Carbon Pricing Potential in East and South Asia

The effectiveness of carbon pricing as a market-based policy tool with economy-wide transformation potential has increasingly rendered it the instrument of choice among policy makers responding to challenges posed by climate change. However, the potential for jurisdictions to introduce carbon pricing instruments varies considerably owing to differences in political, legal, economic, technical, and multilateral contexts. Previous work under this project developed an analytical framework to assess carbon pricing potential and readiness, along these five dimensions. This report applies the framework to 15 selected jurisdictions in East and South Asia to identify opportunities for carbon pricing in a region crucial for climate change mitigation efforts. The analysis reveals pathways for carbon pricing, and points to emerging opportunities in jurisdictions where the challenges to it seem greatest.