• ASEAN giants join forces to create a common ground for carbon markets.
• The framework supports the transition to greener economies and facilitates businesses' participation across the region.

At climate talks in Baku, Azerbaijan, the Southeast Asian countries, collectively known as ASEAN, have agreed to work together on a unified framework to regulate carbon markets.

This agreement is important because trading carbon credits will reduce greenhouse (GHG) gas emissions, allowing them to meet their sustainable goals more efficiently. The countries are about to create a common rule across the region, making it easier for businesses to get involved.

The parties who mooted the plan include four ASEAN giants—Thailand, Malaysia, Indonesia, and Singapore—the ASEAN Alliance on Carbon Market (AACM), and Bangchak Corporation (Thailand).

Bangchak Corporation is the brainchild behind the Carbon Markets Club, which was created in 2021 and aims to spread awareness about climate actions and promote carbon trading.

Mr. Chaiwat Kovavisarach, Group CEO of Bangchak Corporation and founder of the Carbon Markets Club, said: “As Thailand’s pioneering private-sector initiative for reducing greenhouse gas emissions through carbon credit trading and raising climate action awareness, the Carbon Markets Club has grown from 11 founding members to 1,300 in just three years. By fostering collaboration and building a transparent, efficient carbon market, we support the ASEAN Common Carbon Framework and are committed to ensuring Southeast Asia’s efforts resonate globally.”

This plan is part of global efforts to reduce emissions, establish a unified approach to carbon markets, and support countries' transitions to greener economies.

Malaysia’s Minister of Natural Resources, Environment, and Climate Change, Mr. Nik Nazmi bin Nik Ahmad, said: “This historic collaboration is a crucial step in advancing carbon market growth within ASEAN. The ASEAN Common Carbon Framework will help operationalise the ASEAN Strategy for Carbon Neutrality. Through this partnership, ASEAN is positioned to play a leading role in global climate action, leveraging both technological and nature-based solutions to achieve a low-carbon economy.”

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Source: Carbon Herrald