Description

Carbon pricing refers to an initiative that puts a price on GHG emissions. It is a mechanism that utilises market forces to address climate change by creating financial incentives for companies and countries to lower their emissions — either by switching to more efficient processes or cleaner fuels. It is one of the effective means for countries to pace the implementation of the energy transition and achieve domestic, regional and international climate targets.

Currently, some AMS has introduced or proposed direct carbon pricing. Singapore has introduced carbon tax implementation since 2019. Meanwhile, Indonesia has been stepping up its commitment to enforce both carbon tax and ETS by introducing numerous supporting policies addressing the technical implementation. In addition, Malaysia, Thailand, and Vietnam anticipate launching ETS as their latest climate action plan. More AMS commitments to introducing carbon pricing initiatives can bring many benefits, including enhanced climate change mitigation, improved environmental and health outcomes, economic opportunities, climate adaptation and resilience, international reputation, and compliance with international standards.

In line with these realities, the regional workshop is expected to be a platform for facilitating dialogue and knowledge sharing between experts and government towards advancing regional energy-climate nexus collaboration and enhancing capabilities of AMS on the Carbon Market for/in the energy sector. This Workshop will support the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II: 2021-2025, notably:

1. Programme Area 5. Renewable Energy (RE), Outcome-based strategy (OBS) 6, to enhance the ASEAN Renewable Energy Information and Training Centre, and
2. Programme Area 6. Regional Energy Policy and Planning (REPP), Outcome-based strategy (OBS) 6, to promote information sharing on the Energy-Climate Nexus.