Work

Bridging the Energy Gap in ASEAN : Scaling Green Finance and Carbon Markets for a Sustainable Transition

Year: 2026

Type: article

Abstract: ABSTRACT Fragmented regulations, limited access to green finance, and underdeveloped carbon markets impede ASEAN's clean energy transition. This paper assesses global best practices, including the EU Emissions Trading System (EU ETS), the Carbon Border Adjustment Mechanism (CBAM), and green bond standards, through comparative policy analysis, evaluating their suitability for ASEAN's context. By examining specific national cases from Indonesia, Singapore, and Thailand, we identify critical opportunities for enhancing institutional capacities, harmonizing regulatory frameworks, and scaling climate‐aligned investment. A strategic roadmap is developed, focusing particularly on carbon pricing mechanisms, blended finance solutions, and digital innovations such as blockchain and artificial intelligence for regional energy market integration. Findings underline the necessity of coordinated regional carbon markets, standardized green finance instruments, and digitally driven transparency tools. This integrated approach offers ASEAN a pragmatic pathway to accelerate its low‐carbon transition, ensuring both economic resilience and regional cooperation. Future research is recommended to explore socioeconomic impacts on vulnerable sectors and strategies for operationalizing regional carbon pricing across ASEAN's diverse political economies. This article is categorized under: Policy and Economics > Energy Transitions

Source: Wiley Interdisciplinary Reviews Energy and Environment

DOI: 10.1002/wene.70020

Authors: Ohn Zin Lin, Dagmar Juchelkova, Libor Štěpanec, Hnin Yee Aye, Kharisma Bani Adam

Institutions: VSB - Technical University of Ostrava, Telkom University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Climate action, Partnerships for the goals, Affordable and clean energy

Open Access status: hybrid

Estimated APC paid: $3,950