In a third post of a sequence (and last for now) covering different topics individually for several countries - hydrogen and ESG / sustainability taxes, incentives and grants - today's post its about Asian countries, their specific carbon and emission trading systems.
Here a few highlights per country:
China. Launched its ETS in 2021, with a dedicated exchange in Shanghai, covering the power sector - which accounts for around 40% of the country's total emissions
India. Plans a stabilisation fund to keep prices of credits in its planned carbon market above a certain threshold
Indonesia. Launched the first phase of mandatory carbon trading for coal power plants last February
Malaysia. Launched a voluntary carbon market (VCM) in December with the introduction of the Bursa Carbon Exchange, the world's first Shariah-compliant carbon exchange
Japan. Proposed a carbon levy on fossil fuel importers in 2028-29 fiscal year to encourage companies to curb carbon dioxide (CO2) emissions
South Korea. ETS started in 2015, covering around 70% of the economy.
Singapore. Carbon taxes and plans to develop hydrogen trading to guarantee of origin to certify the low-carbon origin of imported hydrogen
Hong Kong. Stock exchange carried out the first batch of carbon credit trades on its new voluntary carbon market in November
Philippines. Studying the feasibility of implementing carbon pricing mechanisms such as a carbon tax to generate revenue that can be tapped for environmental concerns
Vietnam. Key foundations of a carbon trading platform that is to be set up for a pilot operation in 2025.
Asia has a clear protagonism in the current global expansion of carbon credit markets. Let's not forget that Japan is leading the Article 6 Implementation Partnership.
