In a groundbreaking move at the 29th Conference of the Parties (COP29) held in Baku, Azerbaijan, five prominent carbon market associations from Thailand, Malaysia, Indonesia, Singapore, and the broader ASEAN region united under a Memorandum of Collaboration (MoC). This ambitious partnership is set to drive the development of the ASEAN Common Carbon Framework (AACF), a pivotal blueprint aiming to set the gold standard for carbon credit trading across the region. By promoting transparency and efficiency, this initiative is poised to usher in a new era of low-carbon society across Southeast Asia.
The signing ceremony was graced by the presence of distinguished personalities, such as Mr. Nik Nazmi bin Nik Ahmad, Malaysia’s Minister of Natural Resources, Environment, and Climate Change; Mr. Stanley Loh, Permanent Secretary for Singapore’s Ministry of Sustainability and the Environment; Mr. Ahmad Kamrizamil Mohd Riza, Malaysia’s ambassador to Azerbaijan; and Mr. Chaiwat Kovavisarach, Group CEO and President of Bangchak Corporation Plc., who is also credited with founding Thailand’s pioneering Carbon Markets Club.
Representing the ASEAN states, the signatories comprised some of the leading private-sector associations. From Thailand, Mrs. Gloyta Nathalang, Senior Executive Vice President in charge of Sustainability Management and Corporate Communications at Bangchak Corporation Public Company Limited, put pen to paper. Malaysia’s interests were represented by Dr. Renard Siew, while Ms. Natalia Rialucky signed on behalf of the ASEAN Alliance on Carbon Market (AACM). Indonesia’s voice came through Mr. Yoshan Fazri of the Indonesia Carbon Trade Association (IDCTA), with Ms. Kavitha Menon representing the Singapore Sustainable Finance Association (SSFA).
The ASEAN Common Carbon Framework (AACF) is not just a concept but a roadmap designed to standardize carbon credit projects. It seeks to bolster technical capacities through dedicated training and the sharing of best practices, thereby promoting cross-border cooperation. This visionary initiative aims to dismantle the barriers impeding international carbon credit trading and propel ASEAN’s steady march towards a low-carbon future.
Mr. Nik Nazmi bin Nik Ahmad, in his role as Malaysia’s Minister of Natural Resources, Environment, and Climate Change, expressed his optimism about the collaboration’s potential. “This historic collaboration is a crucial step in advancing carbon market growth within ASEAN,” he stated. “The ASEAN Common Carbon Framework will help operationalize the ASEAN Strategy for Carbon Neutrality. Through this partnership, ASEAN is positioned to play a leading role in global climate action, leveraging both technological and nature-based solutions to achieve a low-carbon economy.”
Echoing these sentiments, Mr. Chaiwat Kovavisarach, Group CEO of Bangchak Corporation and the mastermind behind the Carbon Markets Club, elaborated, “As Thailand’s pioneering private-sector initiative for reducing greenhouse gas emissions through carbon credit trading and raising climate action awareness, the Carbon Markets Club has seen exponential growth, from 11 founding members to 1,300 in merely three years. By fostering collaboration and building a transparent, efficient carbon market, we support the ASEAN Common Carbon Framework and are committed to ensuring Southeast Asia’s efforts resonate globally.”
Since its inception on 28 June 2021, the Carbon Markets Club has positioned itself as Thailand’s first non-profit organization dedicated to the voluntary carbon market. Founded by Bangchak Corporation Public Company Limited, BCPG Public Company Limited, alongside nine other partners, this trailblazing group focuses on heightening climate change awareness. With a burgeoning membership of over 1,300, the club facilitates carbon credit and renewable energy certificate (REC) trading, provides free carbon footprint tools for organizations and individuals, and leads public engagement drives to support Thailand’s ambitious greenhouse gas reduction targets.
For those seeking further insight or eager to join this ever-growing endeavor, inquiries can be directed to [email protected].
Isn’t this just another way for big companies to keep polluting without real consequences? Carbon credits seem like a cop-out to me.
I see your point, Ella, but carbon credits can be a step towards accountability if regulated properly.
But do you really think regulations will be enforced? History suggests otherwise.
It’s about making polluters pay, but hopefully they will push for real reduction in emissions too.
Carbon credits are a tool, but they need stringent regulations. Don’t throw the baby out with the bathwater!
This collaboration is great for ASEAN! They will set an example for global carbon credit markets.
True, but shouldn’t each country focus on reducing their own emissions first?
Fair point, Jessica, but perhaps a regional approach can amplify individual efforts.
It’s about collective responsibility. ASEAN is showing leadership, which is admirable.
Isn’t it ironic that developed nations hold massive historic emissions yet push these frameworks onto developing regions?
That’s a fair criticism, but ASEAN countries must also play a role in global climate solutions.
Ironic or not, every region needs strategies to support sustainable growth, and this is a start.
This is a massive win for the private sector. More money in the economy through green initiatives!
ASEAN’s commitment to carbon neutrality is ambitious and necessary. Every small step counts.
How effective will this actually be without geopolitical tensions affecting cooperation? It’s complicated.
As with all partnerships, it’s the test of time that will prove its resilience.
ASEAN should focus more on renewable energy instead of this trading gimmick.
Starting somewhere helps in gaining momentum for more stringent actions like renewables.
Maybe, but it’s just frustrating to see so much time spent on market solutions.
Education and awareness are key. Great to see the mention of training in the framework!
More than education, we need solid policies that enforce emission reductions!
Is this going to help farmers in these countries, or is it just for the big guys?
Well, this should have happened years ago. Better late than never though!
True, Sophia, but the cynic in me wonders if this will be nothing but greenwashing at an international level.
With countries like Indonesia involved, this could be a massive game-changer if executed properly.
Hope this sets a precedent for other regions to follow. Collaboration is the way forward.
Isn’t it just the same old people doing the same old things with a new coat of paint?
Mixed feelings here. On paper, it’s great, but execution is a different beast.
Absolutely, Eva. Hopefully execution will match the ambition.
Great initiative, but it will need continual oversight and support to adapt to future climate challenges.
Who cares about regional frameworks when there’s still rampant deforestation happening?
Addressing deforestation is crucial, but regional frameworks provide a foundation for broader actions.
Deforestation and carbon credits need not be mutually exclusive focuses.