Asia’s carbon markets are entering early implementation in 2026, but fragmentation remains a structural constraint. (Photo: iStock)
Asia’s carbon markets are entering a decisive phase in 2026, with emissions trading systems (ETS), carbon taxes, and Article 6 cooperation agreements moving from policy design toward early implementation. Governments across the region are experimenting with different models to price emissions, attract low-carbon investment, and comply with international climate commitments.
Despite current momentum, analysts told a Jan. 22 S&P Global webinar that structural fragmentation continues to limit liquidity and slow the emergence of a fungible regional market.
