A new guide is now available to help financial institutions, investors and corporate entities in ASEAN determine how to effectively channel capital towards resilience building activities. Developed through a collaboration between the ASEAN Capital Markets Forum (ACMF), the ASEAN Taxonomy Board (ATB), the Sustainable Finance Institute Asia (SFIA), and UNEP FI, the first version of the “Mitigation Co-benefit and Adaptation for Resilience Guide” marks an important milestone in the evolution of sustainable finance in ASEAN. The Guide provides practical guidance for policymakers and taxonomy users in identifying and assessing projects and initiatives that contribute to climate adaptation and resilience outcomes. It is designed to support the implementation of the climate change adaptation objective within the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy).

The Guide’s October 22 launch at the 2026 ACMF International Conference comes at a critical time for Southeast Asia. The region faces increasing exposure to climate-related risks, including rising sea levels; biodiversity loss; and extreme weather events such as floods, droughts and extreme heat. However, adaptation finance in ASEAN remains scarce and predominantly public. Against an estimated cumulative regional need of around USD 422 billion by 2030, including USD 129 billion required specifically for adaptation, private investment is constrained by uncertainty over the identification, measurement and bankability of adaptation activities. Building on a white paper published last year, the Guide seeks to address this challenge by providing a regional resource that improves clarity, consistency and confidence in identifying, assessing and financing adaptation solutions.

The roles of taxonomies globally and in ASEAN

As sustainable finance markets mature across Asia Pacific, investors, banks and regulators increasingly turn to sustainable finance taxonomies, which provide a common language for identifying economic activities that contribute to environmental objectives. Sustainable finance taxonomies help determine what qualifies as a sustainable activity and play a key role in advancing net-zero transitions, climate adaptation and resilience, biodiversity protection and other sustainable development objectives. By improving transparency, credibility and comparability, taxonomies can help unlock capital flows and support greater confidence among market participants.

The ASEAN Taxonomy plays a particularly important role as the overarching guide for a diverse and rapidly growing economic bloc. It provides an overarching structure and common language that supports interoperability, complementing national sustainable finance frameworks in Southeast Asia while recognizing different levels of economic development and market maturity among ASEAN Member States.

The importance of clarity and consistency in scaling adaptation finance

One of the key barriers to scaling adaptation finance is the absence of consistent approaches for identifying and assessing adaptation activities. Unlike mitigation projects, whose outcomes can often be measured through greenhouse gas emissions reductions, adaptation activities are frequently context-specific and location dependent, and can be more difficult to evaluate using standardized frameworks. This uncertainty can create challenges for investors, financial institutions and companies seeking to direct capital towards adaptation and resilience-building initiatives, and underscores the need for contextualization.

Clear methodologies for assessing adaptation activities and evaluating resilience outcomes can enhance a potentially impactful project’s ability to attract financing and be recognized within sustainable finance frameworks—without which, it may otherwise struggle to advance beyond the concept stage.

A practical companion to the ASEAN Taxonomy

The Guide aims to provide this clarity and consistency for adaptation projects and initiatives as a living, principles-based framework that builds on the ASEAN Taxonomy’s existing approach, including guiding principles, guiding questions, technical screening criteria and the use of climate risk and vulnerability assessment. It also supports the ASEAN Taxonomy’s emphasis on an orderly and just transition, while reflecting the diverse development needs of ASEAN Member States.

As a voluntary, non-binding companion to the ASEAN Taxonomy, the Guide is intended to support the consistent and robust application of climate adaptation assessments for the Taxonomy’s Environmental Objective 2 (EO2): Climate Change Adaptation. None of its approaches or recommendations should be interpreted as mandatory, nor does it introduce separate eligibility thresholds or requirements. The Guide is also intended to support the development and adoption of region-specific data, tools and resources.

The flexibility of its approach allows the Guide to evolve over time alongside emerging market practices and scientific developments.

Supporting multi-stakeholder efforts regionally and globally

Importantly, the Guide reflects the multi-stakeholder approach to sustainable finance development in ASEAN. Its development drew on expertise from policymakers, regulators, financial institutions and technical experts across the region, demonstrating the value of regional cooperation in addressing common sustainability challenges.

The Guide also contributes to a broader international effort to strengthen sustainable finance taxonomies and improve their usability. UNEP FI has highlighted the growing importance of taxonomy interoperability and the need for practical implementation tools that can help jurisdictions and market participants apply taxonomy frameworks effectively. By providing region-specific guidance for adaptation and resilience, the Guide strengthens the ASEAN Taxonomy’s role as a practical tool for mobilizing investment towards climate resilience outcomes while supporting consistency in adaptation assessments across Southeast Asia.

Looking ahead

As climate risks continue to intensify and adaptation financing needs increase, financial institutions and investors can benefit from resources such as the Guide to help guide credible investment decisions for adaptation and resilience projects and initiatives across ASEAN.

Future versions of the Guide are expected to expand sector coverage, incorporate refinements based on stakeholder feedback, and strengthen approaches for screening maladaptation. The public consultation of Version 1 planned in early 2027 will continue to inform the refinement of the Guide and support broader market adoption across the region.