Carbon Market Insights: Volume 1, Issue 1

The document reports that carbon pricing now covers over 23% of global greenhouse gas emissions through 43 carbon taxes and 38 emissions trading systems. It highlights the vulnerability of specific industrial sectors in Southeast Asia to the EU's Carbon Border Adjustment Mechanism (CBAM), which entered its definitive phase in January 2026, noting that over 20% of Viet Nam’s iron and steel exports and nearly 20% of Indonesia’s aluminum exports are destined for the EU. The briefing also details the expansion of Article 6.2 bilateral agreements, with over 100 announced or formalized, led by purchasing countries such as Japan and Singapore. Regionally, Indonesia is identified as the only Southeast Asian nation with an operational ETS, having aligned its framework with Article 6 via Regulation 110/2025, although its carbon tax under Law 7/2021 remains postponed. Other updates include the Philippines moving toward formal carbon pricing legislation and Viet Nam postponing carbon market trading until the end of 2026.

• Carbon pricing is now a mainstream global tool, with 43 carbon taxes and 38 emissions trading systems (ETSs) currently covering more than 23% of global greenhouse gas emissions.
• The European Union's Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase in January 2026, creating high vulnerability for specific Southeast Asian industries; specifically, over 20% of Viet Nam’s iron and steel exports and nearly 20% of Indonesia’s aluminum exports are sent to the EU.
• Implementation of Article 6.2 of the Paris Agreement is accelerating globally, with more than 100 bilateral agreements announced or formalized, with Singapore and Japan acting as the most active purchasing countries.
• Indonesia is the only country in Southeast Asia with an operational ETS and has used Regulation 110/2025 to align its national framework with Article 6 of the Paris Agreement, though the carbon tax mandated by Law 7/2021 is still postponed.
• In the Philippines, carbon pricing is transitioning from policy debate to formal legislation with bills before the 20th Congress, while Viet Nam has postponed trading on its carbon market until the end of 2026.

APA

Turano'], [. G. '. J. C.-N. '. G. G.-R. '. D. '. B. '. D. '. L. (. M. '. E. (2026). Carbon Market Insights: Volume 1, Issue 1. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/carbon-market-insights-volume-1-issue-1

Chicago

Turano'], ['Philip Gass', 'Francesse Joy Cordon-Navarro', 'Mary Grace Gabis-Reyes', 'Mai Duong', 'Antoine Bonnet', 'Simon Dünnenberger', 'Joanna Lyn (Ally) Munda', 'Gelen Emil. Carbon Market Insights: Volume 1, Issue 1. International Institute for Sustainable Development, 2026. https://www.iisd.org/publications/brief/carbon-market-insights-volume-1-issue-1.

Wikipedia

{{cite report |last1=Turano'] |first1=['Philip Gass', 'Francesse Joy Cordon-Navarro', 'Mary Grace Gabis-Reyes', 'Mai Duong', 'Antoine Bonnet', 'Simon Dünnenberger', 'Joanna Lyn (Ally) Munda', 'Gelen Emil |title=Carbon Market Insights: Volume 1, Issue 1 |publisher=International Institute for Sustainable Development |date=25 March 2026 |url=https://www.iisd.org/publications/brief/carbon-market-insights-volume-1-issue-1 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{turano2026carbon, author = {Turano'], ['Philip Gass', 'Francesse Joy Cordon-Navarro', 'Mary Grace Gabis-Reyes', 'Mai Duong', 'Antoine Bonnet', 'Simon Dünnenberger', 'Joanna Lyn (Ally) Munda', 'Gelen Emil}, title = {{Carbon Market Insights: Volume 1, Issue 1}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = mar, url = {https://www.iisd.org/publications/brief/carbon-market-insights-volume-1-issue-1}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }