Fairatmos had the distinct privilege of participating in the ASEAN Carbon Forum 2024, hosted by the Malaysia Forest Fund and Ministry of Natural Resources, Environment and Sustainability. This prestigious event brought together key players across the region’s carbon market to discuss emerging trends, innovative methodologies, and the future of carbon pricing in Southeast Asia.

One of the key highlights of the forum was Malaysia's impressive progress in shaping its carbon market. The introduction of a carbon pricing mechanism, which includes both a carbon tax and evolving methodologies for NBS, is a significant step forward. Malaysia is looking to establish a specialized Forest Carbon Offset (FCO) methodology, with plans to roll out seven distinct methodologies—four of which are expected to launch this year, and three more the following year. This will be accompanied by the introduction of new Monitoring, Reporting, and Verification (MRV) guidelines to ensure transparency and integrity in the country’s carbon projects.

The importance of regional collaboration was also a key topic at the forum. ASEAN countries are learning from the success of Thailand and Indonesia, both of which have implemented recognized carbon methodologies. Thailand's T-Ver and Indonesia's SRN (System Registry National) methodologies have set important benchmarks for the region. Now, ASEAN nations are working together to create solutions tailored to the unique conditions of each country's forests and communities, further strengthening Southeast Asia’s role in global climate efforts. This collaboration seeks to address baseline and additionality gaps that global standards may not fully account for, ensuring that regional carbon projects meet both local and global needs.

The push for an ASEAN Common Carbon Framework was also a major point of discussion. Led by organizations such as the Malaysia Carbon Market Association (MCMA), the Indonesia Carbon Trade Association (IDCTA), and the ASEAN Alliance on Carbon Markets (AACM), this initiative seeks to harmonize national carbon markets across the region. By aligning standards and practices, Southeast Asia can better integrate into the global carbon market and amplify its impact on climate action.

Despite these advancements, one challenge that remains is the question of demand for carbon credits in the region. During a panel discussion, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) was highlighted as a potential growth area, with a projected market value of $361 million USD over the next five years. However, there are currently no active projects in Southeast Asia under this scheme, presenting a clear opportunity for the region.

The carbon market in Southeast Asia is experiencing significant growth, with countries actively developing frameworks and policies to support both compliance and voluntary markets. At the forum, our CEO, Natalia Rialucky, had the privilege to share Fairatmos' journey in developing one of Indonesia's first community-based carbon mangrove restoration projects. This initiative highlights our dedication to Nature-Based Solutions (NBS) as a key strategy for addressing climate change while empowering local communities. The project is monitored using our tool, Atmoswatch, and it was demonstrated during the forum to showcase its real-time features. Interested in building carbon projects with high integrity and transparency from Us? Explore Atmoswatch here.