The Green Transition within the EU’s Indo-Pacific Strategy: The EU’s engagement with the Indo-Pacific

by Aleksandra Ipolitova & Serhii Romanov

The Indo-Pacific region has emerged as a focal point of global economic, political, and security dynamics, reshaping the international order in the 21st century. When politicians refer to the Indo-Pacific, they generally mean the countries stretching from the east coast of Africa to the Pacific Island States. This vast area encompasses the Indian and Pacific Oceans and is home to the three of the world’s five largest economies: People’s Republic of China, Japan and India. Alongside these nations, the region also includes Vietnam, The Philippines, Indonesia, Malaysia, Singapore, South Korea, Bangladesh, South Africa and many other states. Moreover, according to the United Nations Population Fund, more than 50% of humanity resides in this region. 

At the end of the 20th century, several countries in the Indo-Pacific, including South Korea, Japan, People’s Republic of China, Taiwan, Hong Kong, Macao, Singapore experienced rapid economic growth, transforming their economies and trade capabilities. More recently, the so-called “Tiger Cub Economies”, featuring Indonesia, Malaysia, the Philippines, Thailand and Vietnam have also seen impressive economic development. Today, the Indo-Pacific region accounts for 50% of world GDP. This noticeable growth and its global economic significance make cooperation with the region crucial in the modern world. 

Moreover, considering the fact that a large portion of global trade is conducted by sea, maritime routes and ports are essential for international trade. Many of the world’s most critical “chokepoints” are located within the Indo-Pacific region: the East and South China seas, the Taiwan Strait, the Singapore Strait, the Malacca Strait, the Hormuz Strait, the Bab -el-Mandeb Strait, the Suez Canal. These “bottlenecks” are vital for the global trade system and the blockage even one could lead to significant disruptions – as seen with the Suez Canal blockage in March 2021, which caused an estimated US$400 million (approx. €367 million) in losses per hour according to Lloyd’s List. As a result, numerous countries are seeking to establish a presence near these crucial waterways. For instance, in the small African country Djibouti— , which is located by the Bab-el-Mandeb Strait— , the USA, People’s Republic of China, France, Italy have set up military bases and Japan has established a self-defence force base to maintain security.

However, the Indo-Pacific region constantly faces significant environmental challenges. Countries in the region are particularly sensitive to maritime security issues.These concerns go beyond natural disasters like earthquakes, tsunamis or volcanic activity, extending to the far-reaching effects of climate change. According to the Regional Climate Consortium for Asia and the Pacific, the sea levels are rising swiftly. By 2030, sea levels are projected to rise between 0,09 and 0,18 meters, compared to 1986- 2008 levels, and by 2070, the increase could reach as much as 0.63 meters . Moreover, the Indo-Pacific is the world’s largest contributor to greenhouse gas emissions, responsible for over 50% of the global total.

In summary, the Indo-Pacific region is not only crucial politically and economically, but also strategically vital due to its geography. Nearly 90% of global maritime trade routes pass through the region, and it is home to a large proportion of the world’s population and several of the largest economies. These factors make the Indo-Pacific an essential partner for the European Union. However, the region also faces profound environmental challenges, underscoring the importance of “green policy” and “green transition” in the EU’s Indo-Pacific strategy, which was adopted in September 2021.

ASEAN as a key partner in the Indo-Pacific

The EU strategy for cooperation in the Indo-Pacific underlines the importance of the Association of Southeast Asian Nations as a central partner in this region. Indeed, ASEAN is one of the EU’s ten largest trade partners, with bilateral trade reaching US$282.4 billion (approx. €259.1 billion) in 2023 . The European Union recognizes ASEAN’s central role in building a rules-based regional architecture, as well as in ensuring security and stability. However, Southeast Asia is one of the most sensitive regions to climate change, as the households and infrastructure of hundreds of millions of ASEAN population are located in coastal and river delta areas. 

The new plan of action to implement the ASEAN-EU Strategic Partnership aims to coordinate cooperation between two organisations . The document is divided into four main sectors. The third sector, focused on socio-cultural cooperation, addresses environmental issues. Within this framework, the European Union will assist ASEAN in implementing strategic priorities outlined in the Paris Agreement, the EU Green Deal and other relevant initiatives. Additionally, the EU will strengthen its support for addressing climate change and environmental challenges such as rising sea level, the adaptation and mitigation of greenhouse gas emissions, and water and air pollution. 

Within the environmental framework, the European Union established “The Green Team Europe Initiative”, a collaboration between the EU, EU Member States, and European development banks, with the aim of coordinating their action to combat climate change and address environmental challenges. One example of Team Europe’s actions is the implementation of the “Just Energy Transition Partnership” (JEPT) in Indonesia, launched during the G20 Summit in Bali in November 2022. According to the program’s goals, “Team Europe” is assisting Indonesia in accelerating the development of renewable energy technologies to achieve a renewable energy generation share of 44% by 2030 and net-zero emissions in power sector by 2050. Additionally, JEPT aims to peak carbon emissions in the public sector at 290 megatons of CO2, followed by immediate decline. To date, the EU, EU Member States and the European Investment Bank contributed €3.4 billion toward this initiative.

In 2019, the EU Delegations, alongside EU Member States’ embassies, launched “Climate Diplomacy Week, ” a series of events held across every ASEAN Member State to promote positive environmental contributions. During the latest edition, held from October 15 to 22, 2023, 134 volunteers in Brunei Darussalam participated in a cleanup of the Brunei River and its riverbed, located in the country’s most densely populated district, Brunei-Muara. Over the course of the week, volunteers collected more than 1.3 tons of waste. 

Cambodia also saw significant participation in October 2023, with more than 400 volunteers cleaning the Mekong River shoreline and landscaping Phnom Penh. The Mekong River is vital to Cambodia, providing a critical source of freshwater, supporting agriculture and fisheries, sustaining local communities, and playing a central role in the country’s cultural heritage and economic development. Moreover, as part of the EU-ASEAN green partnership, the EU funded the “Smart Green ASEAN Cities” initiative, which provides opportunities for cities in ASEAN and Europe to exchange experiences and best practices. The programme supports and complements on-going initiatives, aiming to improve design, planning, and implementation of green and smart city solutions while strengthening national capacity for green and smart city development. To date, the EU has contributed approximately €5 million to support 10 ASEAN cities. 

The EU-ASEAN partnership in the environmental field is enhancing dialogue between the two organisations and their Member States on multiple levels. First, it is establishing and strengthening cooperation between governments and business sectors of both regions within the green transitions programs. Second, it is building links between local governments in the EU and ASEAN cities through smart and green cities programs. Finally, it is fostering strong ties between like-minded individuals from the EU and ASEAN countries, united by shared commitment to environmental care through the “Climate Diplomacy Week” framework. As a result, the partnership not only supports policy and economic cooperation but also drives community engagement and grassroots action across both regions. By integrating efforts at all levels, the EU-ASEAN collaboration effectively addresses environmental challenges while building a resilient, sustainable future.

Japan as one of the European biggest partners in the East Asia

Japan has traditionally been one of the closest like-minded partners of the European Union. According to European Commission statistics, Japan is one of the EU’s ten largest trade partner and the second largest trading partners in Asia, after China . Moreover, imports and exports between the EU and Japan grew noticeably to €186.6 billion in 2023, with this bilateral trade in goods primarily focused on the industrial sector. 

Following the deepening of bilateral relations, several agreements were concluded, including the establishment of the «Green Alliance» between Japan and the EU . The priorities of the alliance are defined in key areas: cooperation on energy transition, environmental protection, regulatory and business cooperation, research and development, and sustainable finance. Furthermore, both members of the Green Alliance committed to accelerating the green transition in third countries. 

The coordinated actions of the EU and Japan can be observed in their facilitation of transition programs in third countries. For instance, Japan, along with Green Team Europe, is participating in the aforementioned “Just Energy Transition Partnership” in Indonesia. To date, Japan has contributed US$1.7 billion (approx. €1.5 billion) through the Japan Bank for International Cooperation and the Japan International Cooperation Agency. Another example of their cooperation in the green transition field is a similar program, the “Just Energy Transition Partnership” in Vietnam . According to the mobilization plan, Japan has offered US$342.4 million (approx. €315.6 million) through JBIC and JICA to help Vietnam achieve net-zero greenhouse gas emissions by 2050. At the local level, the Delegation of the European Union in Japan, along with the Institute for Global Environmental Strategies and the City of Yokohama, has conducted several workshops dedicated to EU-Japan subnational climate action. 

Bilateral cooperation between the EU and Japan is key for the environment because it allows both partners to leverage their economic power and shared commitment to advancing global sustainability efforts. The “Green Alliance” focuses on critical areas such as energy transition and environmental protection and extends their impact beyond their borders by implementing green transition programs in third countries like Indonesia and Vietnam. This enduring partnership between the EU and Japan not only strengthens their bilateral relations but also sets a global example of collaborative leadership in addressing the urgent challenges of climate change and sustainable development.