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Asia financial group releases report on carbon markets

By Hui Ching-hoo   
October 30, 2023

An Asian securities and financial markets group has published a report to help governments and market participants identify key considerations for the development of carbon markets in the Asia Pacific region.

The report by the Asia Securities Industry & Financial Markets Association (ASIFMA) contains a set of recommendations covering principles and policies, regulatory classification, systems and infrastructure, and integrity of emissions data, among other things.

“It aims to build on the existing body of work relating to the development of carbon markets by looking at carbon market development from an Asia Pacific perspective,” ASIFMA says in a statement on October 26.

Among other things, the report calls on governments and market participants to clearly define the role of carbon credits in their ability to support the transition to net zero, understand the key issues that impact the development of compliance carbon markets and voluntary carbon markets, and to evaluate the current status closely.

“Well-functioning, robust and liquid carbon markets have a significant role to play in supporting climate transition and achievement of net zero ambitions,” says Diana Parusheva-Lowery, head of public policy and sustainable finance at ASIFMA.

The group has over 170 member firms comprising a wide range of financial institutions, including banks and asset managers.