In November 2025, the world will gather in Belém, Brazil, for the 30th UN Climate Change Conference of the Parties (COP30). The location is symbolic: the Amazon rainforest, one of the planet’s most critical ecosystems, faces unprecedented threats from deforestation and climate change.
COP30 matters because it will determine how countries accelerate their commitments under the Paris Agreement to limit warming to 1.5°C. For Southeast Asian businesses, it signals future regulations, investor demands, and market shifts that will directly affect how companies operate.
ASEAN Priorities Going Into COP30
Renewable Energy Transition
ASEAN nations are under pressure to reduce their reliance on coal and oil. Regional projects like the ASEAN Power Grid aim to boost cross-border renewable energy trade, but businesses must prepare for faster adoption of solar, wind, and hydro.
Carbon Markets
COP30 is expected to advance rules under Article 6 of the Paris Agreement, which governs international carbon trading. This could open opportunities for ASEAN countries to sell carbon credits, particularly from forestry, mangroves, and renewable projects.
Loss and Damage Finance
Vulnerable Southeast Asian nations stand to benefit from the Loss and Damage Fund established at COP28. This fund provides financial support for communities already facing the impacts of floods, typhoons, and sea-level rise.
Biodiversity and Forests
Brazil and Southeast Asia share a unique challenge: protecting tropical rainforests. Joint commitments on deforestation-free supply chains and biodiversity protection are likely to be high on the COP30 agenda.
Sector-by-Sector Impacts
Manufacturing
Supply chains will be under greater scrutiny. Multinationals are already asking suppliers to measure and reduce Scope 3 emissions. Local manufacturers must adapt or risk losing contracts.
Energy
Oil and gas remain significant in ASEAN, but COP30 may accelerate global calls for a phase-down of fossil fuels. Energy companies must diversify into renewables or carbon capture to remain competitive.
Agriculture and Food
ASEAN’s agricultural exports, like palm oil and rice, face pressure to adopt sustainable land-use practices. Food companies will need to prove deforestation-free sourcing.
Finance
Financial institutions must prepare for stricter climate-related disclosure rules, in line with frameworks such as the ISSB. Investors are shifting towards green bonds and climate-aligned portfolios.
How Businesses Can Prepare
- Strengthen ESG Reporting – Align disclosures with global frameworks to stay credible with investors and regulators.
- Assess Carbon Footprints – Especially Scope 3, which makes up the majority of emissions in many industries.
- Explore Carbon Markets – Position early in carbon trading opportunities by investing in offset projects.
- Scenario Planning – Stress-test business strategies under stricter climate regulations.
- Collaborate Regionally – Join industry alliances and ASEAN initiatives to stay ahead of policy shifts.
Opportunities Beyond Compliance
- Green Finance Access: Banks and investors are offering lower rates for sustainable businesses.
There are several banks in the ASEAN region offering lower or more favourable rates, or rebates/incentives, for sustainable businesses
| Bank / Institution | Country | What They Offer (Lower Rates / Rebate / Incentive) | Key Conditions / Notes |
| CIMB (GreenBizReady, Malaysia) | Malaysia | Offers Sustainability-Linked Financing (SLF) for SMEs that includes financing rebates up to 0.50% per annum. CIMB | SME must commit to GHG emissions reduction targets; use tools like MGTC’s LCOS for measurement/verification. |
| CIMB Singapore (SME SLL/SLF Programme) | Singapore | Gives a 0.2% interest/profit rate rebate for SMEs if they verify baseline emissions and meet performance. CIMB Singapore | Simpler criteria; ties to emissions baseline; rebates upon verification. |
| HSBC Singapore (Green Loan / Green Solutions) | Singapore | Green loans for SMEs / term loans that support green projects; tend to use existing sustainability certifications, likely with better terms. | Need to have recognised certifications before applying; minimum loan sizes apply. HSBC |
| Hong Leong Bank (HLB), Malaysia) | Malaysia | Has a Sustainable Finance Framework committing RM20 billion to green projects, including green buildings and energy efficiency. Energy Asia | Depends on the project type (green building, renewable energy, etc.), ESG readiness. Hong Leong Bank |
| SME Bank Malaysia | Malaysia | Offers green / transition financing and incentives via government-backed facilities; has a Sustainability Roadmap targeting RM10 billion in sustainable financing by 2030. SME Bank | Often limited to certain sectors, eligibility may require an ESG action plan or verification. |
- Market Differentiation: Early adopters can stand out to global partners.
- Resilience: Strong climate strategies reduce exposure to regulatory, reputational, and physical risks.
- UN Global Compact: Companies that align with UNGC principles on climate, labour, and governance gain international recognition and strengthen their ESG credibility.
Will COP30 be just another summit or the moment that reshapes global business and finance for the decade ahead? For Southeast Asian businesses, the question is whether to align with climate action now or risk falling behind.