Asia Pacific Corporate Emissions Rise Despite Climate Pledges
MSCI report reveals sharp emissions growth in major Asian markets despite decarbonization commitments.
1Rising Emissions in Asia
Direct emissions from listed companies in major Asia Pacific markets surged between 2015 and 2025. MSCI’s Transition Finance Tracker highlights that Chinese firms saw a 66 percent increase, while Indian and Thai companies recorded rises of 57 percent and 45 percent respectively. These figures represent Scope 1 emissions from company-controlled assets.
2Policy and Progress Gap
While most nations have strengthened climate commitments, progress remains uneven across different regions. Linda-Eling Lee of the MSCI Institute notes that while developed markets have seen falling emissions, many emerging economies struggle to align corporate output with national pledges. Stronger policy frameworks are required to bridge this significant implementation gap.
3National Climate Commitments
China aims to cut net greenhouse gas emissions 7 to 10 percent from their peak by 2035, while expanding wind and solar capacity. India targets a 47 percent reduction in emissions intensity by 2035. Thailand has moved its net-zero deadline to 2050, aiming for a 47 percent reduction below 2019 levels.
4Corporate Decarbonization Targets
Individual firms are setting ambitious long-term goals despite the recent rise in aggregate emissions. Baosteel targets carbon neutrality by 2050, Tata Steel aims for net-zero by 2045, and Siam Cement Group plans for net-zero Scope 1 and 2 emissions by 2050. These targets vary significantly in their specific measurement methodologies.
5Regional Performance Disparities
Performance varies widely across the Asia Pacific region compared to Western counterparts. Australian companies achieved an 8 percent decline in direct emissions, while South Korean firms remained largely unchanged. In contrast, companies in France and Germany recorded the largest declines, dropping 46 percent and 47 percent respectively over the same decade.
6Methodology and Scope
The MSCI analysis tracks 2,491 listed companies with consistent data from 2015 to 2025. The study focuses specifically on Scope 1 emissions, which originate from company-owned or controlled assets. Because companies are grouped by domicile, these emissions may include operations located overseas rather than just within the company's home country.
7Technology and Cost Barriers
Solar and wind power are currently cost-competitive options for most utilities to reduce operational emissions. However, industries like cement and steel face significant cost barriers to decarbonization. The report suggests that subsidies, tax incentives, and carbon pricing are essential tools to improve the economic viability of these necessary low-carbon technologies.
8Future Policy Outlook
Rising emissions do not necessarily indicate that climate targets have been missed, as many pledges were announced recently. Future success depends on policies that scale competitive solutions and close existing cost gaps. Scaling these technologies rewards corporate readiness, which in turn expands the overall effectiveness of national climate policy frameworks.
Original article: Eco-Business — Asia Pacific Corporate Emissions Rise Despite Climate Pledges