The Carbon Market Institute today released its International Carbon Market Update with a focus on the Asia Pacific region. It provides an overview of carbon pricing and market trends.
“Carbon markets have gained momentum across the Asia Pacific over the last year,” said John Connor,” CEO Carbon Market Institute.
“There are 17 national or sub-national carbon pricing instruments in the region with 3 emissions trading systems under development and a further 5 being considered. Carbon schemes have generated a total of US$4.35 billion in Asia since their respective commencement.”
“This trend is expected to accelerate in the coming years particularly in export-driven economies across the region, as the effects of the EU and potentially other carbon border adjustment mechanisms are felt,” Connor added.
Indonesia, Vietnam, Thailand, India, and Japan are all transitioning towards a compliance emissions trading scheme, or a hybrid system that incorporates voluntary and compliance elements. Singapore stands out as the only country in the region to have implemented a rising carbon tax that increased from SGD$5 (AUD$ 5.55) to SGD$25 in 2024, aiming to reach SGD$50-80 by 2030.
“There are multiple carbon exchanges emerging in Asia, but low market liquidity and limited price discovery may restrict the impact of price signals on investment and operational decisions.”
“As market-based frameworks mature, the Asia Pacific region is ripe for collaboration and investment across borders to accelerate climate action and support the global transition to net zero emissions,” said Connor.
“With climate change a key priority for ASEAN member states, further market standardisation and alignment across the region will also play an increasingly important role. Regional initiatives such as Malaysia’s recent call for a regional carbon standard should be carefully considered,” Connor added.
The update is released in the lead up to the 2024 Singapore Carbon Market & Investor Forum, held across 15-16 August. The Carbon Market Institute is bringing together business leaders to discuss opportunities for investment and collaboration in the region’s rapidly developing carbon markets.
The Forum will convene government, policy and business leaders from across the Asia-Pacific region alongside market experts to consider the challenges and opportunities to scale investment in decarbonisation and nature positive solutions, alongside macro examples of best practice. Of particular focus will be the policy and market frameworks necessary to facilitate financial flows into environmental solutions at scale.
The program features speakers representing the Australian High Commission, British High Commission, Monetary Authority of Singapore, Singaporean Ministry of Trade & Industry, Singapore Prime Minister’s Office, AirCarbon Exchange, ASEAN Centre for Energy, Bain & Co., BlackRock, Business for Nature, GenZero, International Emissions Trading Association, International Finance Corporation, Singapore Green Finance Centre, Verra and the World Economic Forum.
Full program and further information on the Singapore Carbon Market & Investor Forum can be found here.
In June, the Carbon Market Institute published a policy brief on a national carbon market strategy for Australia, that contemplates international linkages including in the Asia-Pacific region, to contribute to global climate action. Available here
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About the Carbon Market Institute: CMI is an independent member-based institute that promotes best practice in market-based solutions and decarbonisation investment to help limit warming to 1.5ºC. CMI’s around 150 strong membership includes organisations from across the economy, in Australia and the Asia Pacific region. CMI also administers the Australian Carbon Industry Code of Conduct, which was established in 2018 to promote and steward consumer protection and market integrity. The CMI Board updates CMI’s Policy Positions annually, which draw on practical insights from—but are ultimately independent of—members.
Media contact:
Marion Demann, CMI Communications Director, marion.demann@carbonmarketinstitute.org or 0416625678
