Asia's Carbon Markets Strategic Imperatives for Corporations 2025

Established pricing schemes1.3 Developed Asian economies – pioneers in robust carbon pricing Apart from China, other developed Asian economies such as Japan, South Korea and Singapore are taking significant steps to develop both regional and global carbon markets (see Figure 6 and Table 2). They have long been pioneers in implementing robust carbon pricing schemes, serving as powerful catalysts in their carbon strategies. They are now embarking on the path towards absolute carbon reduction, guided by their respective NDCs. Carbon pricing schemes in developed Asian economies (end-2024) FIGURE 6 Notes: 1. Share (%) of the jurisdiction’s GHG emissions covered under the ETS. 2. Share (%) of allowances that have been offered for auction in the primary market. 3. Share (%) of a compliance entity’s obligations that can be met using approved offsets. 4. C&T = cap and trade. 5. Quantitative limits apply for “outside Tokyo” credits. Source: International Carbon Action Partnership.29 Coverage (%)1Tokyo C&T4 Carbon price ($ per tCO2e) Auction share (%)2 Maximum allowed offset limit (%)3Start of operation 60% 4 sectors $13 0% 5%China national ETS 40% 4 sectors $70 57% 0%European Union ETSUK ETS 27% 4 sectors $48 75% 0%2021Indonesia economic value of CTS 100%$1N/A 1 sector N/A2023 2005South Korea K-ETS 79% 7 sectors $6.80 10%+ 10%2015 19% 2 sectors $4 0% 100%52010Singapor e carbon tax 80% 4 sectors $19.50 5%2019 2021 N/A Asia’s Carbon Markets: Strategic Imperatives for Corporations 16