Carbon management in Asia Pacific will be driven by new regulatory norms

Carbon management in Asia Pacific will be driven by new regulatory norms

Greentech Lead Asia: Several factors such as increased
regulatory needs, awareness of climate change, and demand for disclosure of
non-financial information will drive carbon management in Asia-Pacific.

Ovum recommends enterprises to invest early in carbon and
energy management tools to prepare for future regulation, whereas vendors will
need to provide solutions that are flexible and adaptable, and support future
business initiatives.

According to Ovum, governments in the Asia-Pacific region
are under pressure to reduce air pollution, are implementing new regulations to
reduce and mitigate the effect of greenhouse gas emissions.

Despite all these initiatives, China and India are still
the biggest emitters of CO2 in the world.

Australia passed the Carbon Farming Initiative (CFI) and
the Clean Energy Future package containing 19 bills. The CFI scheme has now
commenced and is operational, while a carbon pricing mechanism will be
introduced from July 2012 under the Clean Energy Future package.

China is planning to launch pilot carbon emissions
trading schemes by 2013 in the cities of Beijing, Chongqing, Shanghai, and
Tianjin, and in the provinces of Hubei and Guangdong, and establish a national
carbon trading platform by 2015. China plans to implement a carbon tax by 2013.

The Thai government is planning to implement policy for
green growth, pricing, and legal tools to help move toward a low-carbon and
environmentally friendly economy.

Taiwan has proposed a Greenhouse Gas Reduction Bill and
an Energy Tax Bill. The government plans to set up a national cap and trade
system under the Greenhouse Gas Reduction Act, while the Energy Tax will
provide consumers financial incentives for energy conservation and carbon
reduction in day-to-day activities, and the adoption of high efficiency,
low-carbon equipment and products.

“Increased infrastructure investment has helped China to
sustain its economic growth during difficult times. However, this increase,
along with rapid urbanization, will further increase the country’s CO2
emissions,” said Surupa Mahto, Ovum analyst and author of the report.

The implementation of carbon reduction measures is
challenged mostly by lack of capital, lack of knowledge, lack of strong policy
frameworks, and uncertainty about the market forces and government action on
climate change.

New policies and regulations to mitigate climate change by
reducing carbon emissions are likely to become critical priorities on the
environment and economic development agendas of Asia-Pacific countries.

[email protected]