Carbon pricing in Asia, Pacific on rise

GLASGOW, Scotland

The employment of carbon pricing in Asia and the Pacific has been on the rise, with six such initiatives put in place, including four domestic emission trading systems and a carbon tax in two jurisdictions.

Countries such as China, Japan, and Singapore are employing carbon pricing to reach their net-zero target.

Japan imposed a "Tax for Climate Change Mitigation" on the use of fossil fuels and employs the revenue to mitigate energy-related emissions, according to a recent report by Asian Development Bank.

Singapore also uses a carbon tax for certain industrial activities and plans to spend the revenue on carbon-abatement projects.

The region's first nationwide emissions trading system was established by South Korea in 2015, while China, one of the biggest polluters in the world, launched its national emissions trading system in July this year.

"For carbon pricing to be viable in the long-run towards net-zero emission pathways, there is a need to transform not just the industrial sectors but also emphasize on R&D (Research and development) for low carbon technologies as well as incentivize behavioral change," said Virender Kumar Duggal, principal climate change specialist at the Asian Development Bank.

He also warned policymakers "should not wait" and do the preparatory work for carbon pricing, which is thought to be at the heart of climate change policies.​​​​​​​