The high rates of economic activity and environmental degradation in Asia demand the implementation of creative and cost-effective environmental policy instruments that provide polluters with more flexibility to find least-cost solutions to pollution reduction. Despite their many theoretical advantages, the use of market-based instruments (MBIs) is a relatively recent phenomenon in Asia, partly due to policymakers being unfamiliar with MBIs and countries lacking the institutional capacity to implement and enforce them.

Forest tenure reforms are occurring in many developing countries around the world. These reforms typically include devolution of forest lands to local people and communities, which has attracted a great deal of attention and interest. While the nature and level of devolution vary by country, all have potentially important implications for resource allocation, local ecosystem services, livelihoods and climate change.