calculated based on the formula (A – C) × B, where —

A and B have the meanings given by section 16(3)(a) and (b), respectively;

C is the allowance for the taxable facility for the emissions year; and

(A – C) is rounded up to the nearest metric tonne.Taxable facilities eligible for allowances20D.—

A taxable facility of a registered person is eligible for allowances if —

the registered person is in the business of making exports or making supplies to another person who is in the business of making exports, and the taxable facility is used in connection with that business of the registered person; and

the Minister determines that that business of the registered person is of sufficient economic or strategic importance to the growth, expansion, development or wellbeing of the Singapore economy, to justify an award of allowances for the taxable facility.(2) The Minister must notify the registered person of a taxable facility that is eligible for allowances of that fact, and grant the registered person an award of allowances for the taxable facility.Awards of allowances20E.—

The Minister must, in an award of allowances for any taxable facility, specify —

the emissions years in respect of which the taxable facility is entitled to allowances; and

the methodology by which the amount of allowance for each such emissions year is to be calculated.(2) In devising the methodology for any emissions year, the Minister may —

adopt or take into consideration any or any combination of the following sub‑paragraphs (including any part thereof):

the whole or any part (with or without modification) of any matter relevant to GHG emissions or intensity, or energy use or efficiency, including any internationally‑recognised benchmark;

any other matter that the Minister considers appropriate for the purpose of incentivising the continued reduction in the GHG emissions of the taxable facility; and

provide for a maximum amount of allowance for any emissions year, determined —

by prescribing that the tax chargeable for an emissions year (calculated based on the formula (A – C) × B in section 20C) must not, when divided by A for that emissions year, result in an amount that is less than the amount specified by the Minister in the award for this purpose; or

in any other manner that the Minister considers appropriate to incentivise the continued reduction in GHG emissions of the taxable facility.(3) For the purposes of subsection (2), the Minister may devise different methodologies for —

different taxable facilities;

different classes of taxable facilities; (c)different emissions years (including with respect to the same taxable facility); or

different circumstances.(4) The Minister may at any time, in respect of any emissions year for which a taxable facility is entitled to an allowance under an award of allowances, amend the award of allowances by —

modifying the methodology specified for the emissions year; or (b)substituting some other methodology for the emissions year,in any circumstances that the Minister thinks appropriate, including where the original methodology ceases to be internationally‑recognised, or ceases to be valid or applicable, or ceases to have or is reduced in its relevance, in relation to the registered person or the business for which the taxable facility is used.(5) The modified or substituted methodology must not be applied in respect of any emissions year for which the Agency has made an assessment of tax under Division 2 of Part 5, but may be so applied if the assessment is being revised under section 23.(6) The Minister must, in respect of each emissions year mentioned in subsection (1)(a), determine the amount of the allowance for that emissions year in accordance with the methodology mentioned in subsection (1)(b) for that emissions year. Regulations20F. The Minister may make regulations for any matter that is necessary, required or permitted to be prescribed to give effect to this Division, and the regulations may make different provisions for —

different persons or business facilities;

different classes of persons or business facilities; (c)different emissions years (including with respect to the same taxable facility); or

different circumstances.Assignment of function or power to public body20G.—

The Minister may assign any of his or her functions and powers under this Division to any public body.(2) Where the public body is not one for which the Minister is the responsible Minister, the Minister must consult the responsible Minister for the public body on the assignment.(3) An assignment under this section —

must be made by order in the Gazette;

may be general or limited;

may be subject to conditions that are consistent with the nature of the assigned function or power;

may be to 2 or more public bodies at the same time; and

does not prevent the Minister from carrying out or exercising the assigned function or power.(4) Upon an assignment being made under this section —

the public body, when carrying out the function or exercising the power assigned to it, is treated as carrying out a function or exercising a power conferred on the public body under the Act that establishes it; and

the public body must carry out the function or exercise the power assigned to it in accordance with any directions given by the Minister.(5) A member of the public body who is not from the public sector must not be involved in the carrying out of a function or the exercise of a power assigned to the public body.(6) The public body must not delegate a function or power assigned to it, to any of its members, or to any other person, who is not from the public sector.(7) Without affecting any obligation as to secrecy or other restriction against the disclosure of information imposed by any law or contract —

a member of the public body who is from the public sector; or

a person who has been delegated a function or power assigned to the public body,that receives or obtains any information for the purposes of this Division, must not disclose or provide access to such information to a member of the public body, or any other person, who is not from the public sector. (8) Subsection (7) does not apply to the following information:

information the disclosure of which has been approved by the Minister; (b)information relating to a person —

for which consent for disclosure has been obtained from the person; or (ii)that is already in the possession of the public body; (c)information that is publicly available.(9) The public body may carry out a function or exercise a power assigned to it despite the absence of a quorum at any meeting of the public body because of subsection (5) or (7), and the absence of a quorum does not affect the validity of anything done by the public body at the meeting.(10) This section does not permit the assignment of —

any power to make subsidiary legislation; and

the power of assignment in this section.”.