Jakarta, 19 February, 2024 – The ASEAN Alliance on Carbon Market, a first private sector led body to advocate for cross-border efforts in the areas of carbon market development, recently held, jointly with the ASEAN-BAC Indonesia, an executive roundtable on the issues of Voluntary Carbon Markets across ASEAN and to support implementation of compliance markets in the region. Supported by ASEAN BAC; the Indonesian Chamber of Commerce and Industry (KADIN Indonesia) and Equatorise Advisory, this roundtable is attended by 14+ company members including Abatable, Rimba Makmur Utama, Fairatmos, AirCarbon Exchange, Equatorise, many more, to identify pain points and seize opportunities in the region from three lenses: (i) supply & generation; (ii) market infrastructure; (iii) demand & assurance.

The ASEAN region is taking bold steps to establish itself as a leader in carbon credit generation and trading. In the year of Indonesia’s ASEAN chairmanship, the ASEAN Business Advisory Council (ASEAN-BAC) had 5 priority programs and launched 8 legacy programs in September 2023. One of the legacy projects was ASEAN Carbon Centre of Excellence (CCoE) that has created ASEAN Alliance on Carbon Markets (AACM). ASEAN Alliance on Carbon Markets (AACM) is a continuation and a key component of the Carbon Centre of Excellence (CCoE), marking a significant milestone in its efforts to leverage this powerful climate financing tool.

The AACM will foster a regional ecosystem and act as a focal point for international partnerships, with activities including capacity building and technical Assistance. This pioneering alliance acts as a hub for regional collaboration and international partnerships, offering capacity building and technical assistance to stakeholders across the ecosystem.

Bernardino M. Vega

the Alternate Chair of ASEAN Business Advisory Council (ASEAN-BAC) Indonesia; Vice Chairman of KADIN Indonesia, believes that ASEAN is a unique region with its diversity and various progress of each country.

He added “ASEAN leadership is going to be impactful in what we are doing now. ASEAN has a young population with new ideas of a carbon market that need to be addressed. this executive hopefully can contribute to new ideas and focus on digitalization and sustainability.”

Dharsono Hartono

the Permanent Chair of AACM; CEO of PT Rimba Makmur, emphasises the vision of AACM

“With AACM, we aim to promote scaling Voluntary Carbon Markets across ASEAN and to support the implementation of compliance markets. AACM is also the first private sector-led body to advocate for cross-border efforts in the areas of carbon market development. The alliance fosters a regional ecosystem and acts as a focal point for international partnerships, with activities including capacity building and technical assistance.”

Steven Marcelino

Deputy Lead for International Affairs at AACM; Managing Partner and CEO of Equatorise Advisory

“2024 is set to be a determining year for the future of the market, tied to whether confidence in carbon credits can be restored. Doing so could drive companies to purchase billions of carbon credits annually, elevate prices over $200 per ton by 2050 and build a market valued at over $1.1 trillion annually by 2050, according to BloombergNEF’s Long-Term Carbon Offsets Outlook 2024 report. Southeast Asian economies can leverage carbon markets as a powerful climate financing tool.”

Valerio Magliulo

CEO and Co-founder of Abatable, mentioned the carbon market opportunity and its benefits for Southeast Asia

“We can accelerate progress towards NDC by leveraging the Voluntary Carbon Market. Leverage Article 6 to go beyond an NDC by applying corresponding adjustments, and potentially driving direct government revenue from authorising these transfers. Regardless of the avenue, VCM or article 6, carbon markets contribute to GDP growth, improve local livelihoods, health, and contribute to adapting to the effects of climate change.

Natalia Rialucky

Deputy Lead of AACM; Founder and CEO of Fairatmos, addressed

“Southeast Asia has 1% of the world total area but 30% of the global carbon offset supply by 2030 and AACM platform allows dialogue within the country members and emphasises how to shape a certain regulation across the market. Despite the challenges on the supply side, the private sector is growing interested in carbon.”

Thomas McMahon

Co-CEO and Co-Founder of ACX, added

"Political will and policy alignment are pivotal in shaping the future demand for carbon markets. The concept of having an interoperable network of ASEAN carbon exchanges opens doors to a unified order book and enhanced access to buyers and sellers—fostering a more robust and interconnected ASEAN and by extension Global, carbon market landscape."

Closing the session, Björn Fondén

International Policy Advisor of IETA

“ASEAN as a region is facing numerous challenges, but also holds immense opportunities. Carbon markets, including compliance, voluntary and international markets under Article 6 of the Paris Agreement, can support the low-carbon transition and unlock international finance and advance sustainable development.” “There’s a reshaping of the foundation for the next-level new market for the next year.”

This roundtable marks a significant step forward for the AACM's mission to promote scaling Voluntary Carbon Markets across ASEAN and support the implementation of compliance markets. By bringing diverse stakeholders together to address critical challenges and seize untapped potential, the roundtable paves the way for a more sustainable and prosperous future for Southeast Asia.

About ASEAN Alliance on Carbon Markets (AACM)

Under Indonesia’s chairmanship of ASEAN-BAC in 2023, the ASEAN Alliance on Carbon Markets (AACM) aims to promote scaling Voluntary Carbon Markets across ASEAN and to support the implementation of compliance markets. AACM will be the first private sector-led body to advocate for cross-border efforts in the areas of carbon market development. AACM will foster a regional ecosystem and act as a focal point for international partnerships, with activities including capacity building and technical assistance.

About ASEAN Business Advisory Council (ASEAN-BAC)

Launched in April 2003, ASEAN-BAC was set up with the mandate to provide private sector feedback and guidance to boost ASEAN’s efforts toward economic integration. Aside from providing private sector feedback on the implementation of ASEAN economic cooperation, the Council also identifies priority areas for consideration by the ASEAN Leaders. Accordingly, ASEAN-BAC’s activities primarily focus on reviewing and identifying issues to facilitate and promote economic cooperation and integration.

About Indonesian Chamber of Commerce and Industry (KADIN)

KADIN is the umbrella organisation of Indonesian business chambers and associations. KADIN is focused on all matters relating to trade, industry, and services, and is highly committed to tapping potentials and synergies of the national economy, offering a strategic forum for Indonesian CEOs. It is privately funded, hence an independent spokesperson of private sector interests. It is also the only nationwide business organisation mandated by Law No. 1/1987 to speak on behalf of private businesses, maintaining a privileged liaison to Government Officials and covering all relevant sectors. 34 regional Chambers (KADIN Daerah) and 514 district branches ensure national coverage. Because of this huge network, KADIN Indonesia is the preferred partner for foreign companies initiating their engagement in Indonesia to become a member of KADIN Indonesia.

About Equatorise

Equatorise is an international advisory house supporting Indonesian corporates and family offices to seize opportunities in the UK and the EU as well as helping UK/EU based companies and institutions to unlock values and thrive in Indonesia, the rising powerhouse in the Indo-Pacific region. We help our clients to navigate disruptions from the Covid-19 pandemic and to discover opportunities from the twin transformation of the decade – stemming from digital transformation and sustainable transition into a net-zero post-pandemic future.

For more information, please contact:
Bioantika Manurung
Executive Secretariat of AACM
E: [email protected]

Rafkha Gibrani
Executive Secretariat of AACM
E: [email protected]