Medtech firms may face higher costs if they fail to address environmental impacts

Singapore seeks to raise the carbon offset price to $33/tCO2e in 2026 - 2027.

Consultancy firm, Bain, warned that if medtech firms do not act on their ESG strategies in the next five to 10 years, they may face increased costs.

In a study evaluating ESG plans of companies and customers in the medtech sector, Bain said “there is a growing acknowledgement within the medtech community about the need to address these environmental challenges collaboratively.” 

Some higher costs that medtech firms may face are in Singapore, China, and South Korea. Singapore will impose a hike in the carbon offset price to $33/tCO2e in 2026–27, reaching $59/tCO2e by 2030.

Similarly, China and South Korea could experience carbon price increases of around 34% and 25%, respectively, by 2030. 

India’s carbon prices are also expected to reach $80/tCO2e17 by 2050 with the introduction of a
carbon market.

Other Asia-Pacific countries, including Vietnam, are also studying to create carbon trading mechanisms to monetise GHG emissions reductions.