Abstract: A system and method for effectively performing an adaptive quantization procedure includes an energy calculator that initially determines energy values for subbands of input data. A quantizer receives initial quantization parameters that each correspond to a different respective one of the subbands. The quantizer calculates adaptive quantization parameters from the initial quantization parameters by utilizing corresponding ones of the energy values. The quantizer then utilizes the adaptive quantization parameters to generate quantized coefficients for the subbands during the adaptive quantization procedure.