Northeast Asia carbon markets and trade connections

The Asia Society Policy Institute (ASPI) and the International Centre for Trade and Sustainable Development’s (ICTSD) report, Northeast Asia Carbon Markets and Trade Connections, focuses on carbon pricing and the linking of carbon pricing systems as a potential catalyst for increased trade relationships, and explores how the benefits from linking can be heavily impacted by trade relationships and competitiveness concerns within the economies of China, Japan, and Korea. The report introduces the different approaches to carbon pricing and linking currently being used by the three countries, explains the benefits and challenges of linking different carbon pricing systems, and proposes ways to deepen integration of carbon pricing and trade policies to promote regional carbon market linkage as well as increase trade between all three countries.