Carbon pricing policies form a crucial tool to deliver on the ambitious goals of the Paris Agreement and avoid the costs of carbon lock-ins. In the past years, numerous jurisdictions in Southeast and East Asia have either adopted or are in the process of establishing a carbon price to reduce greenhouse gas (GHG) emissions and to decarbonize electricity and industry sectors. The far-reaching impact of the COVID-19 crisis presents a new set of challenges and opportunities for decarbonizing economies as countries seek to balance key priorities of economic recovery, maintaining fiscal balance, and the transition to low-carbon systems. This is occurring at a time when the window for climate action is closing rapidly, and massive investments in low-carbon energy technologies and systems are urgently needed.

Against this background, the International Energy Agency (IEA), International Carbon Action Partnership (ICAP), and Regional Project Energy Security and Climate Change Asia- Pacific (RECAP) Konrad-Adenauer-Stiftung are hosting a closed online workshop titled: “Carbon Pricing in Southeast and East Asia and COVID-19 response: Issues and opportunities for ensuring a sustainable and low-carbon energy development”, on 15-16 July 2020.

In this workshop, experts and policymakers presented the state of play of carbon pricing in the region, analyse interactions between the latest climate and energy policy signals against the background of new market dynamics and green recovery plans, and discuss the opportunities for cost-effective low-carbon transitions in the years ahead with a focus on the power sector.

Mr. Beni Suryadi, ACCEPT Project Manager, was invited to participate and moderated the discussion with experts from Indonesia and Vietnam who are sharing the progress on the adoption of carbon pricing instruments and priorities in light of recent dynamics in the political and economic landscape.

Carbon pricing is a key low-carbon policy instrument to support a sustainable recovery. Carbon pricing can help countries recovering from the COVID-19 crisis to lock-in low-carbon transition pathways. However, this will require public support, the prospects for green recovery plans, and the political will to overcome the risk of a resurgence in “brown” investments.

The event was a closed virtual workshop. Participation was only by personal invitation.