Increasing Unevenness in Trade-Related Sustainability Policy: The ASEAN Perspective

This policy brief examines the growing fragmentation of trade-related sustainability policies across ASEAN, analysing both internal divergence and external pressures from the EU, U.S., and global markets. It offers a strategic roadmap to build a more harmonised, resilient, and competitive ASEAN sustainability framework.

Key Highlights:

• ASEAN Green Deal vision: The brief calls for a common ASEAN sustainability framework integrated with trade policy—an “ASEAN Green Deal”—including shared emissions targets, deforestation-free supply chain norms, and potentially an ASEAN-wide carbon market.
• Geopolitical and regulatory pressure: The EU’s CBAM and EUDR regulations are redefining trade norms, creating compliance burdens for ASEAN exporters. Meanwhile, U.S. policy reversals under President Trump add volatility to ASEAN’s external climate partnerships.
• Risks of fragmentation: The uneven rollout of carbon pricing and sustainability laws across ASEAN countries creates cost differentials, undermines regional integration, and poses risks to trade access and investor confidence.
• Opportunities for frontrunners: Countries like Singapore and Vietnam, which are advancing in carbon pricing, renewable energy, and sustainable finance, are gaining a competitive edge in green supply chains and attracting clean-tech investment.

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About the author: Göran Roos is Adjunct Professor at the Institute for Sustainability, Energy and Resources (ISER), University of Adelaide. A globally recognised authority on advanced manufacturing, innovation strategy, and intangible-asset management, he has advised governments and multinational firms on industrial policy and competitiveness. Professor Roos is a Fellow of the Australian Academy of Technological Sciences (ATSE) and Engineering and the Royal Swedish Academy of Engineering Sciences (IVA).