Ecobiz.asia – The Association of Southeast Asian Nations (ASEAN) is taking significant steps toward developing a regional carbon market through the ASEAN Common Carbon Framework (ACCF).
This initiative includes finalizing governance structures, discussing methodologies, and formulating an implementation roadmap.
The move aims to establish a transparent, efficient, and well-regulated regional carbon market that can attract green investment and support decarbonization efforts across the region.
Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi bin Nik Ahmad, emphasized the ACCF’s critical role in unifying ASEAN’s carbon market mechanisms.
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“The ACCF serves as a key catalyst to unlock the potential of ASEAN’s carbon market. It will drive mutual recognition of methodologies, enhance cooperation, and build capacity to ensure a transparent, efficient, and competitive carbon market in ASEAN,” he stated in a press release on Wednesday (April 2, 2025).
Nik Nazmi previously delivered a keynote address at the ACCF Workshop held on March 20, 2025, in Kuala Lumpur, Malaysia. The event brought together policymakers, industry leaders, and experts to accelerate the harmonization of carbon trading systems in the region.
The ACCF Workshop was organized by the ASEAN-UK Green Transition Fund (GTF), the Malaysia Carbon Market Association (MCMA), and Equatorise Advisory.
This initiative received support from multiple stakeholders, including the ASEAN Business Advisory Council (ASEAN-BAC) and various national carbon trading associations such as the Thailand Carbon Markets Club (TCMC), the Indonesia Carbon Trade Association (IDCTA), the ASEAN Alliance on Carbon Market (AACM), and the Singapore Sustainable Finance Association (SSFA).
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During the workshop, Nik Nazmi highlighted Malaysia’s efforts in drafting a National Climate Change Bill and a National Carbon Market Policy, which align with ASEAN’s decarbonization initiatives under Article 6 of the Paris Agreement.
He stated that Malaysia’s initiatives complement the ASEAN framework by mobilizing capital and supporting decarbonization opportunities in the region. He also noted that the roadmap developed from the workshop would help expand participation across ASEAN, align policies, and support both voluntary and compliance carbon markets.
Meanwhile, the UK government reaffirmed its support for regional cooperation in Southeast Asia. The British Ambassador to ASEAN, Sarah Tiffin, stated that the UK is actively backing the ACCF through the ASEAN-UK Green Transition Fund.
“Through this initiative, we are assisting ASEAN countries in developing a governance framework that will facilitate the expansion of the region’s carbon market,” Tiffin said.
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ASEAN Deputy Secretary-General for the ASEAN Economic Community, Satvinder Singh, highlighted progress in ASEAN’s carbon pricing mechanisms.
According to Singh, Malaysia, Singapore, and Thailand have already introduced carbon taxes and voluntary carbon credit systems, paving the way for a broader regional framework.
Discussions during the workshop covered key aspects such as carbon supply-demand dynamics, market infrastructure, regulatory alignment, and pilot projects.
MCMA President Dr. Renard Siew outlined five key principles of the ACCF, including mutual recognition of national methodologies and adherence to international carbon market standards.
Additionally, Steven Marcelino, CEO of Equatorise Advisory, stressed the importance of regional collaboration in ensuring the success of the ACCF. ***