In December 2025, the Center for Global Sustainability (CGS) at the University of Maryland partnered with the Asian Development Bank Institute (ADBI) and leading Indonesian institutions (LPEM University of Indonesia, CSIS Indonesia) to convene “Regional Cooperation for a Greener Future: Action in Asia and the Pacific with Indonesia in Focus” in Tokyo. This two-day conference brought together high-level officials, researchers and topic experts to explore how regional collaboration can accelerate net-zero strategies, energy transitions and sustainable development, with a particular focus on Indonesia.
CGS Director Nate Hultman, Assistant Director Jiehong Lou, and Research Associates Molly Schreier and Claire Squire led sessions throughout the conference, sharing new research and engaging in high-level discussions on industrial decarbonization, clean energy investment and the importance of regional collaboration.
Below are key highlights from each day of the event.
Day 1: Regional Cooperation in Asia and the Pacific Regions
Across sessions, participants emphasized that regional coordination will be essential to achieving ambitious climate goals. Speakers highlighted opportunities for:
- Transparent and harmonized regional cooperation for resilient and sustainable clean energy;
- National and multilateral strategies for emissions measurement and reporting systems;
- Stronger public-private partnerships and policy frameworks for financing green industrialization.
Participants also stressed that adaptation must receive greater attention alongside decarbonization, particularly through disaster risk financing, insurance mechanisms, and improved climate-economic modeling that integrates environmental and economic feedback loops.
Climate, Trade, and Competitiveness
Day 1 discussions underscored the importance of stronger regional coordination to advance clean energy supply chains, reduce trade barriers, and address growing risks associated with concentrated production and protectionist policies.
Participants emphasized the current economic impacts on global and Asian climate trade:
- National trade and industrial policies, such as export controls, local content requirements, and sustainability standards can play a role in shaping cleaner value chains;
- Carbon pricing schemes, like the carbon border adjustment mechanisms (CBAM), will likely expand, affectingIndonesia’s export competitiveness;
- Green trade effectiveness ultimately depends on greater transparency, international standards, and the continuance of multinational dialogues.
Improving emissions reporting and strengthening Indonesia’s carbon market were identified as key steps for attracting private finance and maintaining export competitiveness in a low-carbon global economy.
Day 2: Green Industrialization and Local Benefits and the Case of Indonesia
Throughout Day 2, several sessions examined Indonesia’s industrial policy strategy, particularly the push for mineral downstreaming (processing raw minerals domestically) and adding value to nickel by moving from ore exports to refined products and battery grade materials.
While downstreaming has increased production, attracted foreign investment, and boosted GDP growth in resource-rich regions, discussions highlighted important challenges:
- Continued reliance on coal power at industrial sites risks increasing emissions and undermining Indonesia’s broader decarbonization commitments;
- Despite growing regional GDP and fiscal revenues in mining areas, benefits have been unevenly distributed, with limited spillover to local communities and persistent inequalities;
- Rapid industrial expansion has exposed regulatory inconsistencies, oversight challenges, and rent-seeking behavior, which may weaken long-term development outcomes;
- Export restrictions, incentives, and state-led interventions have created market distortions, while limited fiscal space constrains the government's ability to sustain long term industrial support.
Speakers emphasized that industrial policy must align with decarbonization goals, support innovation, and ensure that growth translates into meaningful local benefits.
EV Batteries and the Future of Nickel
Indonesia’s role in the electric vehicle battery supply chain was another major focus. The country has made significant progress in attracting global investment and scaling battery production capacity. However, speakers cautioned against overreliance on nickel-driven narratives.
Key themes included:
- Fluctuating nickel prices and rapidly expanding global supply raise concerns about market overcapacity and Indonesia’s increased exposure to commodity driven cycles;
- Uncertainty surrounding the competitiveness of nickel batteries amidst growing industry preference for lithium ion batteries highlights the importance of avoiding infrastructure lock-in and planning for technological shifts in battery chemistry;
- Nickel mining and processing activities pose significant risks to laborers, forests, water systems, and ecosystem biodiversity if not managed with proper safeguards.
Participants stressed the importance of realistic planning, regional cooperation within ASEAN, and ensuring that resource development contributes to long-term transformation rather than short-term gains.
CGS released a comprehensive stocktake of Indonesia’s existing nickel smelter projects. Visit the Nickel Smelter database and read the accompanying policy brief.
Environmental, Social, Governance (ESG) Standards and Investment Policy
Sessions on ESG integration examined how sustainability standards can better support responsible mining and industrial development. Presenters highlighted gaps in site-level reporting, Scope 3 emissions disclosure, and environmental data transparency. Improving reporting clarity and ensuring that smaller firms can meet requirements were identified as critical priorities to strengthen governance and scale sustainable investment.
Local Benefits, Public Health, and Inclusive Growth
Beyond industrial strategy, the conference addressed the broader social and environmental implications of economic growth.
New research on indoor air pollution in Jakarta demonstrated that short-term adaptation measures, such as air purification, can generate measurable child health benefits even as structural reforms to address fossil fuel combustion remain essential.
Discussions on nickel-producing regions revealed a complex picture: rising regional GDP and fiscal revenues alongside environmental degradation, informal labor expansion, infrastructure strain, and agrarian conflict. Speakers emphasized that stronger governance, community engagement, and long-term planning are necessary to ensure that value addition translates into sustainable local development.
Looking Ahead
The conference underscored that decarbonizing the energy sector is essential, but not sufficient on its own. Achieving a greener and more inclusive future for Asia and Indonesia will require coordinated regional action, credible climate governance, climate-focused industrial policy, and sustained investment in both mitigation and adaptation.
CGS is proud to have contributed research and expertise to these critical conversations and looks forward to continuing partnerships across Asia and the Pacific to accelerate ambitious, implementable climate action.
