Asia's Carbon Markets Strategic Imperatives for Corporations 2025

20. Sources: – Ministry of Ecology and Environment of the People’s Republic of China. (2024). Progress Report of China’s National Carbon Market. https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528850763859.pdf. – International Energy Agency. (2021). Net Zero by 2050: A Roadmap for the Global Energy Sector. https://iea.blob.core.windows.net/assets/deebef5d-0c34-4539-9d0c-10b13d840027/NetZeroby2050- ARoadmapfortheGlobalEnergySector_CORR.pdf. 21. Auction-based emissions permits are a market-based mechanism for controlling GHG emissions within a cap-and- trade compliance scheme. Typically, governments set a limit or “cap” on the total amount of emissions allowed for a specific sector or region. Then instead of giving permits away, governments auction them off to companies that need them to operate legally. The price of these permits is determined by market forces at the auction. These permits grant the holder the right to emit a certain amount of GHG. Auctions tend to allocate permits to companies that can reduce emissions at the lowest cost, making the overall effort to curb emissions more cost-effective. The approach aims to incentivize innovation in emissions reductions and generate revenue for governments, while ensuring a more efficient and transparent allocation of pollution rights. 22. The State Council of the People’s Republic of China (PRC). (2024). Interim Regulations for the Administration of Carbon Emissions Trading. https://www.gov.cn/zhengce/content/202402/content_6930137.htm. 23. Sources: – ClearBlue Markets. (2025). China’s Carbon Market: The Evolution, Challenges, and Opportunities. https://www.clearbluemarkets.com/knowledge-base/chinas-carbon-market-the-evolution-challenges-and-opportunities . – Expert consensus view that the probability of carbon price in China reaching RMB 200-300 ($28 -42) by 2030 is high 24. Sources: – Ministry of Ecology and Environment of the People’s Republic of China. (2024). Progress Report of China’s National Carbon Market (2024). https://www.mee.gov.cn/ywdt/xwfb/202407/W020240722528850763859.pdf. – ClearBlue Markets. (2025). China’s Carbon Market: The Evolution, Challenges, and Opportunities. https://www.clearbluemarkets.com/knowledge-base/chinas-carbon-market-the-evolution-challenges-and-opportunities . – International Energy Agency. (2021). Net Zero by 2050: A Roadmap for the Global Energy Sector. https://iea.blob.core.windows.net/assets/deebef5d-0c34-4539-9d0c-10b13d840027/NetZeroby2050- ARoadmapfortheGlobalEnergySector_CORR.pdf. – Expert consensus view that the probability of carbon price in China reaching RMB 200/tonne ($28) by 2030 is high. 25. Xinhua News Agency. (2025). China’s National Voluntary GHG Emission Reduction Trading: One-Month Analysis. https://www.gov.cn/yaowen/liebiao/202504/content_7017803.htm. 26. Ministry of Ecology and Environment of the People’s Republic of China. (2025, 25 March). Letter on Public Solicitation of Suggestions for Methodologies of Voluntary Greenhouse Gas Emission Reduction Projects. https://www.mee.gov.cn/ xxgk2018/xxgk/xxgk06/202503/t20250327_1104812.html. 27. Xinhua News Agency. (2025). China’s National Voluntary GHG Emission Reduction Trading: One-Month Analysis. https://www.gov.cn/yaowen/liebiao/202504/content_7017803.htm. 28. Xinhua News Agency. (2025). China’s National Voluntary GHG Emission Reduction Trading: One-Month Analysis. https://www.gov.cn/yaowen/liebiao/202504/content_7017803.htm. 29. International Carbon Action Partnership. (2025). Emissions Trading Worldwide: Status Report 2025. https://icapcarbonaction.com/system/files/document/250612_icap_sr25_june-updates.pdf . 30. International Carbon Action Partnership. (2025). Emissions Trading Worldwide: Status Report 2025. https://icapcarbonaction.com/system/files/document/250612_icap_sr25_june-updates.pdf . 31. International Carbon Action Partnership. (2025). Korea Emissions Trading System (K-ETS), ICAP ETS Map Fact Sheet No. 47. https://icapcarbonaction.com/system/files/ets_pdfs/icap-etsmap-factsheet-47.pdf . 32. National Climate Change Secretariat, Singapore Prime Minister’s Office. (2025). Carbon Tax. https://www.nccs.gov.sg/ singapores-climate-action/mitigation-efforts/carbontax/. 33. Carbon Credits. (2025). Singapore and Japan Set New Rules for Carbon Credits and How They Shape Asia’s VCM. https://carboncredits.com/singapore-and-japan-set-new-rules-for-carbon-credits-and-how-they-shape-asias-vcm/. 34. Sources: – Quantum Commodity Intelligence. (2025). FEATURE: Japan looks to upscale the JCM to meet enhanced carbon credit goals. https://www.qcintel.com/carbon/article/feature-japan-looks-to-upscale-the-jcm-to-meet-enhanced-carbon-credit- goals-36788.html. – International Carbon Action Partnership. (2025). Korea Emissions Trading System (K-ETS), ICAP ETS Map Fact Sheet No. 47. https://icapcarbonaction.com/system/files/ets_pdfs/icap-etsmap-factsheet-47.pdf . – National Climate Change Secretariat, Singapore Prime Minister’s Office. (2025). Carbon Tax. https://www.nccs.gov.sg/ singapores-climate-action/mitigation-efforts/carbontax/. 35. International Carbon Action Partnership. (2025). Korea Emissions Trading System (K-ETS), ICAP ETS Map Fact Sheet No. 47. https://icapcarbonaction.com/system/files/ets_pdfs/icap-etsmap-factsheet-47.pdf . Asia’s Carbon Markets: Strategic Imperatives for Corporations 52