Governments must prioritize sustainability amidst global instability

Over recent years, there has been a concerning trend where climate change, once considered the foremost global challenge, is increasingly overshadowed by pressing geopolitical concerns, such as military rearmament and advancements in artificial intelligence. In many countries, particularly in Southeast Asia, the need for immediate climate action is exacerbated by the deteriorating geopolitical landscape which creates financial constraints, thus leading businesses and governments to feel immobilized. Recognizing this, experts have pointed out that the era characterized by 'peace dividends' and favorable financial conditions is behind us, urging a new phase of capital scarcity. A significant consequence of these changes is the phenomenon referred to as 'greenhushing,' in which businesses may downplay their environmental ambitions due to financial or political pressures. This behavior not only threatens to undermine consumer trust but could also impede the momentum achieved by industries striving for carbon neutrality. The interdependence between sustainability and security makes it essential for governments to intervene. However, while a coordinated global response would be preferable, the current fragmented political environment suggests that regional and localized initiatives may be more practical to implement. As Southeast Asia faces mounting climate risks, the ten member countries of ASEAN are under pressure to submit updated and ambitious climate plans by 2035, seeking to showcase their resolve amid these challenges. While only Singapore has submitted its plans thus far, experts warn about the potential funding gaps resulting from the reduced climate commitments of Western countries like the United States and the European Union. Investors must also understand where to allocate resources for the emerging climate targets. The United Nations Climate Change Conference will play a pivotal role in determining whether Southeast Asia can successfully navigate the intertwining challenges of climate and economic stability, hence demonstrating a clear commitment to sustainable development. Without strong leadership that aligns financial incentives with sustainability objectives, there is a risk that ASEAN's climate initiatives could falter, leading to long-term consequences for regional and global ecological health.