At COP29, ASEAN countries took a major step toward a unified carbon market by signing a Memorandum of Collaboration (MoC). Thailand, Malaysia, Indonesia, and Singapore signed the agreement to create a common framework for carbon credit trading in Southeast Asia.
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ASEAN’s Commitment to Carbon Market Growth
The ASEAN Alliance on Carbon Market (AACM) played a key role in this agreement. The MoC marks the beginning of efforts to establish shared guidelines and standards for the region’s carbon market.
Thailand’s Bangchak Corporation, a key advocate of this initiative, has been active in laying the groundwork since 2021. The company’s Carbon Markets Club, founded to drive greenhouse gas reduction through carbon credit trading, has expanded rapidly, growing from 11 members to 1,300 in just three years.
Mr. Chaiwat Kovavisarach, CEO of Bangchak Corporation, highlighted the importance of collaboration in establishing a transparent and efficient carbon market. He emphasized that this initiative supports ASEAN’s efforts to build a sustainable, low-carbon economy.
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A Step Forward for ASEAN’s Climate Goals
The signing of the MoC shows ASEAN’s strong momentum in the carbon credit space. This is evident in recent developments, such as Indonesia’s agreement with Japan under Article 6.2. Though a bilateral deal, this marks growing interest in carbon credit trading in Southeast Asia.
Malaysia’s Minister of Natural Resources, Environment, and Climate Change, Nik Nazmi bin Nik Ahmad, also expressed his support for the MoC. He stressed that the ASEAN Common Carbon Framework would help operationalize ASEAN’s strategy for carbon neutrality. He believes the partnership positions ASEAN to play a key role in global climate action through both technological and nature-based solutions.
The Road Ahead for ASEAN’s Carbon Market
This collaboration among ASEAN countries will strengthen the region’s ability to meet global climate goals. By establishing common standards for carbon credit trading, ASEAN aims to boost the regional market. This move makes Southeast Asia a key player in the global push for a low-carbon future.
The MoC signed at COP29 is a significant milestone in Southeast Asia’s climate journey. With support from private-sector initiatives like Thailand’s Carbon Markets Club, the region is set to lead in the carbon credit market.
The ASEAN Common Carbon Framework will guide these efforts, allowing Southeast Asia to contribute meaningfully to the global climate agenda.