Actively build ecosystems – to unlock the full potential of carbon markets Achieving success in this dynamic and evolving carbon market demands more than individual effort. A vibrant ecosystem, underpinned by diverse stakeholders, is crucial to drive innovation, enhance resilience and expand opportunities for all participants. Given the fragmented nature of Asian markets, developing such an ecosystem requires time and coordinated action, which must begin now. Corporations should collaborate with more stakeholders to build a cross-disciplinary ecosystem. A robust carbon market should involve direct participants, market enablers, regulators/ policy-makers, standard setters and convening platforms. Corporations should join or even lead this collaboration to transform compliance-driven carbon markets to value-driven ones. While policy-makers lead carbon market regulation, corporations can significantly influence policy by sharing sector insights and data, establishing a feedback loop of “implementation review–dynamic rule adjustment.” As discussed earlier, advancing carbon markets’ frameworks and liquidity requires policy synergies that call for constructive feedback from corporations. Innovation in technical standards, particularly for voluntary markets, is another area where corporations can support and even take the lead. They should collaborate with standard setters to develop niche standards and engage with convening platforms to enhance influence and promote global adoption. In Alibaba’s case (see Case Study 9), partnerships are expected to improve not only its own carbon management but also support the global carbon neutrality agenda; meanwhile, China Southern Power Grid (CSG) supports carbon management capacity building across the market (see Case Study 10).Imperative 3 Corporations should join or even lead this collaboration to transform compliance-driven carbon markets to value-driven ones. Alibaba Group, a leader in technology and e-commerce, is promoting international collaboration by working with other large enterprises to set standards, frameworks and methodologies for emissions avoidance, while promoting its Scope 3+ concept to a broader ecosystem. Together with other tech giants, Alibaba has been working on setting the emissions removal framework and methodologies for avoided emissions and developing international accounting standards. This initiative reinforces Alibaba’s sustainability commitment, enhances connectivity between China’s carbon market and global systems, and supports the global carbon neutrality agenda. Scope 3+, a new concept promoted by Alibaba, refers to GHG emissions from all participants in a company’s ecosystem beyond direct value chain partners. Scope 3+ reflects the potential to enable and engage a wider group of stakeholders to promote low-carbon products through its digital technology and platforms.CASE STUDY 9 Alibaba Group – fostering multistakeholder collaboration Source: expert interview with Alibaba Group. Asia’s Carbon Markets: Strategic Imperatives for Corporations 41

Asia's Carbon Markets Strategic Imperatives for Corporations 2025