EXECUTIVE SUMMARY

In response to the growing urgency to combat climate change, the public sector plays an enabling role in facilitating the implementation of integrated government strategies to meet sustainability tar
Among ASEAN Member States, governments are making efforts to support climate-sensitive Still, progress is held back by economic and regulatory obstacles, alongside a lack of national and global coordination.
The lack of government policies is inhibiting the effective mobilisation of climate Governments also need to ensure efficient implementation of existing policies such as enforceable standards for green bonds.
A key challenge for policymakers is integrating public policy with Nationally Determined Contributions (NDC) targets, as current public policies, including national budgets, still need to be integrated with climate
As climate finance is still in its infancy in ASEAN, several ASEAN Member States rely heavily on public financing, including government funding and multilateral and bilateral agreements, to meet their NDC

POLICY RECOMMENDATIONS

Addressing climate-sensitive issues requires integrating public policy with NDC and Sustainable Development Goals (SDGs) targets via a bold whole-of-government and whole-of-society approach, sustained by continuous government commitments and assessing political and policy
Strengthening fiscal resiliency should be supported by sound public financial management strategies and frameworks aligned with climate action
Re-evaluating fuel and energy subsidy mechanisms and introducing instruments such as carbon tax and carbon pricing mechanism is
Identifying new partnership opportunities through blended finance for scaling up climate actions and empowering institutional investors as a vital form of public-private collaboration to unlock innovative climate financing
Strengthening international collaboration on standard harmonisation, capital mobility, capacity building and promoting knowledge flows to enhance the public sector’s support for climate