Carbon markets in Asia are showing steady progress and Belém has seen the ASEAN Common Carbon Framework (ACCF) highlight a year of progress.
The ACCF, launched at COP29 through a Memorandum of Collaboration, aims to harmonize national carbon priorities with broader regional climate objectives while fostering high-integrity markets across Southeast Asia.
At panel, titled “Bridging National Priorities with Regional Goals,” was hosted at the ASEAN Pavilion by co-organizers from the Malaysia Carbon Market Association (MCMA), ASEAN Alliance on Carbon Markets (AACM), and Singapore Sustainable Finance Association (SSFA).
In his remarks, Dr. Renard Siew, Chair of the ACCF Steering Committee, emphasized the framework’s evolution: “In just one year, the ACCF has moved from concept to a structured work plan. Our aim is not to impose a single regime, but to define common principles and practical guardrails that can support each country’s pathway while building a more coherent regional market.”
The panel reviewed the ACCF’s work plan, structured around th three pillars ofSupply and Demand, Market Infrastructure, and Strategic Communications and Capacity Building, while also prioritizing cross-cutting initiatives like policy alignment and pilot projects.
Key challenges include avoiding market fragmentation and ensuring interoperable infrastructure, aligning with Article 6 of the Paris Agreement to build trust among investors, regulators, and communities.
Next steps
Looking ahead, the ACCF intends to broaden ASEAN participation, deepen engagement with regulators, pursue regional acknowledgment of its principles, and implement pilot transactions to test interoperability.
The potential for the region in terms of carbon market growth is massive according to a report that came out in 2024.
The initiative is one of many being touted during this year’s COP with Brazil announcing a partnership to bridge global carbon markets (supported by the EU, China and UK) and Singapore rallying countries like Kenya and the UK to an effort to grow carbon markets.
Read more: ASEAN Report Sees $3T Carbon Market Opportunity For Region
