Asia's Carbon Markets Strategic Imperatives for Corporations 2025

Operational carbon reduction roadmap FIGURE 8 Note: 1. MACC = marginal abatement cost curve. Source: Bain & Company analysis.— Align decarbonization targets with business strategy . — Analyse carbon market obligations, as well as carbon-r elative performance and competitiveness. — Diagnose operational and supply chain needs. — Identify and prioritize levers, based on tech br eakthr ough, pr ocess optimization and pr oduct innovation.— Establish emissions data, emissions reduction baseline and MR V system. — Manage carbon assets. — Establish MACC curve.1 — Leverage economic analysis informed by carbon price schemes.Baseline and data infrastructur e1 32 Baseline and data infrastructur e Decarbonization economic analysis4Carbon fact base and ambition Emissions reduction leversFour steps to arrive at an actionable, operational carbon reduction plan to maximize value creation, empowered by carbon markets Roadmap step #1: Carbon fact base and ambition Companies must align their science-based decarbonization targets with their business strategy, balancing regulatory compliance and competitive positioning. They must leverage policy insights, market signals (e.g. carbon pricing trends) and evidence-based analysis (e.g. peer benchmarking) to set clear, ambitious goals that reflect strategic priorities and market context, as illustrated in Figure 9. Companies should be aware of their emissions baseline and gradually reduce towards their industry cap to avoid the extra costs of non-compliance. Asia’s Carbon Markets: Strategic Imperatives for Corporations 25