By Harizah Hanim Mohamed
KUALA LUMPUR, Feb 19 (Bernama) -- Malaysia should spearhead sustainable or green shipping initiatives within ASEAN, such as expanding access to regional financing schemes and promoting cooperation in carving out low-carbon shipping routes.
In making the call, Arthur D. Little Head of Southeast Asia Yuma Ito said that establishing green corridors to reduce pollution and improving infrastructure is vital to achieving these objectives.
He said Putrajaya should also leverage its strategic location and the region’s busy sea lanes to drive greater cooperation, especially in joint infrastructure development, which would bolster ASEAN’s maritime prominence.
“ASEAN could designate strategic sea lanes, such as the Strait of Malacca, as green corridors by promoting the use of second-generation fuels and low-emission vessels,” Ito told Bernama in an interview today, highlighting that Arthur D. Little is a global management consulting firm with 51 offices across 39 countries.
He also said that ASEAN member states could also agree to fund the development of green ports, such as electrifying port cranes and increasing renewable energy usage within ports.
“By fostering coordinated approaches to reduce emissions along Southeast Asia’s shipping routes, and engaging with Singapore and other ASEAN members, the region would also support pilot projects in non-conventional fuels and advanced digital solutions.
“This would ensure cross-border compatibility,” said Ito, adding that Peninsular Malaysia’s location along one of the world’s busiest shipping lanes gives it a natural and significant advantage in maritime trade.
He also said that ASEAN, as a bloc, should strive towards global leadership in green innovation, which includes leveraging its geographical position and trade connectivity to establish green shipping corridors and lead sustainability efforts in maritime trade.
Ito added that the region could also encourage research and development centres for alternative fuels and emissions reduction technologies.
“ASEAN ports could become preferred locations for refuelling and retrofitting vessels with green technologies, meeting rising demand from international shipping lines.
“Southeast Asia could capitalise on manufacturing and exporting green technology components, such as batteries and renewable energy systems while establishing a robust network of green methanol bunkering facilities to attract international shipping lines to the region,” he noted.
While ASEAN has established sustainability goals through initiatives like the ASEAN Plan of Action for Energy Cooperation (APAEC), Ito said maritime-specific frameworks were less developed compared with energy or trade policies.
“Collaboration in green shipping corridors, particularly in key maritime routes like the Strait of Malacca, is another promising step,” Ito said.
Despite ongoing efforts to advance the green shipping agenda in ASEAN, he emphasised that sustainability initiatives need to be balanced with economic realities, such as developing economies requiring both technical and financial support.
“Regional frameworks can provide technical and financial support to less-developed member states, enabling them to implement stricter measures without disrupting local economies,” he said, adding that gradual adoption of sustainability measures allows businesses across ASEAN to adapt, avoiding economic disruptions while ensuring long-term compliance.
“Cost challenges will have to be addressed. Offering subsidies, tax breaks or access to green financing could encourage local businesses to invest in sustainability initiatives.
“Engaging with international organisations, such as the Asian Development Bank and United Nations Framework Convention on Climate Change, can unlock funding and technical expertise for decarbonisation efforts,” said Ito.
Balancing sustainability and progress of member states
While ASEAN increasingly focuses on global sustainability regulations, compliance remains uneven due to differences in economic status, regulatory maturity and infrastructure across member countries.
“Strengthening regional collaboration, capacity building, and private sector engagement are key to achieving consistency and positioning ASEAN as a global leader in sustainability,” he said.
Categorising ASEAN member states by sustainability adoption, Ito said Singapore and Malaysia are regarded as high compliance groups.
They lead with robust measures aligned with the International Maritime Organisation and the United Nations Framework Convention on Climate Change policies.
“Singapore’s Green Ship Programme and Malaysia’s Energy Transition Programme, officially called the National Energy Transition Roadmap (NETR), are prime examples.
As for mid-tier compliance, Thailand and Indonesia are making progress, especially in implementing renewable energy and emission reduction, though they face challenges with enforcement and infrastructure,” Ito said.
At the other end of the scale, Cambodia, Laos and Myanmar struggle with compliance, resource constraints and legal gaps.
He also lamented that fragmented regulation in ASEAN does not allow for effective scaling of decarbonisation projects.
Malaysia’s ASEAN chairmanship 2025
According to Ito, Sarawak’s plans to develop hydrogen plants and infrastructure aim to establish Malaysia as a hydrogen hub, positioning the country well to achieve its sustainability goals and lead ASEAN in the transition towards hydrogen energy.
“By driving innovation, attracting investment and fostering regional collaboration, Malaysia can emerge as a green energy pioneer, supporting ASEAN’s climate change objectives,” he added.
Sarawak’s goal is to become the first hydrogen-powered economy in Southeast Asia and place Malaysia as a first mover in hydrogen.
This strengthens the country’s leadership in ASEAN and enhances Malaysia’s potential as a dominant hydrogen supplier in the region, contributing to ASEAN’s vision of an integrated, sustainable power grid.
“Malaysia can guide the region in adopting hydrogen technologies and foster cooperation to meet collective climate goals,” Ito said.
Shaping an ASEAN-specific ETS framework
ASEAN can take a leaf from developed countries and economic blocs like the European Union, which have introduced the Emissions Trading System (ETS) to reward companies that reduce their carbon footprint.
From the ASEAN perspective, Ito said ETS in ASEAN could support the regional sustainability goals, with several uniquely regional factors needing to be addressed.
He stressed that ASEAN member states have varying levels of economic development and regulatory readiness, which poses several specific challenges, as well as opportunities unique to the region.
“As such, a gradual, collaborative approach that focuses on building capabilities and alignment with international standards will create a strong foundation for ASEAN to achieve an effective system,” he said.
Weighing the pros and cons of ETS for ASEAN, Ito said that an ETS could incentivise industries to adopt cleaner technologies by monetising carbon savings.
It would also help integrate carbon reduction policies across the region and improve compliance with international commitments.
“But again, due to economic disparities, coordination may be difficult for ASEAN.
“Implementing an ETS would be easier for developed countries like Singapore and Malaysia, but developing nations lack the institutional frameworks needed for tracking, managing, and enforcing such systems,” said Ito.
As such, he urged ASEAN to adopt a phased approach, starting with more advanced countries, followed by less-developed nations.
The model could include voluntary participation, economic cycle assessments for compliance, green investments such as subsidies and tax credits, and strengthened regional cooperation.
“Nations lagging with limited technical expertise will require training and investment to develop monitoring, reporting, and verification (MRV) systems,” he said.
Another alternative to be considered is ASEAN establishing a centralised body to oversee emissions trading and ensure consistent standards across member states.
“Engaging the private sector is also important as incentives such as tax benefits or subsidies for companies that participate in ETS can boost adoption and remove friction.
“ASEAN’s ETS should align with international systems to attract investment and facilitate cross-border trading opportunities,” he said.
-- BERNAMA
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