Singapore’s climate policy package of 2025 reshaped both the cost of capital and the licence to operate for investors and businesses. Beyond incremental compliance, 2025’s climate policy package – tighter disclosure timelines, a rising carbon tax, European Union / United Kingdom Carbon Border Adjustment Mechanism‑readiness work, scaled cross‑border power imports, operational Article 6 frameworks for carbon credits and sector measures such as the sustainable aviation fuel levy and data‑centre standards – rewired incentives and market architecture so that demonstrable decarbonisation, resilience and disclosure now determine access to markets, finance and capacity allocations.
In this article, we distil these formative developments on Singapore’s climate policy in 2025 and provide actionable recommendations for Singapore businesses and investors. This includes developments in the following areas:
• Policy direction: Firmer targets, clearer tools
• Climate risk management: From principle to operations
• Climate accountability: Corporate disclosure, assurance
• Carbon pricing: Carbon Border Adjustment Mechanism readiness
• Power system: Hydrogen-ready, efficiency obligations, cross-border renewable
• Coal exit: Transition credits, hard-to-abate technologies
• Sector lenses: Data centres, maritime & aviation
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