ASEAN, EU Strengthen Cooperation on Carbon Pricing and Markets to Accelerate Climate Action

ASEAN, EU Strengthen Cooperation on Carbon Pricing and Markets to Accelerate Climate Action

Bandar Seri Begawan, 21 May 2026 - ASEAN and the European Union (EU) are strengthening cooperation to accelerate climate action, convening in Brunei Darussalam on 20-21 May 2026 for a regional workshop on carbon pricing and carbon markets - key tools to cut emissions and unlock sustainable investment.

The workshop, co-organised by the EU through the Technical Assistance Facility to the Green Team Europe Initiative (TAF-GTEI) project, the Brunei Climate Change Office, the ASEAN Secretariat, and International Institute for Sustainable Development (IISD), brings together government officials, technical experts and regional partners to advance dialogue and cooperation on market-based climate solutions. The initiative follows from the first ASEAN-EU Ministerial Dialogue on Environment and Climate Change, held in Langkawi, Malaysia, in September 2025.

As ASEAN countries move toward low-carbon and climate-resilient development, carbon pricing is gaining momentum across the region. Several ASEAN Member States are developing or implementing instruments such as emission trading systems or carbon taxes. Most ASEAN countries are also considering engaging in international carbon markets under Article 6 of the Paris Agreement. The growing regional interest in carbon pricing and international carbon markets creates opportunities for stronger regional coordination and capacity-building.

Over two days, participants are exchanging experiences and approaches to developing domestic carbon pricing instruments - exploring how these can support national climate targets and broader economic priorities. The workshop also aims to strengthen readiness for participation in international carbon markets under Article 6 of the Paris Agreement by examining legislative and policy frameworks, governance and institutional arrangements, strategic planning, monitoring, reporting and verification systems and carbon registry infrastructure, project pipeline development and capacity building needs.

A key highlight of the workshop is the exchange of lessons learned from the EU Emission Trading System, the world's longest-running carbon pricing system, offering practical insights into ETS design, implementation and governance that may help inform ASEAN's evolving approaches.

"Carbon pricing is one of the most effective tools to drive emissions reduction while mobilising investment for the green transition," said Maja Alexandra Dittel, Deputy Head of the Task Force for International Carbon Pricing and Markets Diplomacy, European Commission, during her keynote address. "Through our cooperation with ASEAN, we aim to share practical experience and support the development of credible, transparent, and well-functioning carbon markets in the region."

"As a region highly vulnerable to climate change, we have the opportunity to link together and call for greater access to Means of Implementation, necessary for bringing forward greater climate action in ASEAN." said Dr Nor Imtihan Binti Haji Abdul Razak, the Permanent Secretary of the Ministry of Development of Brunei Darussalam and the Brunei Darussalam focal point to the ASEAN Senior Officials on Environment in her opening remarks. "On this end, we extend our appreciation to the European Union for their support in realizing the carbon market potential of ASEAN's rich biodiversity, tropical forests, peatlands and mangrove ecosystems. Brunei Darussalam continues to welcome and stands ready to facilitate ASEAN-EU exchanges in line with our role as ASEAN-EU coordinator from 2024 to 2027."

As ASEAN and the EU are preparing to commemorate 50 years of partnership in 2027, the workshop contributes to the strengthening ASEAN-EU cooperation on climate change, one of the priority areas of this partnership. It is linked to further efforts to align policies, strengthen technical capacity, and mobilise investment for low-carbon development. The outcomes of the workshop will inform follow-up initiatives, including further policy dialogue, regional assessment, and technical support under TAF-GTEI.

As interest in carbon markets continues to grow, closer ASEAN-EU collaboration will be a key to ensuring these mechanisms deliver both credible climate outcomes and economic opportunity.