Carbon pricing for the transition toward net-zero of Asia
This paper provides an overview of progress on carbon taxes, emissions trading schemes (ETS) and voluntary carbon crediting mechanisms in Asia, identifying relevant policy gaps and giving suggestions based on the lessons and experiences with pertinent policy practices in this region. Overall, carbon pricing practices in Asia are still at an early stage of development, and the resulting carbon prices in reality are much lower than the levels needed for achieving net-zero (i.e. starting from USD 30 /t-CO2 immediately, rising to around USD 100 /t-CO2 by 2030 and then going much higher by mid-century). Therefore, carbon pricing in Asia should be largely strengthened and pricing levels should become ambitious enough to catalyse a transition to net-zero.