On the sidelines of the 1st ASEAN–EU Ministerial Dialogue on Environment and Climate Change in Langkawi on 4 September 2025, the European Union announced two regional programmes aimed at promoting nature-based solutions, biodiversity conservation, and climate resilience across Southeast Asia. Together, these initiatives represent an EU contribution of EUR 30 million and are designed to support ASEAN’s green transition, contributing to the Kunming–Montreal Global Biodiversity Framework and the Paris Agreement while aligning with the broader Team Europe strategy.
European Commissioner Jessika Roswall highlighted that the initiatives demonstrate the EU’s commitment to deepening its partnership with ASEAN for a sustainable and resilient future. She emphasized the importance of strategic collaboration, noting that environmental challenges transcend borders and require joint action to benefit future generations.
The first initiative, the Nature Solutions Finance Hub (NSFH), receives EUR 15 million from the EU and is implemented in partnership with the Asian Development Bank (ADB). NSFH aims to mobilize around EUR 1.5 billion in nature-positive investments by 2030. The programme will support scalable projects and innovative financial instruments such as Nature Bonds, Payments for Ecosystem Services, and Results-Based Financing, while also strengthening institutional capacities for sustainable infrastructure and policy reform across ASEAN.
The second initiative, the ASEAN Small Grants Programme Phase III (SGP III), builds on the successes of its previous phases. With a total budget of EUR 20 million, including EUR 15 million from the EU and EUR 5 million in-kind from the ASEAN Centre for Biodiversity (ACB), SGP III will support community-driven conservation efforts in and around ASEAN Heritage Parks. The programme promotes agroforestry, eco-tourism, alternative livelihoods, and inclusive governance models, with technical and financial advisory support provided by KfW.
Dr. Jerome Montemayor, Executive Director of the ACB, emphasized that SGP III aims to replicate best practices from previous phases across ASEAN Heritage Parks, empowering local communities to drive meaningful conservation and sustainability efforts. The announcement ceremony was held at the Westin Hotel in Langkawi and attended by high-level representatives from the EU, ASEAN, ACB, and host country Malaysia.
