The concept of a circular economy—reducing waste and pollution by keeping products and materials in use—represents a powerful response to the escalating pressures on global resources. The Intergovernmental Panel on Climate Change (IPCC) reports consistently demonstrate the urgency of mitigating climate change, demanding a shift away from linear “take-make-dispose” models. Simultaneously, many ASEAN economies face challenges of dependence on resource extraction and a need to enhance domestic industrial capacity. This creates a compelling rationale for embracing circular economy principles. Data from the World Bank indicates that Southeast Asia’s resource intensity is notably higher than the global average, representing a significant area for improvement.
Historically, ASEAN’s approach to economic development has prioritized export-oriented growth, often relying on the extraction and processing of raw materials. The transition to a circular economy necessitates a fundamental restructuring of industries, requiring investment in research and development, technological innovation, and the development of green skillsets. Thailand, with its considerable manufacturing base and burgeoning tech sector, is positioned as a potential regional leader. However, achieving this leadership isn’t simply about adopting the concept; it requires a multi-faceted approach. A key element is supporting domestic firms in adopting circular economy practices, a process often hampered by limited access to capital and technical expertise. According to a 2023 report by the Asian Development Bank, less than 10% of businesses in Thailand have implemented circular economy strategies.
The ACEF 2025, co-organized by the ASEAN Centre for Sustainable Development Studies and Dialogue (ACSDSD) and featuring participation from the European Union, Finland, and Malaysia, underscored several critical areas. Dr. Pitchayaphant Charnbhumidol, Advisor to the Minister of Foreign Affairs of Thailand, emphasized that “the ASEAN-EU cooperation is undeniably crucial to accelerating the regional transition, primarily due to the disparity in technological capabilities and financial resources. A coordinated approach – combining European innovation with ASEAN’s regional market – will maximize the impact.” His remarks reflected a realistic assessment of the challenges. The forum’s theme, “Accelerate the Circular Economy Transition in ASEAN with Green Skills, Innovative Solutions, and Investments,” was a call to action for stakeholders across the region.
Several underlying tensions characterize the ASEAN landscape in this context. The economic disparities between member states—ranging from Singapore’s highly developed economy to the developing economies of Cambodia and Laos—pose significant obstacles. Implementing uniform circular economy standards across the region is a complex undertaking, demanding sensitivity to each nation’s unique economic circumstances and regulatory environments. Furthermore, the role of external actors, such as the EU, must be carefully managed to avoid imposing conditions that could undermine ASEAN’s autonomy and decision-making processes. As highlighted by Dr. Chanpon Wong-Lim, a Senior Fellow at the ISEAS – Yusof Ishak Institute, “The EU’s green transition agenda, while laudable, needs to be calibrated to accommodate the diverse developmental trajectories of ASEAN nations. A purely top-down approach risks creating unintended consequences, particularly concerning trade flows and industrial competitiveness.”
Short-term outcomes (next 6 months) are likely to involve further refinement of ASEAN’s circular economy framework, with a focus on developing regional standards for waste management and promoting knowledge sharing. Increased investment in pilot projects demonstrating circular economy models across various sectors—including plastics, textiles, and electronics—is anticipated. However, progress will likely remain incremental, dependent on securing continued international funding and the sustained commitment of member states.
Long-term (5-10 years) projections suggest a potentially transformative shift across the ASEAN region. If successful, the transition could stimulate economic growth, create new jobs, and significantly reduce the region’s environmental footprint. However, achieving this requires overcoming substantial hurdles, including scaling up investment, fostering innovation, and building the necessary institutional capacity. Data modeling by the International Energy Agency (IEA) indicates that a full-scale transition to a circular economy in Southeast Asia could unlock approximately $120 billion in annual economic value. Ultimately, the success of ASEAN’s circular economy ambition hinges on a sustained, strategic, and collaborative approach, acknowledging the complex interplay of economic, political, and environmental factors. The momentum generated at ACEF 2025 represents a vital step, but the true test will be in the sustained commitment and execution of its recommendations.