READING between the lines of Singapore’s International Carbon Credit (ICC) framework suggests that voluntary carbon credits are probably going to cost more than predicted due to a near-term scarcity of eligible quality credits.

All companies should pay attention, even if they are not subject to Singapore’s carbon tax, and therefore will not have to buy ICC-eligible credits. The mounting urgency of climate action raises the likelihood that carbon prices will flow into all parts of the economy, and companies should start taking steps to decarbonise and minimise their need to pay for expensive credits down the road.

The special regime