Did You Know? Southeast Asia Holds One of Earth’s Most Valuable Natural Treasures: Blue Carbon. Southeast Asia is not only rich in biodiversity, it also stores a staggering 37% of the world’s mangrove forests and 23% of global seagrass meadows, making it the largest blue carbon reservoir on the planet.
But ironically, this region is also among those experiencing the highest rates of coastal ecosystem degradation. Between 2002 and 2012 alone, 2.5 million hectares of mangroves were lost, and seagrass beds have been shrinking at an average rate of 20,000 hectares per year.
What’s driving this loss? A mix of intensive coastal development, pollution, and climate change—including rising sea levels.
What Is Blue Carbon and Why Is It Important?
Blue carbon refers to the carbon dioxide captured and stored by coastal and marine ecosystems such as mangroves, salt marshes, and seagrasses. These ecosystems are incredibly efficient at sequestering carbon, up to 10 times more per unit area than tropical rainforests. They store carbon both in the plant biomass and in the sediment beneath.
But their role goes beyond carbon absorption. Mangroves and seagrasses also help filter water, provide vital habitats for marine life, and protect coastlines from storms and strong waves. For example, during the 2004 tsunami in Aceh Besar, Indonesia, villages surrounded by 200 meters of mangroves sustained significantly less damage than neighboring areas without these natural barriers.
However, there’s a darker side. When blue carbon ecosystems are damaged, the stored carbon can be released back into the atmosphere, worsening global warming.
Even worse, climate change accelerates their destruction. Rising temperatures, changes in water salinity, and more intense storms are weakening these ecosystems, making them more vulnerable to erosion and habitat loss.
Field Challenges: Between Development and Conservation
Many coastal communities in Southeast Asia rely directly on resources provided by mangroves and seagrasses for their livelihoods. However, activities such as agriculture, shrimp farming, and industrial development continue to drive the destruction of these critical ecosystems.
Despite the enormous potential of blue carbon, only a few Southeast Asian countries have officially recognized it in their climate action plans (Nationally Determined Contributions/NDCs) under the Paris Agreement. Countries like Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Timor-Leste, and Vietnam have included blue carbon ecosystems in their national plans.
However, only Timor-Leste and Vietnam explicitly identify these ecosystems as natural carbon sinks. The others merely acknowledge the importance of protecting and restoring them, without fully leveraging their carbon storage capacity.
New ASEAN Initiative: Blue Carbon and Finance Profiling Project
There is good news. On May 21, 2025, ASEAN, together with the Government of Japan and the UNDP, officially launched the ASEAN Blue Carbon and Finance Profiling (ABCF) Project in Jakarta. This marks a significant step forward in Southeast Asia’s collective effort to manage blue carbon in a sustainable and integrated way.
What does this project aim to do? A wide range of actions, including:
- Mapping and assessing the value of carbon stored in coastal ecosystems using satellite technology and on-the-ground data,
- Developing innovative financing strategies to ensure conservation efforts go hand in hand with economic development.
The project will also support ASEAN member states and Timor-Leste by helping them to:
- Strengthen technical capacity in measuring blue carbon stock,
- Formulate national and regional policies based on scientific data,
- And most importantly, access international climate finance to restore coastal ecosystems.
Toward a Blue and Sustainable Future
Southeast Asia is home to extraordinary ecological wealth, making it a global hotspot for biodiversity and a key reservoir of carbon. However, without proper protection, the region could lose up to 42% of its species by the end of this century. And with some of the fastest-sinking coastal cities in the world, it is highly vulnerable to climate-related disasters.
Initiatives like ABCF offer renewed hope. By combining science, policy, and finance, the project has the potential to serve as a global model for blue carbon management. Moreover, the emerging blue carbon market could become a valuable revenue stream for countries investing in conservation.
