The International Court of Trade (ICT) has issued a landmark ruling underscoring that countries must take concrete steps to curb planet-warming emissions. The decision makes clear that nations – particularly those involved in fossil fuel production, consumption, and financing – can be held accountable for their contributions to climate change.
In parallel, the International Monetary Fund (IMF) has recommended that countries set a minimum carbon price of US$75 per ton of emissions as an effective mechanism to drive meaningful reductions. While the Paris Agreement allows countries discretion in determining their own climate targets and policies, the ICT ruling signals a stronger global push for accountability and consistent action.
For businesses, this evolving landscape means that climate-linked regulations, reporting obligations, and carbon-related costs are likely to become more prominent. Companies may face increased scrutiny of their financial and compliance practices, particularly those in industries with higher environmental impact.
For Singapore, which is both a global business hub and one of the world’s busiest ports, such developments have direct implications. As international trade partners adopt stricter climate measures, local companies – particularly SMEs that make up 99% of Singapore’s enterprises – may face higher compliance requirements, potential carbon-related costs, and growing expectations around sustainability reporting.
This means businesses here will need to strengthen their financial governance, compliance processes, and reporting practices to stay competitive in an evolving regulatory landscape.
At NS Global Consultants Pte. Ltd., we help SMEs and corporates stay prepared by offering corporate secretarial, bookkeeping, compilation, and tax services that ensure compliance while enabling informed decision-making. As climate policies tighten and carbon pricing becomes more widespread, having robust financial management and reporting systems will be key to navigating risks and seizing opportunities.
Get in touch with us to find out how we can support your business in navigating these global shifts while staying ahead locally.