The countries look set to emulate China, Japan, South Korea, Australia and New Zealand in working on plans for new carbon pricing mechanisms – a trend that could see the Asia-Pacific region challenge the EU as the world’s leading carbon trading hub by the end of the decade. South East Asia could emerge as the world’s latest carbon trading hub, after reports emerged suggesting that the governments of both Thailand and Vietnam were considering plans to introduce official carbon trading schemes.

According to reports in the Bangkok Post earlier this month, the government will formally consider next year plans for carbon trading legislation currently being developed by the Thailand Greenhouse Gas Management Organization (TGO).

Prasertsuk Chamornmarn, TGO deputy executive director and acting executive director, told the paper the proposed legislation would be considered by a national committee on climate change, chaired by the prime minister, before being put before parliament.

The draft proposals raise the prospect of a legally-binding carbon trading scheme coming into effect from 2020, when Thailand expects to be part of a new international climate change treaty currently being negotiated as part of long-running UN climate change talks.

Meanwhile, analyst firm Point Carbon quoted a Vietnam government official as saying that the country is preparing to set a carbon intensity reduction target of between eight and 10 per cent for 2020, which is likely to be supported by a carbon trading scheme that could come into effect from 2018.