Jakarta, 19–20 December 2024: ERIA successfully convened the first Working Group Meeting on the Carbon Market in ASEAN and East Asia. Held at the ERIA office in Jakarta with a hybrid format, the meeting aimed to facilitate and accelerate the implementation of carbon markets in the region.

As ASEAN strives toward its net-zero emissions goals, the study on carbon markets seeks to identify barriers and establish the necessary conditions for a competitive and functional carbon market. This initiative aims to create pathways for a future carbon market hub in ASEAN, transitioning from voluntary carbon markets to fully integrated, mandatory systems with comprehensive oversight and participation from emissions-related industries and businesses.

The meeting also leveraged insights from international experiences, such as the EU Emission Trading System, to enrich ASEAN's understanding and approaches. These insights will inform the development of clear rules and regulations for a robust carbon market at the regional level.

Opening Remarks and Strategic Goals

Naoto Okura, Director General for Research and Policy Design at ERIA, delivered the opening remarks, emphasising the growing interest in carbon markets across the region.

Dr Nuki Agya Utama, Director for Energy Policy and Head of the Asia Zero Emission Centre (AZEC) at ERIA, highlighted the role of carbon markets as key market enablers – one of AZEC’s primary pillars. Dr Utama expressed hope that the study’s outputs could serve as actionable policy inputs during upcoming AZEC forums and ASEAN Chairmanship meetings in Malaysia.

Dr Han Phoumin, Senior Energy Economist at ERIA and project leader, stressed the significance of this initiative and announced plans to publish the study’s findings in an academic book. Dr Phoumin is supported by co-leaders Professor Phouphet Kyophilavong, Vice President of the National University of Laos, and Professor Youngho Chang from the Singapore University of Social Sciences (SUSS).

Expert Participation and Outcomes

The meeting brought together 25 scholars, researchers, and experts in carbon markets from ASEAN, East Asia, and beyond. Participants presented initial findings from various chapters, including country-specific case studies, regional market integration strategies, and lessons learned from established systems.

The discussions provided valuable feedback that will guide the second Working Group Meeting scheduled for next year. This follow-up meeting will finalise the study’s chapters before publication, contributing to the knowledge base for ASEAN’s transition to integrated carbon markets.

ERIA remains committed to supporting initiatives that drive sustainable growth and enable ASEAN to achieve its climate and economic goals.