On the heels of the UN announcement of a global carbon market, ASEAN countries have signed a Memorandum of Collaboration (MoC) at COP29.
Four countries and the ASEAN Alliance on Carbon Market (AACM) put pen to paper on the document which marks the first step in establishing a common set of guidelines and standards for a carbon market in the region.
Thailand’s Bangchak Corporation is one of the driving forces of the initiative and has been laying the foundation for regional carbon markets collaboration since 2021 when it established the Carbon Markets Club.
Mr. Chaiwat Kovavisarach, Group CEO of Bangchak Corporation and founder of the Carbon Markets Club, commented, “As Thailand’s pioneering private-sector initiative for reducing greenhouse gas emissions through carbon credit trading and raising climate action awareness, the Carbon Markets Club has grown from 11 founding members to 1,300 in just three years. By fostering collaboration and building a transparent, efficient carbon market, we support the ASEAN Common Carbon Framework and are committed to ensuring Southeast Asia’s efforts resonate globally.”
The four countries include Thailand, Malaysia, Indonesia, Singapore and confirm the region’s momentum when it comes to carbon credits. Last week Indonesia signed a.. with Japan and even though it represents a bilateral agreement between countries under Article 6.2, it is a sign of the growing demand and supply in the region.
Malaysia’s Minister of Natural Resources, Environment, and Climate Change, Mr. Nik Nazmi bin Nik Ahmad, said after the signing ceremony: “This historic collaboration is a crucial step in advancing carbon market growth within ASEAN. The ASEAN Common Carbon Framework will help operationalise the ASEAN Strategy for Carbon Neutrality. Through this partnership, ASEAN is positioned to play a leading role in global climate action, leveraging both technological and nature-based solutions to achieve a low-carbon economy.”
Read more: Malaysia to Implement Carbon Pricing and Explore Carbon Tax, Deputy Minister Says
