Carbon Pricing Potential in East and South Asia

Carbon pricing is key for cost-effective emission reductions and can play a major role in driving the transition to a climate-neutral economy. Still, the vast majority of global greenhouse gas emissions remain unpriced. For carbon pricing to succeed in individual jurisdictions, a detailed and methodical understanding of their circumstances is required. This report provides the results of an in-depth literature review of over 500 publications, which forms the foundations of an analytical framework to survey these circumstances along political, legal, economic, technical and regional dimensions. The different dimensions are deeply intertwined, as features of an economy can operate through multiple channels simultaneously. Using a variety of indicators and variables, the report offers a methodology for the assessment of carbon pricing potential, with the view to do so for several Asian jurisdictions, and helps contribute to the understanding of the relevant conditions for carbon pricing readiness in a broader context.