Advancing ‘Net Zero Competition’ in Asia-Pacific under a dynamic era: a comparative study on the carbon neutrality policy toolkit in Japan, Singapore and Hong Kong

Abstract

The net zero strategy has created a global competition for carbon finance innovation, with over 50 countries and regions aiming for carbon neutrality by 2050 or 2060. This paper provides a preliminary comparative study of carbon neutrality policy instruments in Japan, Singapore and Hong Kong SAR, China: three critical and distinct economies in the Asia-Pacific region. The study examines policies in six categories that support carbon neutrality and compares them based on political economy and market features. The findings reveal that Japan has a rather diverse policy matrix, while Singapore has made rapid progress in carbon finance in a controversial political economy. Hong Kong’s renewable energy policies use a multifaceted approach that emphasizes both carbon emission reduction and environmental quality improvement. Although Hong Kong aspires to become a centre for green finance, it currently lags behind Singapore in this area. The study sheds light on the development and implementation of emerging policies related to carbon neutrality in Asia-Pacific region.