Decarbonising Food Systems: Opportunities for a Concerned ASEAN

BACKGROUND

The landmark Paris Agreement of 2015 provided the impetus for countries “to limit the temperature increase to 1.5°C above pre-industrial level” by the end of the century. Greenhouse gas (GHG) emissions from food systems are considered a major cause of the temperature rise.

Food systems include agriculture and supply chains to bring food to consumers. Globally, food systems account for 25–30% of total GHG emissions, made up of carbon dioxide (CO₂) from farming practices like straw burning and fossil fuel use, methane (CH₄) from livestock and rice paddies, and nitrous oxide (N₂O) from synthetic fertilisers. Southeast Asia contributes only a fraction of global GHGs, at about 5.73%, but, as will be discussed later, there are strong reasons for Southeast Asian countries to be concerned and to take action.

All ASEAN Member States (AMS) have subsequently introduced their Nationally Determined Contributions (NDCs) and proclaimed net-zero emission targets for their agrifood sectors, mostly by mid-21^st century (see Table 1). A common approach is to aim for a “net-zero” economy by a specific year. To reach net-zero, a balance between anthropogenic GHG emissions and removals must be achieved using decarbonisation as a pathway.

Decarbonisation is the process of reducing and eventually eliminating greenhouse gas (GHG) emissions associated with the production, processing, transportation, consumption, and disposal of food, i.e. in food systems. Decarbonising food systems includes preserving carbon sinks by stopping deforestation and promoting sustainable land use through conserving forests, peatlands, and healthy soils.

Without addressing emissions from food systems, climate action is incomplete, and it would be impossible to meet the Paris Agreement goals. A 2024 FAO analysis shows that around 91% of country NDCs include agrifood systems in mitigation, and 94% include them for adaptation. Top food-exporting countries, such as the U.S.A., U.K., Germany, China, France, the Netherlands and Canada, have included food system decarbonisation in their NDCs. Decarbonisation is therefore a climate mitigation strategy and the focus of the NDCs.

Decarbonisation can also be viewed as climate action applied to transform food systems from the current high-carbon, high-GHG-emission food systems into low-emission, sustainable systems.

At the recent ASEAN Third Task Force Meeting: Finalising the Strategic Framework for Food, Agriculture, and Forestry (FAF) held on 30 June to 3 July 2025, in Nha Trang, Viet Nam, decarbonisation of food systems emerged as a major point for action over the next five years.

This Long Read explores what is involved in decarbonisation, discusses the options available and challenges faced, and suggests action to take at the regional level to make decarbonisation a significant contributor to reducing GHG emissions and consequently global warming.

Table 1: AMS NDCs and Decarbonisation Action as of 2024

ASEAN MEMBER STATE	NDC DECLARATION	GHG EMISSIONS GOALS	FOOD SYSTEM DECARBONISATION
Brunei Darussalam	2020	Net‑zero by 2050	No sector‑specific mitigation actions
Cambodia	2020	Net‑zero by 2050	23% agrifood emissions cut by 2030 via mitigation & adaptation
Indonesia	2022	Net‑zero by 2060 or earlier	Agri sector plans include low‑emission crops, non‑synthetic fertilisers, methane reductions, climate-resilient agriculture (0.3% of total mitigation)
Lao PDR	2021	Net‑zero by 2050	Rice methane reduction and reduced slash‑and‑burn, plus climate‑resilient farming
Malaysia	2021	Carbon neutrality by 2050	Broad commitments to mitigation/adaptation in the agrifood sector. No specific targets
Myanmar	2021	Conditional target: 10.4 Mt CO₂e sequestered (2021–30)	Some agrifood sector mitigation using carbon sequestration
Philippines	2021	Emission cuts up to 75% by 2030	Agri sector plans include low‑emission crops, non‑synthetic fertilisers, methane reductions, and climate-resilient agriculture (0.3% of total mitigation)
Singapore	2022 Update	Net‑zero by 2050	Small agrifood sector. Focus on increasing efficiency in local urban food production (e.g. 30 × 30 initiative)
Thailand	2022	Carbon neutrality by 2050; net‑zero by 2065	General recognition of the agrifood sector mitigation needs. No sector breakdown
Vietnam	2022	Net‑zero by 2050; 30% methane reduction by 2030	Strong agrifood focus.30% methane cut, low‑carbon rice strategy, climate‑smart agriculture as core mitigation

WHY DECARBONISE FOOD SYSTEMS IN SOUTHEAST ASIA?

There are strong reasons why Southeast Asia has to decarbonise its food systems — not just for global benefit, but for its own regional survival and prosperity. Although Southeast Asia contributes only 5.73% of global GHGs, it is among the most vulnerable regions to the impacts of climate change and is prone to suffering severe losses from it. All these will worsen if climate action is delayed.

The strongest case for Southeast Asia to be concerned about decarbonisation is with respect to economic and trade opportunities. Global markets increasingly demand low-carbon, sustainable food products. If the region decarbonises early, it can position itself as a green leader and consequently attract climate finance for green technology as well as avoid trade penalties like carbon border taxes, such as those imposed by the EU. There is also likely to be an increasing need to satisfy Scope 3 emission regulations in Europe by food manufacturers in Southeast Asia. Such Scope 3 emissions include all emissions indirectly linked to a food product and occur mainly in the upstream and downstream activities of the manufacturer, such as in transportation and distribution. 

Creating demand for low-emission and nature-positive goods and services will help the adoption of emission mitigation solutions for carbon-intensive agri-commodities. Towards this end, initiatives like the First Movers Coalition for Food of the World Economic Forum are likely to see more traction in Southeast Asia, increasing beyond the current 6 organisations in 3 countries (Philippines, Singapore, Thailand) out of 50.

Rice is the largest crop by area in Southeast Asia, occupying 195 million hectares, and is the largest emitter of GHGs … It is inconceivable to consider decarbonisation in ASEAN without taking action on rice …

As ASEAN increasingly becomes not just a major trade bloc but an influential political entity, there are expectations for it to assume greater global responsibility. Southeast Asia can lead by example among developing regions by showing that low-emission growth is possible. Being part of the solution is therefore supportive of Southeast Asia’s trajectory to become a key trading bloc.

Southeast Asia’s GHG emissions are anticipated to increase from electricity generation, agriculture, deforestation, and urbanisation; concomitant with economic growth, population increase, and changing diets. Although no quantitative estimates are available, action now can prevent a high-emissions future.

APPROACHES TO DECARBONISE FOOD SYSTEMS IN ASEAN

Rice is the largest crop by area in Southeast Asia, occupying 195 million hectares, and is the largest emitter of GHGs, especially methane (CH4), with annual emissions of 194 Tg CO₂e. It is inconceivable to consider decarbonisation in ASEAN without taking action on rice, especially when scientifically-proven improved practices exist (Table 2).

Oil palm is the second largest crop in Southeast Asia at 19 million hectares, and contributes to overall GHG emissions from deforestation and other land use change, such as peatland conversion. Southeast Asia’s forests and peatlands are important carbon sinks. Clearing them for agriculture releases massive amounts of GHGs. Therefore, halting deforestation and restoring peatlands improves carbon sequestration. Solutions include zero-deforestation supply chains, peatland protection and restoration (e.g., rewetting), sustainable certification (such as the Roundtable on Sustainable Palm Oil, RSPO)[26], and traceability systems, as well as improved yields to reduce land expansion pressure.

Agroforestry and regenerative agriculture enable mixed farming on the same land, while also improving productivity and sequestering carbon in plants and soils, with the goal of enhancing biodiversity and soil health. Approaches include enforcing zero-deforestation supply chains, especially palm oil, rubber and livestock; rewetting and reforesting degraded peatlands; supporting community-based forest stewardship, and nature-based solutions.

For other smaller area crops like beverage and horticultural crops, a plethora of decarbonisation practices exist – sustainable land management by preventing soil erosion and carbon loss; low-emission drying and processing using solar or bioenergy; drip irrigation and fertigation for more efficient use of water and nutrients; cold chain efficiency with solar-powered storage and efficient logistics, and use of legume crops to reduce need for nitrogenous fertilisers.

As crop agriculture is important in ASEAN, carbon sequestration technologies have the overall impact of removing and storing carbon in plants or soil through practices like conservation tillage, biochar application, cover crops, and crop fallows. Livestock, especially cattle, contribute significantly to methane and land use emissions. Sustainable livestock management for low emissions includes improved feed quality or additives (e.g. seaweed, oils) to reduce enteric fermentation, and rotational grazing, as well as manure management.

For fast-urbanising cities like Singapore, Bangkok, and Jakarta, urban and vertical farming have been touted to reduce the carbon footprint to produce food, although a major limitation has been the availability of low-cost, renewable, non-carbon energy sources. Growing food close to consumers reduces transport emissions, while controlled environments ensure efficient water and energy use and offer opportunities to integrate renewable energy and low-emission inputs.

Waste valorisation is part of the decarbonisation weaponry, in which food waste is converted into items like compost, biogas or food and feed ingredients. This contributes to reducing methane and providing clean energy. Food waste is an often-overlooked contributor to GHG emissions.

With trade and urban food demand rising, reducing emissions in transport, storage, and processing is key. Low-carbon food logistics include electric or biodiesel-powered transport, solar-powered cold storage and efficient supply chain coordination platforms (e.g. farm-to-market technologies).

With the rise of the 4^th Industrial Revolution and digital technologies, it is now possible to optimise inputs and monitor emissions with tools such as remote sensing and drones for crop monitoring, the Internet of Things (IoT) sensor systems for efficient irrigation and fertilisation, and mobile apps for climate forecasting and farmer decision-making.

Finally, at the tail end of food systems are consumers. Promoting low-emission, healthier diets can reduce demand-driven emissions. In practice, this can be accomplished with more plant-based meals and sustainably produced alternative proteins.

Table 2: Approaches for Decarbonisation – Practices & Technologies

Target area/ food sub-system	Practices, Technologies & Approaches	Notes on adoption and impact in AMS
Climate-Smart Rice Cultivation	Alternate Wetting Drying (AWD), Direct Seeded Rice (DSR), smart fertiliser management	Oil palm in Indonesia and Malaysia, as major drivers of deforestation and peatland degradation, and causing massive CO₂ emissions, can lead to immediate and large-scale climate benefits with decarbonisation.
Sustainable Livestock Management	Feed additives, manure management	Cattle emit large quantities of methane. ASEAN countries with large livestock populations, especially cattle and beef production, include Indonesia, Vietnam, Thailand, and the Philippines.
Reforestation, land restoration and soil health	Reforestation, agroforestry, nature-based solutions, peatland restoration and Regenerative Agriculture	Oil palm in Indonesia and Malaysia, as major drivers of deforestation and peatland degradation, and causing massive CO₂ emissions; can lead to immediate and large-scale climate benefits with decarbonisation.
Urban and Vertical Farming	Controlled Environment Agriculture & Aquaculture (CEAA); hydroponics, Recirculating Aquaculture Systems (RAS)	AMS with potential to adopt include Singapore, Brunei, Thailand and Malaysia.
Bio-Waste valorisation	Anaerobic digesters on farms or at the community level; Composting systems for food waste; Biochar production from crop residues, followed by soil incorporation which sequesters carbon and also improves soil health	Huge opportunity in AMS with large volumes of bio-waste from agriculture, e.g. Thailand, Malaysia, Vietnam, Philippines, Indonesia.
Low-Carbon Food Logistics	Electric or biodiesel-powered transport; Solar-powered cold storage; Efficient supply chain coordination platforms (e.g. farm-to-market technologies)	Anaerobic digesters on farms or at the community level; Composting systems for food waste; Biochar production from crop residues, followed by soil incorporation, which sequesters carbon and also improves soil health
Precision Agriculture & Digital Tools	IoT sensors for efficient irrigation and fertilisation; Remote sensing and drones for crop monitoring; Mobile apps for climate forecasting and farmer decision-making	Potential application in AMS, where the “farm to consumer” supply chain may be long, e.g., in Indonesia, the Philippines, Vietnam, and Thailand.
Shifting Diets and Consumer Behaviour	Encourage more plant-based meals; Develop sustainable aquaculture and alternative proteins; Educate consumers on climate-smart choices (e.g. local, seasonal food); Carbon pricing or incentives for climate-smart farming; Subsidies for clean tech adoption; Green financing for farmers and food SMEs; National food decarbonisation roadmaps	Promoting low-emission, healthier diets to reduce demand-driven emissions. All AMS can benefit from this.

Not all Southeast Asian countries have the same capacity to decarbonise. Their potential varies and depends on the type of agriculture (rice, livestock, palm oil, etc.), land use and deforestation trends, state of economic development, policy readiness and investment, and capacity for technology adoption.

Vietnam has chosen to implement their agrifood NDC with the most explicit decarbonisation pathway, setting a target of 1 million hectares of large-scale low-carbon rice adoption by 2030. This initiative is a showpiece for using a multi-stakeholder approach involving the World Bank, International Rice Research Institute, Vietnamese agencies and private companies. It seeks to decarbonise rice using AWD, DSR, fertiliser management, water management and aligns with existing initiatives of the Vietnamese government, such as the “1M 5R” (one must, five reductions), which involves using certified seeds (One Must) and reducing inputs like seeds, fertiliser, pesticides, water, and post-harvest losses (Five Reductions).

Apart from rice as a target area in its decarbonisation strategy, Vietnam has other opportunities to exploit, especially in nature-based solutions, livestock management, low-carbon food logistics, bio-waste valorisation and precision farming using digital technologies.

From Table 2, every AMS potentially should be able to choose which food system areas and technologies to target as part of a national strategy to activate their agrifood NDC.

ASEAN’S ROLE IN ACCELERATING DECARBONISATION

ASEAN can catalyse and coordinate AMS collaboration to remove the barriers to decarbonisation shown in Table 3.

Table 3: Barriers to Decarbonisation

Barrier	Issues
Technical	Lack of access to tech, training, and extension
Financial	High costs, limited credit, low investment
Structural	Smallholder fragmentation, land tenure issues
Policy	Weak incentives, subsidies for high-emission practices
Supply Chain	Food loss, waste, outdated infrastructure
Consumption	Meat-heavy diets, low awareness
Data	Poor emissions tracking, lack of MRV systems
Institutions	Siloed governance, weak enforcement

Decarbonisation practices commonly use science-based techniques or technologies which small farmers may not be familiar with. As such, providing access to these, conducting training and using extension services to spread them are recommended. Finding financing for decarbonisation practices is a major barrier when policies and a lack of bargaining power prevent small farmers from accessing financing. There is an interlink between the structure of rural economies that are strongly influenced by weak land tenure systems, and government institutions that do not work in synergy but rather are siloed in their mandates. At a system level, barriers exist due to the lack of monitoring systems to track greenhouse gas emission reduction in fields and along supply chains, especially from waste accruing along supply chains. Indirectly, too many consumers through demand for animal protein put pressure on agriculture, which is high-carbon to produce feedstocks. Low consumer awareness about the link between crop and animal agriculture and GHG emissions makes it difficult for governments to support broader decarbonisation initiatives.

AMS are in a position to reduce the impact of these barriers on the farming community. Governments should provide the supportive governance, policies and regulatory systems to address barriers (Table 3) that are technical, financial, structural and institutional. Additionally, ASEAN can enable the sharing of incentives for smallholder farmers to practise decarbonisation, such as shown in Table 4. These incentives are important because smallholder farmers are the largest stakeholder group within the Southeast Asian food system; their numbers are estimated at 100 million, and they are responsible for producing much of the region’s food.

Table 4: Incentives for Small Farmers

Type	Description	Goal
Green finance	Loans & Insurance	De-risk adoption
Payments	Carbon credits	Reward good practices
Subsidies	Inputs, equipment	Lower barrier costs
Insurance	Parametric	Protection from unexpected shocks
Training	Demo plots, farmer field schools	Build trust and skills
Markets	Premium buyers	Create demand pull
Policy	Rules and support	Encourage transformation
Digital tools	Mobile information	Boost decision-making
Diversification	Alternate income streams	Reduce dependency on crops which require harmful practices

ASEAN, therefore, has a major opportunity—and responsibility—to lead the region in food system decarbonisation. Table 5 provides a summary of the key collaboration areas which ASEAN can foster.

Table 5: ASEAN-level Collaboration Areas for Food System Decarbonisation

Collaboration Area	Description	Anticipated Impact
Regional Roadmap	An endorsed ASEAN plan	Rational resource allocation based on priorities; Joint action
Policy Harmonisation	Common standards & regulations	Facilitates adoption & trade
Knowledge Sharing	Training & research networks	Faster innovation diffusion
Climate Finance	Regional funding pools	Scale and sustain investments; synergies between public and private financing
Supply Chain Integration	Regional certification & traceability	Market incentives for farmers and traders
Joint Innovation	Shared R&D & demo farms	Cost-sharing & tech access
Peatland & Forest Conservation	Cross-border ecosystem protection	Major emission reductions
MRV Systems	Standardised emissions tracking	Transparency & accountability for carbon market

A key priority for ASEAN is the development of a regional food system decarbonisation roadmap to encourage collaboration and innovation, allowing direct funding for AMS and Dialogue Partners towards low-emission farming, as well as to promote knowledge exchange.

Such a Roadmap would prioritise target areas for joint action and allow for the sharing of knowledge and technologies. Sharing experiences to remove barriers to decarbonisation (Table 4) and to incentivise small farmers (Table 5) are two quick wins from collaboration. In the case of rice, even non-rice-producing AMS can contribute by developing technologies such as in-field methane or nitrogen monitoring sensors for deployment in countries which grow rice or through research on improved rice genetics, which can be used by other AMS. The Roadmap would further allow ASEAN collaboration mechanisms, such as the Technical Working Groups, to set milestones which are AMS-specific but which possess a collective impact at the regional level.

In food system transformation, governance, policy and finance are important with respect to providing incentives and subsidies for low-emission practices, and providing the foundation to develop carbon markets, and helping small farmers transition to low-emission agriculture.

An ASEAN Regional Decarbonisation Roadmap with clear priorities and action would be particularly attractive to Dialogue Partners such as Japan, Korea, Canada, the EU and China, who have all expressed interest in collaborating on decarbonisation in general, and regenerative agriculture and digital agriculture specifically. In planning meetings leading up to finalisation of the FAF – Sectoral Plan 2026-2030, several Dialogue Partners have further expressed interest in funding initiatives that lead to overall improvements in mitigation and environmental health.

A key priority for ASEAN is the development of a regional food system decarbonisation roadmap to encourage collaboration and innovation, allowing direct funding for AMS and Dialogue Partners towards low emission farming, as well as to promote knowledge exchange.

Implementation of a regional decarbonisation roadmap is likely to face issues that have been faced by other regional initiatives, especially in the unequal technical capabilities of AMS in climate action generally. Multinational agrifood companies have mainly declared their support for decarbonisation, and the strong interest shown by ASEAN Dialogue Partners is a positive sign.

Another area that is ripe for regional level collaboration in climate action is the harmonisation of policies to enable standards that ensure consistency across borders, making it easier for farmers and companies to adopt climate-friendly practices and trade sustainable products, especially for sustainable palm oil, rice, and fisheries certification; and through coordinated policies on fertiliser use, water management, and emissions reporting, and frameworks to phase out harmful subsidies (e.g. for fossil fuel-based inputs).

An ASEAN-endorsed roadmap and strong supportive policy environment will lead to strengthening of the other collaboration areas shown in Table 5, namely Knowledge Sharing, Sustainable Supply Chain Integration, Joint Innovation & Technology Development, Peatland and Forest Conservation Partnerships and Regional Monitoring, Reporting, and Verification (MRV) Systems for agriculture-related emissions.

Collaboration areas to decarbonise require strong commitments from multiple stakeholders in ASEAN food systems, and care must be taken to ensure that most, if not all, sectors – public, private, civil society, philanthropic – are represented. While no quantitative data on the cost-benefits of decarbonising food systems at scale exist for Southeast Asia, AMS like Vietnam have recognised the benefits of decarbonisation to their global reputation, to their environment and to their farmers’ pocketbooks.

Apart from the above, public awareness and consumer campaigns will be needed to foster a regional culture that values sustainable food consumption, environmental conservation and supports decarbonisation.

Adoption of decarbonisation practices and technologies can be enabled by carbon pricing or incentives for climate-smart farming, subsidies for clean tech adoption, green financing for farmers and food SMEs, and accelerated by national food decarbonisation roadmaps. All these provide opportunities for ASEAN to play an influential role. ASEAN’s food systems are both vulnerable to and drivers of climate change. By acting collectively to decarbonise agriculture and food systems, ASEAN can ensure a future that has stronger regional food security, better protected natural resources, green jobs and innovations, and reduced growth in GHG emissions. Collective action will make a difference to regional emissions when individual country contributions are cumulated.

---

This is an adapted version of ISEAS Perspective 2025/93 published on 20 November 2025. The paper and its references can be accessed at this link.