The following is an excerpt from an op-ed written by Dr. Kyung-wha Kang, Asia Society President and CEO, and published in the Hindustan Times.

Greenhouse gas (GHG) emissions reduction is a collective imperative for Asia, a region increasingly facing the adverse impacts of climate change. As Asian economies chart their development pathways, they are finding innovative ways to align economic and climate imperatives. India has a unique opportunity to steer regional dynamics and influence climate ambition.

Emission Trading Systems (ETSs), a set of policies to control the amount of total emissions through a market mechanism, have emerged as powerful tools worldwide to drive down emissions while generating vital finance for decarbonising power and industrial sectors and supporting vulnerable communities. The Indian government deserves recognition for the upcoming launch of its Carbon Credit Trading Scheme (CCTS), which is a significant step forward in its decarbonization journey. The scheme has the potential to become one of the largest ETSs globally.

As India introduces and tests its CCTS, it stands to benefit from lessons learned by key carbon pricing systems around the world, including the European Union (EU) ETS and South Korea’s K-ETS, launched in 2015 as the first nationwide scheme in East Asia. Three key considerations could shape the long-term effectiveness of the policy and reinforce India’s position as a climate leader in the Global South.

Read the full op-ed here.