[LS5] - Solutions and systems to drive energy transition in ASEAN: Carbon pricing and voluntary carbon credits

The Asia Transition Finance Study Group (ATF SG) held the fifth learning session (LS5) of 2025 on 19 June (Thu).

The ATF SG hosted the fifth learning session for 2025 on 19 June via Zoom, focusing on the development of carbon pricing and voluntary carbon credits in ASEAN.

The Secretariat introduced carbon pricing and credits, explaining their dual mission of reducing and removing greenhouse gases, the difference between compliance and voluntary carbon markets and key frameworks such as Article 6 of the Paris Agreement. The Secretariat also highlighted global trends, noting the geographic and sectoral expansion with 80 carbon pricing initiatives now covering 28% of global emissions.

Abatable outlined key criteria for determining the quality of credits, such as additionality, single counting, and permanence, while noting the growing interest in high-integrity carbon credits.

GenZero also emphasised the rising preference for higher-quality carbon projects, with strong demand and price signals being crucial to scaling high-integrity transition credits. The speaker stressed the critical role of carbon credits in corporate decarbonisation and presented a case study on how transition credits can accelerate the coal-to-clean transition.

The Economic Research Institute for ASEAN and East Asia (ERIA) presented its study on the ASEAN Carbon Market Ecosystem Roadmap and VCM Guidelines. The speakers highlighted the benefits of a unified VCM framework in ASEAN, including better market credibility, increased liquidity, and positioning ASEAN as a key supplier. The speakers also shared its demand analysis of credits, market ecosystem readiness, and ongoing efforts to develop the VCM guideline.

The session wrapped up with an insightful group panel discussion among all guest speakers, including International Emissions Trading Association. Panelists stressed the importance of ensuring the integrity of ASEAN regional carbon markets by supplying high quality carbon credits, and called for close collaboration between project developers and investors.