Carbon Market Transformation in Asia Pacific Countries for Sustainable Economic Development: A Systematic Literature Review

Carbon markets play a crucial role in supporting sustainable development through environmentally friendly technologies, energy conservation, and efficient resource management. This study employs the PRISMA method to analyze 30 studies from Scopus and Web of Science databases, focusing on factors influencing carbon market development in Asia-Pacific. The findings reveal that effective energy policies, such as carbon taxes and clean energy pricing, facilitate the transition to clean energy and decarbonization. Integrating carbon markets with the energy and financial sectors, alongside adopting innovative technologies like new energy vehicles, renewable power plants, and biofuels, accelerates carbon emission reductions. Carbon price volatility highlights the need for price stabilization policies and connectivity among markets. Post-pandemic economic recovery focused on sustainability offers opportunities to accelerate clean energy transitions and achieve Paris Agreement targets. Fair carbon pricing and robust carbon market governance stimulate green innovation and significantly reduce emissions. These findings provide critical implications for policymakers, carbon market practitioners, and researchers, particularly in the Asia-Pacific region. High-emission countries must expedite renewable energy transitions and strengthen emission reduction regulations. Regional collaboration is essential to develop carbon markets as strategic instruments for addressing climate change and supporting sustainable economic development