By collaborating with market enablers such as financial institutions, investors and international organizations, corporations can co-create carbon- related products or projects that allow them to capture opportunities from carbon markets beyond mere compliance. Equally, financial institutions should also play their part in advancing the “marketization” of carbon credits and carbon assets. As carbon markets and carbon price signals become mature, financial institutions may also consider incorporating carbon pricing into risk assessments. Examples of such innovative projects include those carried out by Standard Chartered (see Case Study 11), GenZero (see Case Study 12) and Mizuho (see Case Study 13). A successful decarbonization strategy relies on solid infrastructure and carbon management. This demands specialized expertise, such as emissions reduction planning and low-carbon investment strategies. However, many enterprises still lack standardized tools, actionable methodologies and skilled personnel, hindering their low- carbon transitions. In addition to its internal carbon market development, which is expected to cover 80 entities and approximately 30 million tCO2e in the first batch in 2025, China Southern Power Grid (CSG) has supported capacity building across the market. One key initiative is the co-investment of near-zero/zero- carbon demonstration zones, where CSG provides end- to-end services such as carbon inventories, emissions reductions and evaluation standards. By January 2025, 36 zones had been established across office buildings, data centres, industrial parks and other scenarios, with 25 certified as carbon neutral. CSG has compiled practical insights into toolkits that are publicly shared, enabling others to replicate successful models. CSG also contributes to talent development. As a certified training and competency evaluation base, it delivers professional training programmes on carbon accounting, emissions reduction and regulatory compliance. These efforts help build the human capital foundation necessary for the high-quality development of China’s carbon market.CASE STUDY 10 China Southern Power Grid – building carbon management capacity Source: expert interview with CSG. Asia’s Carbon Markets: Strategic Imperatives for Corporations 42

Asia's Carbon Markets Strategic Imperatives for Corporations 2025