Statute Details
- Title: Carbon Pricing (Allowances — Assignment of Functions and Powers) Order 2023
- Act Code: CPA2018-S781-2023
- Legislation Type: Subsidiary legislation (Order)
- Authorising Act: Carbon Pricing Act 2018
- Authorising Provision: Section 20G(1) of the Carbon Pricing Act 2018
- Order Number: S 781
- Commencement: 1 January 2024
- Made Date: 29 November 2023
- Key Provisions: Sections 1 (Citation and commencement); 2 (Assignment of functions and powers)
- Primary Assignee: Economic Development Board (EDB)
- Scope of Assignment: Minister’s powers/functions under sections 20D and 20E of the Carbon Pricing Act 2018 (excluding any power mentioned in section 20G(10))
What Is This Legislation About?
The Carbon Pricing (Allowances — Assignment of Functions and Powers) Order 2023 is a Singapore legal instrument that reallocates certain decision-making and administrative powers from the Minister for Trade and Industry to the Economic Development Board (EDB). In practical terms, it clarifies that EDB is the body that can carry out specified functions relating to carbon pricing “allowances” under the Carbon Pricing Act 2018.
Singapore’s carbon pricing regime is designed to put a cost on greenhouse gas emissions, thereby encouraging emissions reductions and supporting decarbonisation. Within that regime, “allowances” are a central mechanism. The Act provides for determinations and awards of allowances, and it also sets out how those determinations and awards are administered. This Order does not create a new carbon pricing scheme; instead, it ensures that the operational and regulatory work connected to allowances can be performed by the appropriate agency.
Accordingly, the Order’s main purpose is governance and administrative efficiency: it assigns specified Ministerial powers and functions to EDB, while preserving the statutory limits set by the Carbon Pricing Act 2018—most notably, the exclusion of certain powers referenced in section 20G(10) of the Act.
What Are the Key Provisions?
Section 1 (Citation and commencement) is straightforward. It provides the formal name of the instrument and states that it comes into operation on 1 January 2024. For practitioners, commencement matters because it determines when the assignment takes effect and therefore when EDB’s authority to exercise the assigned powers begins.
Section 2 (Assignment of functions and powers) is the substantive provision. Section 2(1) provides that the Minister assigns to the Economic Development Board the powers and functions of the Minister under sections 20D and 20E of the Carbon Pricing Act 2018. This is a classic “delegation/assignment” structure in Singapore subsidiary legislation: the Minister retains the legal framework under the parent Act, but the day-to-day or operational authority is vested in another public body.
However, the assignment is not unlimited. Section 2(1) expressly states that it applies “but not any power mentioned in section 20G(10) of the Act.” This carve-out is legally significant. It signals that certain Ministerial powers—however they are defined in section 20G(10)—remain with the Minister and are not transferred to EDB. For lawyers advising regulated entities, this means that not every allowance-related decision is necessarily made by EDB; some decisions may still require Ministerial involvement depending on how section 20G(10) operates within the Act.
Section 2(2) further clarifies the operational reach of the assignment. It states that EDB may carry out or exercise an assigned function or power in relation to (i) a determination made under section 20D(1)(b) of the Act, or (ii) an award of allowances granted under section 20D(2) of the Act, “whether or not” the determination or award was made or granted by the Board.
This “whether or not” language is important. It prevents a technical argument that EDB can only act if it was the original decision-maker. Instead, EDB’s authority extends to subsequent steps connected to determinations and awards—such as administrative processing, implementation, or other functions that the Act assigns to the Minister under sections 20D and 20E. In other words, EDB’s powers can apply even where the initial determination/award was made by someone else (for example, if the statutory scheme permits Ministerial action in certain circumstances). This reduces procedural uncertainty and supports continuity in the allowance administration process.
How Is This Legislation Structured?
The Order is brief and consists of an Enacting Formula and two operative sections:
(1) Citation and commencement: identifies the instrument and when it takes effect.
(2) Assignment of functions and powers: sets out the transfer of Ministerial powers and functions to EDB, including the scope (sections 20D and 20E), the exclusion (section 20G(10)), and the operational clarification (EDB may act in relation to determinations/awards regardless of who made or granted them).
There are no additional Parts or detailed schedules in the extract provided. The Order’s legal effect is therefore concentrated in section 2, which should be read together with the referenced provisions in the Carbon Pricing Act 2018.
Who Does This Legislation Apply To?
This Order primarily applies to public authorities—specifically, the Minister for Trade and Industry (as the assignor of powers) and the Economic Development Board (as the assignee). It does not directly impose obligations on regulated entities in the way that substantive regulatory provisions might. Instead, it reallocates who has authority to perform certain functions under the Carbon Pricing Act.
That said, the practical impact is felt by carbon pricing participants—entities that interact with the allowances system (for example, through applications, determinations, or receipt of allowances). Because EDB is empowered to exercise assigned powers in relation to determinations and awards under section 20D, regulated entities should expect that EDB will be the relevant decision-making or administrative authority for many allowance-related matters from 1 January 2024, subject to the carve-out for powers in section 20G(10).
Why Is This Legislation Important?
Although the Order is short, it is legally and practically significant because it affects institutional competence—who can lawfully make or implement decisions under the carbon pricing allowances framework. In administrative law terms, correct identification of the decision-maker is crucial. If an authority acts without power, its actions may be challenged. By formally assigning powers under the parent Act, the Order strengthens the legal basis for EDB’s involvement and reduces the risk of jurisdictional defects.
For practitioners, the Order also matters for procedural strategy and regulatory engagement. When advising clients, lawyers typically need to know: (i) which agency will handle allowance determinations and awards; (ii) which agency will be the proper respondent in any administrative dispute; and (iii) which internal processes and timelines apply. This Order indicates that EDB is the principal body for exercising the Minister’s powers under sections 20D and 20E, at least to the extent not excluded by section 20G(10).
Finally, the “whether or not” clarification in section 2(2) helps ensure continuity and administrative practicality. In complex regulatory schemes, initial determinations may sometimes be made by one authority and subsequent implementation steps by another. The Order anticipates that reality and authorises EDB to act in relation to determinations and awards even if EDB was not the original maker. This reduces friction and supports consistent administration of allowances.
Related Legislation
- Carbon Pricing Act 2018 (including sections 20D, 20E, and 20G, particularly section 20G(1) and the carve-out in section 20G(10))
Source Documents
This article provides an overview of the Carbon Pricing (Allowances — Assignment of Functions and Powers) Order 2023 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.