ICJ's climate ruling may spur scrutiny of Singapore carbon tax, action plans of companies

This is given Singapore's status as a finance and petrochemical hub

- Shabana Begum

The world's top court on July 23 issued a landmark ruling making it clear that countries must curb their planet-warming emissions. Those who do not are liable to pay damages even if they are not party to the Paris Agreement—the world's climate pact—the International Court of Justice (ICJ) said in the 140-page document.

The Straits Times unpacks the key thrusts of the advisory opinion and what they could mean for Singapore and South-east Asia.

HOW EFFECTIVE ARE THE ICJ ADVISORY OPINIONS IN SPURRING CHANGE?

While non-binding, previous advisory opinions by the ICJ have led to change.

This has sparked hope among climate observers that the latest advisory opinion could refocus global attention on the urgency of tackling climate change, especially in the current geopolitical climate, which is not conducive to environmental action.

"Amid turmoil in geopolitics and economic uncertainties, the court has reaffirmed the obligation of states to also protect the environment," said former Singapore climate negotiator Rueban Manokara, who is now with conservation group World Wide Fund for Nature (WWF).

One example of an ICJ ruling that had a tangible impact is when the court issued an advisory opinion on the Chagos Islands in 2019. The sovereignty of the archipelago in the Indian Ocean had been disputed by Britain and Mauritius, a former British colony.

The court found that Britain's claims on the islands were wrongful, preventing Mauritius from being fully independent.

This prompted Britain to enter into negotiations with Mauritius, leading to an agreement in May 2025, when Britain signed a deal to hand the Chagos Islands to Mauritius, said the Singapore front of the World's Youth for Climate Justice (WYCJ).