Authors: Raissa Serafina Rayendra & Mohan M.R.T. Eteng Sitorus*
The Association of Southeast Asian Nations (ASEAN) and Japan have ramped up efforts to link economic growth with climate action. At the 26th ASEAN-Japan Summit on September 6, 2023, they launched a comprehensive strategic partnership focused on green infrastructure, energy transition, connectivity, and the digital economy. They also introduced the “ASEAN-Japan Economic Co-Creation Vision” to push forward sustainable regional development.
Despite bold promises, ASEAN and Japan face growing criticism over “word-deed gaps”—the disconnect between what they say and what they do. Japan remains one of the world’s top fossil fuel importers and still invests in coal, making it the fifth-largest emitter globally. ASEAN countries also cling to carbon-heavy industries, missing the chance to lead in green growth. Even Japan’s infrastructure projects in the region often contradict its clean energy goals, worsening environmental problems instead of solving them. So the question remains: Are they genuinely committed to sustainability or just protecting business interests?
The Economy Versus Climate Change
Climate change is not just an environmental issue but also an economic threat. The U.S. could lose up to US$520 billion by 2100 due to unchecked emissions impacting agriculture, forestry, and fisheries. Rising temperatures are slashing productivity; in Australia, heatwaves could cost 700,000 to 2.7 million workdays annually by 2061. Natural disasters drive infrastructure repair costs and insurance rates. Agriculture also suffers from droughts and extreme weather, threatening food supply and raising prices. The OECD warns global GDP could shrink by up to 3.3% by 2060—and by 2100, economic activity could drop by 30% if emissions are not curbed.
While it is true that climate change is hurting the economy, the other side of the coin must also be acknowledged: the economic model is also driving the crisis. Growth fueled by mass production, fossil fuels, and resource extraction leads to deforestation, habitat loss, and rising emissions. Too often, short-term profits are prioritized over sustainability, and current climate policies fall short of real impact.
ASEAN countries and Japan are already feeling the harsh realities of climate change. From deadly typhoons in the Philippines to cyclones in Myanmar, extreme weather is becoming the norm. Rising sea levels threaten to swallow coastal regions in Vietnam, Indonesia, Brunei, and the Philippines. Food security is under pressure in Malaysia, Cambodia, Myanmar, and Timor-Leste due to erratic weather disrupting agriculture. Japan is not spared either—record heatwaves in 2018 sent over 30,000 to the hospital and caused at least 80 deaths. The country also faces severe flooding, prolonged droughts, and biodiversity loss from rising sea temperatures.
The Green Economy Collaboration
Climate change has finally taken center stage at the ASEAN-Japan Summit. Both sides discussed phasing out fossil fuels and expanding green infrastructure—like renewable energy, energy-efficient buildings, and clean transport. They have pledged to promote cleaner energy sources, including nuclear, wind, and solar. ASEAN aims to hit 23% renewable energy by 2025, cutting its dependence on fossil fuels. Japan backed its commitment by pledging US$100 million through the ASEAN Integration Fund 3.0 to support the ASEAN Outlook on the Indo-Pacific.
ASEAN and Japan are turning to digitalization to fight climate change without hurting economic growth. By boosting digital connectivity and investing in digital infrastructure and skills, they aim to strengthen green cooperation and build a more resilient, future-ready economy.
Actions and Impacts
ASEAN and Japan have taken essential steps in terms of energy and climate. The 2018 ASEAN-Japan Climate Change Action Agenda promoted regional cooperation through waste-to-energy projects. Japan’s Asia Zero Emission Community supports ASEAN’s shift to renewables. Indonesia, too, joined the US$20 billion Just Energy Transition Partnership (JETP) to phase out coal by 2040. Despite these efforts, fossil fuel reliance remains strong—Indonesia, for instance, is ramping up coal production to 694 million tons in 2024.
Vietnam is stepping up as a regional wind energy leader with the La Gan Wind Farm, backed by Japanese investors and expected to generate 3.5 GW to power millions of homes. Despite this progress, the country continues to greenlight new coal and gas projects, approving more coal plants in 2023 to meet rising energy demand.
Japan also promotes zero-carbon cities and supports innovative, sustainable urban planning in Southeast Asia. Cities in Vietnam, Thailand, and Malaysia have seen real progress. However, there is a notable flaw that makes it contradictory. While backing green cities, Japan remains the region’s top coal financier, pouring money into massive projects like Indonesia’s Batang Coal Power Plant.
Transportation is a key area of ASEAN-Japan collaboration. Through the ASEAN-Japan Transport Partnership, green logistics practices have been promoted per the Brunei Action Plan. With backing from Toyota and Mitsubishi, Thailand is incentivizing electric vehicles. However, there is a catch—Japan continues to promote liquefied natural gas (LNG) as a “transition” fuel in Thailand, Vietnam, and the Philippines. Although cleaner than coal, LNG is still a fossil fuel and emits methane—86 times more potent than CO₂ over 20 years.
Calling Out the Flaws
Critics argue that the ASEAN-Japan green economy partnership has serious flaws. Many of its commitments lack legal teeth, allowing both sides to fall short without consequences while fossil fuel investments continue unchecked. Funding for sustainable projects remains limited, and small businesses struggle to access green financing. Regional cooperation is also weak, with countries duplicating efforts rather than working together. Japan’s advanced green tech is also not effectively shared with ASEAN nations.
A major flaw in ASEAN-Japan cooperation is the use of greenwashing to justify fossil fuel dependence. Labeled as “transitional energy,” Japan and ASEAN countries continue to promote LNG and so-called “clean coal.” Japan also pushes carbon capture and storage to extend fossil fuel use while investing heavily in coal and LNG projects across Southeast Asia. Countries like Indonesia, Vietnam, and Thailand are still expanding fossil fuel infrastructure—relying on offsets instead of genuinely committing to renewables.
One major flaw in ASEAN-Japan cooperation is its one-size-fits-all approach, which overlooks local needs. Countries like Indonesia and Vietnam need large-scale renewable infrastructure to move away from coal, while Laos and Cambodia require off-grid solutions to power rural areas. The energy transition also lacks support for affected workers and communities—coal and gas workers face job losses, and vulnerable groups like women and Indigenous communities risk losing access to clean water and ancestral lands.
ASEAN and Japan proudly talk about green collaboration, but their actions often tell a different story. Despite progress in sustainable initiatives, continued investments in fossil fuels cast doubt on their genuine commitment. If they are serious about climate leadership, they must close the gap between promises and practice. Climate resilience is not just ideal—it is essential for long-term economic stability in the Indo-Pacific.
*Mohan M.R.T. Eteng Sitorus is an undergraduate International Relations student at Universitas Gadjah Mada, Indonesia, with a focus on global diplomacy, geopolitical strategies, and international organizations. He is passionate about analyzing how nations collaborate and compete on issues like security, trade, and climate change. Mohan expands his knowledge through intensive research and publishing his insights, aiming to foster discussions among fellow international relations enthusiasts.
