To prepare for these impending policy changes, global companies should actively consider incorporating internal carbon pricing (ICP) into their decision-making frameworks, says Amandeep Bedi, managing director, Southeast Asia at ENGIE Impact.
Carbon emissions have historically been treated as an unpriced externality, but many governments and sustainability frameworks are now encouraging — or even requiring — companies to include a price on their emissions.
Singapore became the first country in Asia to introduce a carbon tax in 2019, with companies that emit 25,000 tonnes of carbon dioxide equivalent (tCO2e) emissions or more in a year subject to a tax of $5/tCO2e. Singapore’s carbon tax rate will rise to $25/tCO2e in 2024 and $45/tCO2e from 2026.
