The private sector's role in S-E Asia carbon markets development

IT is evident that the Asia-Pacific (Apac) region will present diverse commitments in climate change as more corporate and government stakeholders weigh their competitive positions while transitioning towards a low-carbon future. This journey consists of a myriad of solutions to reduce carbon footprint, one of which is the adoption of efficient carbon markets. While the development of carbon markets globally has been largely driven by governmental and regulatory policies, it is important to highlight the crucial role the private sector plays in the adoption of voluntary carbon markets, especially in South-east Asia.

The role of the private sector in decarbonisation will continue to grow as more global corporates commit to and begin delivering on carbon neutrality goals, and there have been promising signs in the region. A recent member survey report by RE100 - a global initiative that requires member businesses to utilise 100 per cent renewable energies to fulfil electricity needs - revealed an uptick in RE100 commitments in the region, with 42 per cent of new RE100 members coming from Apac.

While these are encouraging signs, obstacles remain for businesses' renewable energy adoption. Apac is considered a challenging region for businesses to procure renewable energies to power their facilities and operations, with key constraints including the regulatory environment, infrastructural limitations and costs. According to the report, RE100 members indicated that renewable sources account for only 16 per cent of electricity consumed by their Apac facilities and operations - a stark contrast to Europe (81 per cent) and North America (59 per cent).