Latest regulatory developments in selected Asian countries TABLE 2 Country/region Latest developments Impact on Scope 3 emissions China –National Emissions Trading Scheme (ETS) expanding to steel, cement and aluminium in 2025. –New Product Carbon Footprint standard (GB/T 24067–2024) effective from October 2024.Mandates detailed sector- and product-level accounting. Upstream carbon footprint data is becoming essential for trade and compliance. SingaporeCarbon tax rate: –SGD 25 (Singaporean dollars)/tonne (2024–25) –SGD 45/tonne (2026–27) –SGD 50–80/tonne by 2030.Stable carbon price improves returns on efficiency and green power, raising supplier expectations for data and renewable energy use. Indonesia –IDXCarbon exchange launched in 2023; opened to international access in January 2025. –Financial Services Authority rules are in place.Provides credit and financing tools for supply chains. Enables companies to purchase reductions to hedge against supply chain emissions. Viet Nam –Power purchase agreement (PPA) framework progressing, with pilots and regulatory updates under way. –Green Taxonomy in preparation; expected to guide green finance in coming years.Enables large users to procure green power directly. Clear green finance standards support overall supply chain alignment and emission reductions. Malaysia –Corporate Green Power Programme for virtual power purchase agreements. –Renewable energy certificate systems are operational.Provides verifiable pathways for reducing Scope 2 emissions, which is a key factor in lowering the carbon footprint of downstream products. Thailand –Thailand Voluntary Emission Reduction programme ongoing. –Direct power purchase agreement pilots advancing. –ETS legislation under development.Provides traceable green power for major energy consumers. Local carbon credits offer a supplementary option for supply chain emission reductions. EU (external) –CBAM currently in its transitional phase (2023–2025), requiring importers to report embedded emissions. –Full CBAM implementation, including financial obligations, will start in 2026.Directly targets imported goods emissions. Driving supply chain carbon management. In addition, proactively aligning with policies could bring further competitive edges for corporates when pilot innovative policy tools emerge. For example, the Chinese city of Changzhou, where some of the major renewable energy and manufacturing companies headquarter in, issued guidelines for companies to set up chief executives responsible for carbon neutrality portfolios to streamline internal governance. City of Changzhou: chief dual-carbon officers to mainstream enterprise decarbonization BOX 1 Changzhou, a major industrial hub in the Yangtze River Delta, launched a chief dual-carbon officer (CCO) guideline to embed carbon management into corporate governance. By 2025, listed and state-owned enterprises in priority sectors must appoint CCOs, expanding to all large firms by 2026. CCOs develop decarbonization strategies, monitoring, reporting and verification (MRV) systems, carbon footprint assessments, and promote low-carbon technologies. Supported by universities, research institutes and cross- department task forces, they also coordinate ESG efforts. The initiative strengthens executive-level accountability, standardizes carbon management and prepares firms for carbon markets, enhancing industrial competitiveness and climate governance. Source: Changzhou Municipal People’s Government. (2025, 8 July). Notice from the Municipal Government Office on the issuance of the implementation plan for the Chief Dual-Carbon Officer system in Changzhou (trial). https://www.changzhou.gov.cn/gi_news/587175256675299. Accelerating Value Chain Decarbonization for Corporate Growth: Perspectives from Asia 12

Accelerating Value Chain Decarbonization for Corporate Growth Perspectives from Asia 2025