Sustainability is gaining traction as a business move

SINGAPORE is now one of the first countries in Asia to introduce a carbon tax to reduce fossil fuel consumption and to use market pricing to develop a low-carbon economy.

The tax, in force from the start of this year, begins at a low rate of S$5 per tonne of greenhouse emissions. While Singapore made its first step, other countries struggle to implement such measures. For example, French President Emmanuel Macron's pledge to move towards higher carbon pricing sparked street protests in Paris. The proposal was withdrawn.

Introducing the tax early provides a clear signal on the path forward as the Singapore government will review the rate after 2023 to give companies time to adjust. While Singapore emits only some 0.11 per cent of global emissions, the move is a significant step forward on the country's commitment to take action on climate change.