Carbon pricing is gaining traction in Asia-Pacific, but prices are “critically low” and coverage remains a concern in most markets, a new report from BMI, a unit of Fitch Solutions, has found. Six national carbon taxes and emission trading systems are already in force, as well as 10 sub-national carbon pricing instruments, mainly in mainland China. A further 11 pricing schemes are either in development or under consideration. With the exception of New Zealand’s emissions trading scheme, carbon price levels are critically low, the report noted, adding that low prices can be beneficial when carbon pricing instruments are first introduced, giving market participants time to learn and adapt. However, it is hard to justify prices at their current levels, especially in developed markets like South Korea and Japan. Estimates of appropriate carbon pricing levels vary, but the IMF has argued that, by 2030, prices will have to rise to at least US$25-50/tCO2e in emerging markets and US$75/tCO2e in developed markets.