Five ASEAN Carbon Market Associations unite at COP29 to support the ASEAN Common Carbon Framework

Azerbaijan, 18 November 2024 – Five major carbon market associations representing Malaysia, Indonesia, Singapore, and Thailand and ASEAN today formalised a historic partnership at the COP29 event taking place at Baku, Azerbaijan, with the exchange of a Memorandum of Collaboration (“MoC”). 

The MoC was signed by the following associations:

1. Malaysia Carbon Market Association (MCMA), represented by Dr Renard Siew
2. ASEAN Alliance on Carbon Market (AACM), represented by Dharsono Hartono
3. Indonesia Carbon Trade Association (IDCTA), represented by Dr Riza Suarga 
4. Thailand Carbon Markets Club (TCMC), represented by Gloyta Nathalang 
5. Singapore Sustainable Finance Association (SSFA), represented by Kavitha Menon 

The MoC exchange, which was witnessed by Malaysia’s Minister of Natural Resources and Environmental Sustainability, His Honourable Nik Nazmi Bin Nik Ahmad, marks a significant step forward in advancing regional cooperation on carbon markets. It also
signals Malaysia’s leadership role, as the country prepares to undertake the Chairmanship of ASEAN in 2025, to facilitate strategic collaborations in the development of the ASEAN Common Carbon Framework (“AACF”). 

The MoC aims to facilitate the regional carbon market players’ effort to support the supply of high-quality carbon credits and enhance demand signals within the ASEAN region. By fostering greater interoperability between ASEAN nations’ carbon markets, this could help improve market liquidity and in return achieve better price efficiency for carbon projects. As various ASEAN countries develop their own national carbon crediting mechanisms, the mutual recognition of domestic methodologies and sharing of talent pool of resources (e.g. validation and verification bodies) can help reduce delivery times of carbon credits to the market.

The MoC has an ambition to improve demand signals to encourage ASEAN companies to decarbonise, to source carbon credits that aligns with other internationally recognised frameworks, to develop an ASEAN Claims Guidance providing minimum standards of governance and provide capacity building support towards high-quality carbon projects in both developing and emerging economies. 

Speaking at the exchange ceremony, YB Nik Nazmi commented, “This historic collaboration is a crucial step in advancing carbon market growth within ASEAN. The ASEAN Common Carbon Framework will assist in operationalising the ASEAN Strategy for Carbon Neutrality and through this partnership, we hope to see ASEAN positioned to play a leading role in global climate action, leveraging both technological and nature-based solutions to drive towards a low-carbon economy.” 

Quote from Dharsono Hartono, the Permanent Chair of AACM

“On behalf of AACM, we are excited to be part of this landmark partnership. We believe that the ASEAN Common Carbon Framework (ACCF) will be instrumental in advancing the ASEAN Strategy on Carbon Neutrality. 

In particular, the ACCF has the potential to make Strategy (4) – Interoperable Carbon Markets and Strategy (5) – Credible and Common Standards, a reality across the region. By facilitating the development of carbon markets, fostering growth, and unlocking
the associated benefits, this collaboration will help bring ASEAN closer to realising its immense potential”

Quote from Dr Riza Suarga, President of IDCTA

“Indonesia Carbon Trade Association (IDCTA) is truly honored in supporting the establishment of MCMA, being part of this historic collaboration and welcoming Malaysia to chair ASEAN in 2025. The world needs climate solution deliverables, and we strongly belief

that ASEAN Framework can accelerate just that. We all should expand our potential in saving the planet, and therefore collaborative efforts would be one perfect path. Beside executing our missions, IDCTA is committed to prepare Indonesia in becoming a game changer in enhancing the attractiveness of regional carbon market through optimizing Indonesia’s carbon resources as well
as market potential, ensuring high integrity of carbon projects using digital technology and strengthening voluntary carbon market with endorsing non-state actors role in global platform discourses.”

Quote from Dr Renard Siew, President of MCMA

“The ASEAN Common Carbon Framework is indeed a catalyst for innovation and cooperation across borders. It lays down the groundwork for a vibrant carbon market ecosystem that enables active participation from ecosystem players thus accelerating our region’s path toward a low-carbon future. I look forward to working more closely with our counterparts to drive growth, integrity and impact across ASEAN”

Quote from Chaiwat Kovavisarach, founder of TCMC

“As Thailand’s pioneering private sector initiative focused on reducing greenhouse gas emissions through carbon credit trading and raising climate action awareness, we are proud to have grown from 11 founding members to 1,300 in just three years. We foster collaboration among stakeholders and strive to build a transparent, efficient carbon market. Committed to working with regional partners, we support the ASEAN Common Carbon Framework, paving the way for a sustainable, low-carbon future in Southeast Asia, ensuring our collective efforts resonate on a global scale,” said Chaiwat Kovavisarach, Group CEO and President of Bangchak Corporation, and founder of the Thailand Carbon Markets Club. 

Quote from Oi-Yee Choo, CEO of Climate Impact X and Co-lead of SSFA’s Carbon Markets Workstream:

“This MoC builds on the strong ties within ASEAN, particularly among its industry players. It marks a significant milestone as regional industry bodies come together to foster the development of high-quality carbon projects that will contribute to global climate action. This agreement is an important first step and SSFA is proud to champion this initiative from Singapore. We are committed to mobilising Singapore’s vibrant climate services and carbon trading ecosystem to support the growth of ASEAN’s Carbon Markets.”