ASEAN, EU Prioritise Carbon Pricing, Green Financing In Climate Cooperation

By Nazira Hasanah Nasaruddin

LANGKAWI, Sept 5 (Bernama) -- Carbon pricing and green financing have emerged as key priorities in ASEAN–European Union (EU) cooperation on climate action, as both sides seek to align environmental sustainability with economic growth.

European Commissioner for Climate, Net-Zero and Clean Growth, Wopke Hoekstra, said carbon pricing is one of the most effective instruments to curb emissions and could be adapted to the ASEAN context, citing the EU’s two decades of experience with its emissions trading system (ETS).

“One of the most effective things humanity can do is to attach a price to what we pump into the air. There is huge appetite in ASEAN to move in this direction and that sense of partnership and unity is fantastic,” he told Bernama on the sidelines of the 18th ASEAN Ministerial Meeting on Environment here.

Hoekstra said ASEAN could balance economic growth with climate goals, pointing to the EU’s record of cutting emissions by a third while expanding its economy by 70 per cent over the past two decades.

“This shows it is doable. With technologies like solar, wind and geothermal, the opportunities are there. It is not just a climate opportunity but a financial one,” he said.

Meanwhile, European Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, emphasised that the green transition and competitiveness should be viewed as complementary rather than conflicting goals.

“For me, competitiveness and green transition are not in competition but complement each other. Making businesses sustainable strengthens economies and creates jobs while protecting nature,” she said.

Roswall underlined the need to mobilise private capital alongside public funding for biodiversity and climate action, noting that innovative mechanisms such as “nature credits” could serve as potential financing tools.

“These are not costs but investments. Industries already recognise environmental risks such as floods and water shortages, which makes green finance a matter of risk management as well,” she added.

On palm oil, Roswall acknowledged its importance to ASEAN and stressed that ensuring sustainable production and consumption is a shared responsibility between the region and the EU.

“It is about cooperation on traceability and sustainability standards. The solution has to be global,” she said, adding that she would visit a plantation in Malaysia during her trip.

Both commissioners expressed optimism that ASEAN and the EU can deepen cooperation in climate science, biodiversity and the circular economy, describing the partnership as vital in an increasingly challenging global environment.

“The opportunities are huge, and the challenges are shared. Together we can make significant progress,” Hoekstra said.

-- BERNAMA