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The Solutions for ASEAN One (SFA1) research project is an initiative of the University of New South Wales  ASEAN  Society  (UAS) in partnership  with  UNSW  UNOVA. It unpacks  the challenges for ASEAN as a region in leveraging technology and digital solutions to achieve economic development and empowerment in order to deliver positive social impact to ASEAN Member States’ governments, businesses, and people.

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Tradable permits and carbon taxes are two market-based instruments commonly considered by policymakers to regulate pollutions. While a tax is fixed, predetermined by authorities, the uncertain permits price is driven by market dynamics, fluctuating with the prices of natural gas and electricity. Both instruments offer firms different incentives for adopting clean technologies. This paper explores the optimal investment timing when a coal-fired plant owner considers introducing clean technologies in face of these two policies using a real options approach. We find that tradable permits could effectively trigger adopting clean technologies at a considerably lower level of carbon price relative to a tax policy. Higher levels of volatility in permit prices are likely to induce suppliers to take early actions to hedge against carbon risks. Thus, offset and other price control mechanisms, which are designed to reduce permit prices or to suppress prices volatility, are likely to delay clean technology investments.

A successful development agenda requires inclusive partnerships — at the global, regional, national and local levels — built upon principles and values, and upon a shared vision and shared goals placing people and the planet at the centre. Many countries require Official Development Assistance to encourage growth and trade. Yet, aid levels are falling and donor countries have not lived up to their pledge to ramp up development finance. Due to the COVID-19 pandemic, the global economy is projected to contract sharply, by 3 per cent, in 2020, experiencing its worst recession since the Great Depression.

Strong international cooperation is needed now more than ever to ensure that countries have the means to recover from the pandemic, build back better and achieve the Sustainable Development Goals.

Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries