PMI Regional Programs
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Program Overview
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The East Asia and Pacific (EAP) region is pivotal to global climate outcomes, given its dual role as a major emitter and home to some of the world's most climate-vulnerable populations. Rapid economic growth has driven both development and significant increases in greenhouse gas emissions, especially from the energy sector. While EAP countries have made strides in submitting long-term strategies and net zero commitments, current actions often fall short of the ambition needed to meet the Paris Agreement's targets. As EAP governments transition from incremental to transformational climate action, there is growing recognition of the need for innovative solutions such as carbon pricing and markets to help bridge the gap between current efforts and the scale of action required.
Despite notable progress—such as the launch of emissions trading systems (ETS) and carbon taxes in several countries—EAP nations face challenges including differing levels of policy readiness, technical capacity, and institutional frameworks. The region's diversity creates both barriers and opportunities for harmonization, peer learning, and joint capacity-building. Regional collaboration, as seen in ASEAN's carbon neutrality initiatives and the establishment of the ASEAN Common Carbon Framework, can accelerate the adoption and effectiveness of carbon pricing.
Objective and Activities
The EAP Regional Program provides targeted technical and capacity-building support to address cross-country bottlenecks in carbon pricing and carbon market implementation and strengthen regional cooperation.
The program focuses on two mutually reinforcing activities:
Activity 1 – Strategic and Action Framework for Carbon Pricing and Markets
This activity develops a shared regional framework to identify policy, institutional, and technical bottlenecks and to prioritize high-impact actions at both country and regional levels. Building on existing analytical work, it supports the preparation and refinement of country-level Carbon Pricing and Market Action Plans and aggregates findings into a regional strategic framework that identifies opportunities for harmonization, collaboration, and operational scale-up.
Activity 2 – Regional Cooperation and Technical Convening for Carbon Pricing and Markets
This activity strengthens regional cooperation and implementation readiness through targeted technical convenings, peer learning, and engagement with carbon market actors. It supports capacity building on practical implementation topics—such as MRV systems, registries, crediting approaches, and transaction readiness—and facilitates dialogue between governments, development partners, and market participants to improve regional readiness for participation in domestic, voluntary, and Article 6 carbon markets.