Private Sector Perspectives on Carbon Pricing Instruments in ASEAN

Policy Report
Private Sector Perspectives on Carbon Pricing Instruments in ASEAN

Carbon pricing instruments (CPIs) are being developed at different rates and in different forms in ASEAN Member States. The CPI survey focused on six AMS—Indonesia, Malaysia, the Philippines, Singapore, Thailand and Viet Nam (hereafter referred as AMS-6). Taking into account the availability of facility-level MRV guidelines as well as the sectoral importance to respective NDCs, the CPI survey prioritised the energy, cement, iron and steel, petrochemical, automotive, palm oil and waste sectors.

After contextualising the NDCs and CPI development status of AMS-6, a set of six questionnaires was developed and these were distributed to about 100 recipients in a range of companies from mid-September to the end of October, 2021. A total of 31 respondents either sent written responses or undertook interviews with the project team within the same period. Subsequently, a private sector dialogue was organised on 23 November, 2021 to further solicit inputs from the survey recipients who had not responded and to validate preliminary findings and recommendations with the survey recipients.

Overall, respondents from the survey in AMS-6 are fully aware of the urgency of climate action and have undertaken a wide range of mitigation measures related to energy efficiency, renewable energy, nature-based solutions, and target setting and reporting of GHG emissions. The reaction of AMS-6 survey respondents to climate urgency is in line with the global trends in the climate regime, potentially emerging from the obligations arising from the Paris Agreement. The factors that have motivated survey respondents to take climate action include cost reduction, compliance with regulations, government incentives, corporate social responsibilities, and long-term mindset and vision.