ECOSPERITY WEEK: Asia-Pacific carbon market optimism contrasts with EU caution: VCMI

Asia-Pacific views climate action and carbon markets as an economic opportunity despite regulatory costs, contrary to the EU seeking delays in emissions regulations and being wary of aggression toward climate action amid competitiveness concerns, Mark Kenber, executive director of the Voluntary Carbon Markets Integrity Initiative, told Platts, part of S&P Global Energy, in an exclusive interview during Ecosperity Week 2026 in Singapore.

"It is quite astonishing to hear the level of energy and the genuine belief that addressing climate change and a green economy really is an opportunity. And almost every country (in Asia-Pacific) sees that in one way or another," Kenber said.

In contrast, concerns about competitiveness and economic sluggishness have led some companies in Europe to seek delays in emissions regulations or additional allocations, amid the Middle East crisis and elevated energy costs, he said.

Regional momentum in carbon markets

The Coalition to Grow Carbon Markets, a government-led initiative co-chaired by Singapore, Kenya, and the UK, recently added Indonesia as a member.

The coalition aims to provide guidance, regulation, incentives and consistency across countries on how companies should use, report and disclose carbon credits within their broader decarbonization strategies.

"Indonesia was the most recent to join. Other countries in the region are talking about joining. They see an opportunity, whether it's in carbon markets, but more importantly, in clean energy and clean technology," Kenber said.

He noted that China is one of the world's leaders in clean technology development, with significant technological advances across the Asia-Pacific region, alongside a real understanding of the impacts of climate change.

VCMI complements SBTi's gap

VCMI published Scope 3 action guidance in 2025, recognizing that many companies struggle to meet Scope 3 emissions reduction targets.

"The gap between Scope 3 emissions and targets are roughly equivalent to Japan's 2022 emissions and is expected to grow fivefold, reaching twice the emissions of the EU by 2030," Kenber said.

VCMI's approach complements SBTi by providing a pathway for companies that cannot meet their targets to use high-integrity carbon credits to bridge the gap while investing in future emissions reductions, rather than hoping for the best and missing targets in 2030, he added.

Local standards ownership emerges

An important shift occurring in the last few years is the development of carbon standards, rules and claims frameworks in countries through consultation with businesses and NGOs in the public domain, rather than being set primarily by NGOs based in Europe and North America, Kenber said.

This local ownership makes standards much more palatable for companies and allows them to respond to local circumstances, he added.

Singapore is developing a tiered claims framework that builds on VCMI's guidance but recognizes that VCMI's carbon-integrity claims might be achievable only by a small number of companies, Kenber said.

Kenber added that VCMI is working with the Singapore Sustainable Finance Association to develop guidance for companies.

Government clarity remains key

Despite regional differences in attitudes, companies across all markets are waiting for government-led guidance on how to use carbon credits rather than relying solely on voluntary standards, as regulatory clarity remains the key barrier to unlocking corporate demand, Kenber said.

VCMI conducted market research with companies in 20 countries last year and found that while companies still see carbon credit as an important part of their climate strategies, they want clear, consistent and stable guidance from governments.

"Companies say, what we really want is for the government to tell us. At the end of the day, for all the voluntary initiatives like VCMI or SBTi, when governments say this is how it works, that's how it works," Kenber said.

The Coalition to Grow Carbon Markets is a direct response to companies seeking clarity and certainty, aiming to provide consistent guidance across member countries.

Kenber said VCMI works closely with the Integrity Council for the Voluntary Carbon Market, which focuses on supply-side integrity and VCMI covers demand-side integrity. VCMI's guidance explicitly recommends that companies use CCP-labeled credits from ICVCM.

"We are very closely linked. We work very closely together and our guidance is supposed to be mutually supportive," Kenber said.

While only a few have made public-facing carbon-integrity claims under VCMI's Claims Code, consulting firms report that several companies are following the guidance privately but view public claims as risky amid ongoing reputational concerns about carbon markets, Kenber said.

According to Kenber, VCMI's basic guidance follows four steps: demonstrate good corporate climate citizenship with targets and inventory; show meaningful progress toward targets; buy high-integrity carbon credits; and disclose transparently.