Climateworks Centre and Mission Possible Partnership launch new initiative to drive clean manufacturing in ASEAN

A new project initiated by Climateworks Centre, in collaboration with Mission Possible Partnership, will focus on accelerating a transformation to clean industry in Southeast Asia and strengthening the region’s global competitiveness through a focus on clean manufacturing. 

Funded by the ASEAN-UK Green Transition Fund (GTF), the Clean Manufacturing for Promoting ASEAN Competitiveness and Transformation (C-IMPACT) project is one of the key workstreams within the Pillar III clean and just energy transition and will pursue a coordinated approach to reducing manufacturing emissions in ASEAN and Timor-Leste.  

Working collaboratively with stakeholders from across Southeast Asia, C-IMPACT will co-design a clean manufacturing strategy, implement pilot projects and facilitate knowledge sharing and capacity building.

Urgent need for coordinated clean manufacturing strategy in Southeast Asia

Southeast Asia represents six per cent of global GDP and is the world’s fifth-largest economy.

The region is poised to become a global manufacturing hub, accounting for 25 per cent of global energy demand over the next decade. 

The potential increase in the production of energy-intensive commodities such as steel, cement, and chemicals – along with growth in export-driven sectors such as textiles and electronics – heightens the urgency for a clean manufacturing strategy across the region.

There are many challenges to decarbonising Southeast Asia’s industrial sector, including high costs, limited demand for low-carbon products, gaps in financing and the need for stronger regional collaboration. 

Without coordinated action, the region risks losing global competitiveness and falling behind in the shift toward becoming a clean manufacturing hub.

C-IMPACT a unique opportunity

By working together with the ASEAN Secretariat as well as ASEAN Member States and Timor-Leste, C-IMPACT offers a unique opportunity to leverage global and regional expertise, drive industrial innovation and accelerate the transition to low-carbon manufacturing.

The project will:

• Develop a regional clean and competitive manufacturing strategy and roadmap co-designed with ASEAN stakeholders
• Stress-test the strategy by conducting sector-specific pilot studies in Indonesia and Vietnam
• Build local technical expertise and enhance knowledge exchange through a dedicated capacity building program
• Increase regional networks for knowledge exchange through the establishment of a regional ASEAN multi-stakeholder taskforce on clean manufacturing. 

Leveraging regional strengths, the project will foster cross-border collaboration on industrial decarbonisation and enhance ASEAN position as a global hub for clean and competitive manufacturing.

The C-IMPACT project will support coordinated action plans, scalable pilot projects and enhanced capacity to drive inclusive and sustained progress across ASEAN member states and Timor-Leste until December 2026.