Economic growth in developing countries in Southeast Asia must be de- coupled from carbon emissions to support the climate transition. In the Philippines, Indonesia, and Malaysia, fossil fuels dominate the power supply, and there is an increasing demand for passenger and freight transport. Deforestation and forest degradation continue to destroy critical carbon sinks across Cambodia, Indonesia, and Lao PDR. Southeast Asia also presents fast-changing climatic vulnerabilities, with average temperature increase of between 0.14°C–0.20°C per decade, rising sea levels and erosions of coastline, and more extreme weather events.

The COVID-19 crisis has slowed the momentum to scale up green infrastructure in the region. Public budgets are being diverted to support the emergency pandemic response, government funds for the implementation of Nationally Determined Contributions (NDCs) have been slashed, and investment in green infrastructure has slowed or stopped completely.