Carbon Border Taxes, Supply Chains, and Compliance: ACT Group charts Asia Strategy

Sustainability expert John Davis recently took charge as Managing Director for Asia Pacific at the ACT Group, signalling a strategic push to deepen its regional footprint and drive climate impact across one of the world’s most critical decarbonisation markets.

With over two decades of experience in environmental markets, Davis brings a strong pedigree in sustainability solutions. He most recently served as Interim CEO at South Pole, where he led the company through a major restructuring and funding round. Over a 10-year tenure at South Pole, he held key leadership positions including Global Commercial Director and APAC Director, steering the firm’s regional expansion and strategic growth.

“Asia Pacific is a crucial region for global decarbonisation, and ACT Group is uniquely positioned as the largest end-to-end solution provider here,” Davis told CarbonWire in an exclusive interaction. “Having worked in Asia Pacific for over five years, I’m excited to lead this company making a meaningful impact.”
Davis highlighted ACT’s combination of digital capability, deep trading expertise across carbon and renewable energy markets, and a growing focus on primary carbon development. He aims to build on this foundation, scaling operations in the region and supporting the shift from voluntary to compliance carbon markets: an area where his experience is particularly relevant.

Focusing on Impactful Solutions

ACT Group offers a broad suite of climate solutions, but Davis identified three key areas of focus for the region. The first is ACT’s Decarbonization Platform designed to simplify decarbonisation across supply chains, a tool that resonates in Asia Pacific, the world’s manufacturing hub.

The second is ACT’s core business in renewable energy and carbon certificates. The third is helping clients navigate the transition to compliance-led decarbonisation, particularly in light of evolving regulatory frameworks such as the EU’s Carbon Border Adjustment Mechanism (CBAM).

“Asia Pacific is rapidly evolving,” Davis noted. “Our in-house expertise enables us to support companies through this complex transition.”

Demystifying Carbon Credits

While carbon credits may seem abstract to the uninitiated, Davis explained their growing significance. “ACT has traditionally worked in compliance markets, starting with the EU Emissions Trading Scheme. Today, we operate across both voluntary and compliance markets and are committed to transparency and integrity, values that have become even more important over the last 12–24 months.”

As regional compliance schemes gain momentum in countries such as Singapore, Japan, and Australia, ACT supports both project development and certificate trading, adhering to international standards. The company works closely with rating platforms like BeZero and Calyx Global, while aligning to standards like ICROA and ICVCM, and employing internal due diligence to ensure every carbon unit it meets industry standards.

ACT also operates as both a project developer and a trader. “We’re developing new carbon reduction projects, especially in Singapore under Federico di Credico’s, Chief Sustainability and Innovation Office, leadership, and we also source units for clients as needed,” Davis said. “We hold proprietary positions and offer brokerage services depending on client requirements.”

Compliance, Co-Benefits, and Biodiversity

With the global shift towards compliance, Davis believes the concept of blended carbon credits may gain traction, though cost remains a major driver. In compliance markets, buyers often seek the lowest-priced credits, but Davis pointed out that there are exceptions.

“In Australia, for instance, companies are willing to pay a premium for credits with strong co-benefits,” he said. “In voluntary markets, premiums have long existed for credits with social or environmental benefits, particularly biodiversity.”

Although a robust global biodiversity market does not yet exist, interest is growing. Third-party raters like Calyx and BeZero are beginning to play a larger role in valuing co-benefits — an area Davis sees expanding in future.

One persistent challenge in carbon markets is transparency. Many transactions remain private, limiting price visibility and undermining market confidence.

Davis believes this will change as volume and participation increase. “In recent years, we saw significant interest from major buyers in Asia Pacific, which brought some liquidity and pricing transparency,” he said. However, as market conditions softened over the past year or two, newer entrants have struggled to gain clarity.

To counter this, ACT is focused on education and facilitation. “We help clients understand their carbon footprint, the available solutions, and what’s required to meet future compliance obligations,” Davis added. “Decarbonisation will become a trade necessity, and ACT’s role is to support visibility, trust, and liquidity.”

Positioning Asia Pacific at the Centre of Climate Action

Historically, ACT Group’s operations have been concentrated in Europe and North America, with Asia Pacific serving primarily as a supply source. But that dynamic is changing rapidly.

“Quite simply, the world cannot decarbonise without Asia Pacific,” Davis stated. “We see the region’s role evolving from that of a supplier to a leader, especially as countries like China make significant progress in electrification and other green technologies.”

While Asia Pacific currently accounts for a smaller portion of ACT’s business, Davis believes it should eventually reflect the region’s contribution to global emissions, approximately 50%. “That’s our ambition,” he said.

Singapore is emerging as both a regional and global hub for carbon market facilitation, including under Article 6 of the Paris Agreement. ACT is also expanding elsewhere in the region, recently establishing an office in Tokyo and eyeing strong growth in markets like Thailand and Indonesia.

“With the rise of carbon border taxes and shifting trade dynamics, decarbonisation is becoming a competitive imperative for the region’s industrial giants,” Davis noted.

Navigating Complexity in a Diverse Region

Asia Pacific’s diversity, across governance, capacity, and priorities, poses unique challenges. But Davis sees clear patterns emerging. “Carbon flows often mirror traditional fossil fuel flows. Australia, for example, is well-positioned to generate large volumes of emission reductions because it exports coal across Asia.”
Countries with abundant natural assets or tech-based capabilities will likely become major players in carbon credit generation, while resource-scarce nations such as Japan are already investing heavily to secure future supply.

“It’s about identifying first-mover advantages,” Davis said. “As we approach 2040 and 2050 targets, decarbonisation will only become more expensive. Those who act early by creating frameworks, links or investments, stand to gain the most.”

With a growing number of tech-based solutions and SaaS platforms entering the carbon markets, competition is heating up. But Davis sees this as a welcome development.

“When the mission is this important, there’s space for everyone offering serious, value-added solutions,” he said. “One reason I joined ACT Group is because of its focus on real, operational digital platforms like Green Project Technologies and ACT’s Decarbonization Platform .”

He believes technology will be central to the evolution of carbon markets, enhancing transparency, enabling scale, and driving efficiency.