Asia's Carbon Markets Strategic Imperatives for Corporations 2025

Carbon markets act as strategic enablers rather than distractions, complementing direct decarbonization efforts. For example, China National Building Material Group (CNBM) uses carbon price signals to optimize emissions reduction investments (see Case Study 1), while Baofeng Energy’s green hydrogen projects achieve both emissions cuts and business growth (see Case Study 8). The combination of rising carbon prices – for example, China’s ETS climbing from RMB 46 per tonne in 2021 to over RMB 100 per tonne in 2024 – and diversified credit portfolios – such as blending low-cost nature-based solutions (NbS) with high-investment CCUS – demonstrates meaningful benefits. Corporations can strengthen credibility via transparent MRV systems and active participation in standard-setting, turning scepticism into momentum for systemic change.Strategic corporate imperatives for carbon market engagement FIGURE 7 Source: Bain & Company analysis. By understanding carbon markets, businesses can revamp decarbonization plans, drive enterprise- wide innovation and secure a competitive edge in the low-carbon transition. 2 1 Actively build ecosystems − to unlock the full potential of carbon markets 32A 2B 2C 2D1A 1B 1COver come challenges on net-zer o journey − by engaging with carbon marketsCaptur e new business growth opportunities − empower ed by carbon markets Value chain decarbonization, under the impact of carbon marketsProven low-carbon technologies and solutions (incl. carbon removals) Carbon cr edit portfolio strategy , by leveraging carbon marketsData and digital technology opportunitiesOptimized operational emissions reduction, empower ed by carbon markets Green service champions Technologies of the futur eAn integrated appr oach that leverages carbon markets to futur e- proof business strategy and accelerate gr een transformation Asia’s Carbon Markets: Strategic Imperatives for Corporations 23