Carbon Market Insights: Volume 1, Issue 1

This briefing from the International Institute for Sustainable Development reviews global and regional carbon pricing trends, focusing on Southeast Asia. It analyzes the impact of the European Union's Carbon Border Adjustment Mechanism (CBAM), the implementation of Paris Agreement Article 6, and provides updates on carbon pricing developments in Indonesia, the Philippines, and Viet Nam.

• Carbon pricing is becoming mainstream globally, with 43 carbon taxes and 38 emissions trading systems (ETSs) currently in force, which together cover more than 23% of global greenhouse gas emissions.
• The European Union's Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase in January 2026. While economy-wide exposure for Indonesia, the Philippines, and Viet Nam is below 1%, specific sectors are highly vulnerable: over 20% of Viet Nam's iron and steel exports and nearly 20% of Indonesia's aluminum exports are destined for the EU.
• Indonesia is the only Southeast Asian nation with an operational ETS. It has introduced Regulation 110/2025 to align its national framework with Article 6 of the Paris Agreement and establish a carbon unit registry, although the carbon tax legislated under Law 7/2021 is still postponed.
• Implementation of Article 6.2 is progressing rapidly with more than 100 bilateral agreements announced or formalized. Japan and Singapore are the most active purchasing countries, primarily expanding transactions with partners in Asia.
• In the Philippines, carbon pricing is moving toward formal legislation with several bills before the 20th Congress, and the Department of Energy has a new framework for carbon credits in the energy sector. In Viet Nam, carbon market trading is postponed until the end of 2026, though the country has established a national registry system and rules for a domestic trading exchange.

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} }