The annual climate finance shortfall in the Asia-Pacific region amounts to $800 billion, highlighting a critical need for scalable solutions to support low-carbon development. Carbon markets present a viable mechanism to mobilize funding and accelerate the transition toward sustainable economic models, particularly in emerging and developing economies across the region. A new report urges businesses to actively engage with carbon trading systems and incorporate them into their broader environmental strategies to drive long-term resilience and decarbonization.
At the core of international climate cooperation is Article 6 of the Paris Agreement, which establishes a framework for cross-border carbon credit exchanges, aligns measurement standards, and facilitates the flow of investment into climate initiatives. Given that Asia accounts for over half of global greenhouse gas emissions and contributes 55% of the world’s GDP, the region is uniquely positioned to lead in shaping effective carbon market practices.
Produced jointly by the World Economic Forum and Bain & Company, this analysis offers an in-depth look at the current state and future potential of carbon markets in Asia. It examines regional innovations, identifies key market trends, and extracts actionable insights from existing programs. By showcasing Asia’s evolving approach to carbon pricing and trading, the report seeks to support regional decarbonization while also offering a replicable model for other parts of the world aiming to strengthen climate finance mechanisms.
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Asia’s Carbon Markets: Strategic Imperatives for Corporations
The climate finance gap of Asia-Pacific countries is $800 billion on an annual basis. Carbon markets can be a means to provide the resources needed to catalyse and secure a more orderly carbon transition process, especially in developing and emerging markets. This report calls on corporations to explore and integrate the use of carbon markets as part of their climate strategies to enable sustainable growth and low-carbon transition efforts. n nThe climate finance gap of Asia-Pacific countries is $800 billion on an annual basis. Carbon markets can be a means to provide the resources needed to catalyse and secure a more orderly carbon transition process, especially in developing and emerging markets. This report calls on corporations to explore and integrate the use of carbon markets as part of their climate strategies to enable sustainable growth and low-carbon transition efforts. n nCentral to meeting global climate ambitions is Article 6 of the Paris Agreement – a transformative framework for international cooperation that enables cross-border carbon trading, harmonizes standards and mobilizes global capital to scale up climate solutions. Asia, with more than 50% of global emissions and 55% of GDP, stands at the forefront of this transition opportunity. n nThe World Economic Forum, in collaboration with Bain & Company, has prepared this insight report, which presents a comprehensive review of Asian carbon markets. It decodes the region’s pioneering innovations, dissects critical market dynamics and distills hard-won lessons. By spotlighting Asia’s unique carbon market practices, the report aims not only to empower the region’s decarbonization journey but also to inspire global climate action, offering a blueprint for nations worldwide.