Carbon Pricing Potential in East and South Asia

A broad consensus exists that carbon pricing is key for cost-effective emission reductions and that it must play a major role in driving the transition to a climate-neutral economy. However, despite significant progress in wider climate policy uptake in recent years, the vast majority of greenhouse gas (GHG) emissions remain unpriced. Making a success of carbon pricing in individual jurisdictions requires a detailed and methodical understanding of their circumstances. Hence, the aim of the current report is to develop an analytical framework that contributes to such an understanding. This interim report is the first part of the project “Potentials of introducing carbon pricing, especially CO2 taxes and emission trading schemes in Asia”. Further work planned under the project will develop an empirical application of the analytical framework developed in this report in the context of emerging Asian jurisdictions.