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Carbon Pricing in AZEC Partner Countries: Design, Effectiveness, and Implications for the AZEC-DCM Policy Dialogue

Editor

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  • Economic Research Institute for ASEAN and East Asia (ERIA)
  • The Institute of Energy Economics

Author

Listed:
  • Economic Research Institute for ASEAN and East Asia (ERIA)
  • The Institute of Energy Economics

Abstract

To support the AZEC–DCM policy dialogue, this study examines the design and effectiveness of mandatory carbon pricing measures across all AZEC partner countries. The report is structured around three analytical components. First, it reviews existing carbon pricing policies and institutional arrangements in partner countries. Second, it assesses the role of upfront public investment, estimating how early spending on energy efficiency and low-carbon technologies can reduce long-term fuel subsidy burdens. Third, it analyses the current state of supply-chain greenhouse gas (GHG) visualisation and high-integrity carbon markets, identifying key gaps and implementation challenges. The report also synthesises insights from two AZEC–DCM policy dialogues held in 2025 and serves as a practical reference for policymakers, businesses, and other stakeholders seeking to advance effective carbon pricing and decarbonisation strategies across the AZEC region.

Suggested Citation

  • Economic Research Institute for ASEAN and East Asia (ERIA) & The Institute of Energy Economics, 2026. "Carbon Pricing in AZEC Partner Countries: Design, Effectiveness, and Implications for the AZEC-DCM Policy Dialogue," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2025-RPR-44 edited by Economic Research Institute for ASEAN and East Asia (ERIA) & The Institute of Energy Economics, October.
    • Handle: RePEc:era:eriabk:2025-rpr-44
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