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Kaho Yu, Yunheng Zhou, Xinchuchu Gao
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This article examines how the development of Article 6 of the Paris Agreement is shaping the evolution of carbon markets in the Association of Southeast Asian Nations (ASEAN) and the implications for the region’s energy interconnectivity and transition. ASEAN member states are at varying stages of establishing carbon pricing systems, from implementing emissions trading schemes to carbon taxes and voluntary markets. However, the operationalisation of Article 6 introduces a high-integrity framework that addresses persistent institutional and technical barriers. Core features such as corresponding adjustments, measurement, reporting and verification (MRV) protocols and centralised registries provide a structural reference for enhancing market credibility and interoperability. The article analyses how Article 6 could play a role in improving governance, legal infrastructure, price signals and MRV requirements in ASEAN. It further considers the indirect role of carbon pricing in influencing energy transition outcomes, including investment decisions, dispatch patterns and cross-border electricity trade. While Article 6 mechanisms are shaping the design of regional carbon markets, their implementation remains at an early stage due to the complexity of international negotiations and differing levels of domestic readiness. The article highlights that the pace and effectiveness of Article 6 uptake in ASEAN will depend on both international rule-making and countries’ ability to build the institutional infrastructure required for high-integrity carbon trading.