The European Union (EU) has made a substantial monetary commitment to support climate-friendly development efforts within the Southeast Asian region. Becoming a “strategic partner” of the Association of the Southeast Asian Nations (ASEAN) bloc in December 2020, the EU is working closely with this body to prioritise climate change policies and sustainable initiatives.
EU’s Assistance: Multilateral and Individual Efforts
As the primary provider of development aid to the ASEAN region, the EU has allocated millions of euros to various environmental programmes including €5 million to the ASEAN Smart Green Cities initiative, and an equal amount to the Forest Law Enforcement, Governance and Trade body in ASEAN. This financial backing aims to help prevent deforestation, which is a major global concern.
In addition to these collective efforts, the EU is also assisting individual ASEAN member states to implement eco-friendly policies. Examples of this include supporting Thailand’s Bio-Circular-Green Economic Model and Singapore’s Green Plan 2030.
Challenges for the EU in Southeast Asia
The EU faces numerous difficulties in its environmental initiatives within Southeast Asia as the region struggles with their climate change policy. According to the Climate Risk Index 2020, five ASEAN states are among the fifteen countries most impacted by climate change between 1999–2018.
One significant issue is the escalating use of coal. Projected energy demand in Southeast Asia is expected to increase by 60% by 2040, with coal-fired energy overtaking natural gas as the predominant power source by 2030. If this projection becomes reality, coal could be responsible for nearly 50% of the region’s CO2 emissions by 2040.
The International Energy Agency (IEA) reported that consumption of coal in this region was around 332 million tons in 2019, which is nearly double what it was a decade earlier. This increase could contribute to a dramatic rise in CO2 emissions of up to 2.4 gigatons.
Implications for EU’s Efforts: Potential Backlashes and Accusations
The EU’s strong stance against coal consumption could ignite resentment from key exporters like China, India, and Australia. Additionally, the EU’s policies have already faced opposition within the region. Indonesia, being the world’s largest palm oil producer, mounted a legal challenge last year against the EU’s phased ban on palm oil imports at the World Trade Organization, considering it as protectionism. Malaysia, the world’s second-largest palm oil producer, backs this stance.
Moreover, the EU might face accusations of hypocrisy if it acts too forcefully against coal-fired energy production in Southeast Asia. Some EU members, such as Poland and the Czech Republic, are still highly dependent on coal-based energy production. In 2019, the share of global thermal coal imports was approximately equal for Europe and Southeast Asia (around 11% each).
India’s Role in Climate Change Initiatives with ASEAN
In 2012, India and ASEAN adopted the ‘New Delhi Declaration on ASEAN-India Cooperation in Renewable Energy’ which led to the establishment of the ASEAN-India Green Fund in 2007. With USD 5 million in funding, this initiative backs pilot projects promoting adaptation and mitigation technologies to combat climate change. Furthermore, ASEAN and India are collaborating on several climate change and biodiversity projects, partnering with the Indian Institute of Science, Bangalore.
