ASEAN carbon markets could create 13.7 million jobs by 2050

A recent report—The opportunity for carbon markets in ASEAN—highlights Southeast Asia’s potential to lead global carbon markets, unlocking $3 trillion in value and creating 13.7 million jobs by 2050.

Some key ASEAN projects are located in Kalimantan, the Indonesian part of the island of Borneo. AI generated picture.

The study, conducted by Abatable, the ASEAN Alliance on Carbon Markets (AACM), and Equatorise, points to ASEAN's abundant natural resources and growing demand as key drivers. The region's carbon markets could reduce or remove 1.1 gigatonnes of CO₂ emissions annually by mid-century, contributing significantly to global environmental goals.

Key opportunities lie in REDD+ initiatives valued at $27 billion annually, blue carbon projects worth $96 billion, and biochar markets projected at $144 billion per year by 2050.

Despite contributing 7% of global voluntary carbon credits—led by Indonesia and Cambodia—ASEAN has untapped potential. The region is home to 15% of the world’s tropical forests and 35% of mangrove ecosystems, critical for carbon sequestration.

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The report emphasises the need for robust policy actions to harness this potential. These include clear carbon market regulations, international standards alignment, and improved institutional capacity. Implementing compliance mechanisms such as carbon taxes and trading systems could further drive demand.

Public awareness campaigns and streamlined Article 6 processes are also recommended to boost participation and streamline international cooperation. However, challenges such as regulatory uncertainty, limited awareness, and inadequate monitoring systems must be addressed.

With hundreds of projects in the pipeline, ASEAN is well-positioned to become a global leader in carbon markets, provided policy and operational gaps are bridged.

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