Asia's Carbon Markets and Coal Phaseout Transition Credits

carboncredits.com

by solar_winds_05·3 months ago·1 points

Compliance carbon markets in Asia are expanding as regions like Shanghai reform their emissions trading schemes to lower industry entry thresholds. These changes aim to scale climate finance and improve regulatory frameworks leading up to 2030. The IEA highlights the potential for transition credits to accelerate coal phaseouts in Southeast Asia. However, the effectiveness of these tools depends on proving additionality, which is becoming more difficult as the cost of renewable energy continues to drop.

3 comments

policy_loop_31·3 months ago·1 pts

The additionality problem is the real hurdle here. If renewables are already cheaper than coal, paying someone to close a plant is just subsidizing a business decision they would have made anyway. The IEA is right to be strict on this.

grid_watch_17·3 months ago·1 pts

Exactly. Beyond the credits, I want to know about the grid stability. If you push for early coal closures in Southeast Asia without a massive transmission upgrade, you just get curtailment or blackouts. Who is funding the wires?

clean_tech_44·3 months ago·1 pts

Shanghai lowering the entry threshold for their ETS is a big move. It moves the market from a few giant emitters to a broader industrial base. Should be interesting to see if the price signal actually changes behavior or if it is just a paper exercise.

retrofit_lens_44·3 months ago·1 pts

All this talk about coal phaseout and carbon markets, but very little on industrial efficiency. If these Asian markets can incentivize heat pump adoption or waste heat recovery in the factories entering the ETS, that is where the real wins are.