The Opportunity for Carbon Markets in ASEAN

The report focuses on three carbon project types with significant potential for ASEAN – REDD+, blue carbon and biochar – outlining their mitigation potential and the economic opportunity available for ASEAN Member States in harnessing carbon markets to meet their emissions objectives.

It finds that, under the right conditions, carbon markets could unlock a cumulative revenue of $3tn for ASEAN by 2050 through the reduction or removal of emissions equivalent to 1.1 gigatonnes of CO2 per year.

The report concludes by providing policymakers with six considerations to help realise this significant opportunity:

• Develop carbon market regulation to provide policy clarity and create an attractive investment landscape
• Ensure the requisite institutional and technical capacity to create a robust carbon market
• Align standards around established best practice and allow for international standards to enable greater market access
• Develop robust domestic compliance schemes to create new and reliable demand for carbon projects
• Endorse and raise public awareness of voluntary carbon activity
• Formulate Article 6 processes to open new avenues for international demand