Greenhouse gas emissions in Southeast Asia are increasing rapidly. Indonesia’s carbon dioxide (CO2) emissions from fossil fuels and industry totalled 812 million tonnes in 2024, up from 281 million in 2000. Emissions from the Philippines and Viet Nam are smaller, at 175 million tonnes and 371 million tonnes, respectively, but both have increased dramatically over the last 20 years. Emissions in the Philippines have almost doubled over the period, while those in Viet Nam have increased almost seven-fold, driven primarily by sustained economic growth and a sharp increase in coal use in the energy mix. These trends highlight the urgent need to deploy effective economic frameworks and policy instruments to support the efforts of countries in the region in achieving their nationally determined contributions under the Paris Agreement.
Southeast Asian countries have been exploring effective ways of introducing carbon pricing in their economies. In 2023, Indonesia launched IDXCarbon, the country’s first official carbon exchange. The Philippines is evaluating the feasibility of introducing an emissions trading system (ETS). In VietNam, the Ministry of Agriculture and Environment announced its plan to pilot an ETS starting in June 2025, with the target of full operation by 2029. This brief “Implementing Carbon Pricing in Southeast Asia” published by International Institute for Sustainable Development reports on efforts to introduce carbon pricing in Indonesia, the Philippines, and Viet Nam. It summarises the current status of carbon pricing, including the most recent developments; discusses the challenges; and highlights the opportunities for making progress.
Access the brief here