Nature-based Solutions (NbS) are increasingly recognised worldwide as effective responses to the climate crisis. These approaches work with nature to reduce greenhouse gas emissions, conserve biodiversity, and help communities adapt to climate impacts through more sustainable livelihoods. Examples such as mangrove restoration, peatland protection, and agroforestry demonstrate the promise of NbS, which – in theory – offer benefits for both people and the planet. However, their practical success relies heavily on how they are governed.

Southeast Asia holds some of the world’s most significant carbon sinks, including tropical forests, wetlands, seagrass meadows, and agricultural soils. These ecosystems play a vital role in capturing carbon dioxide, supporting biodiversity, and sustaining local economies. Yet, they face mounting pressure from development and changing land use, making it challenging to balance environmental protection with economic and social needs.

The region’s tropical ecosystems are uniquely powerful carbon sinks because rapid plant growth, dense biomass, and waterlogged soils slow decomposition and preserve carbon for long periods. Safeguarding these ecosystems is crucial for global climate change mitigation efforts.

Environmental governance encompasses the institutions and processes that guide decisions on environmental protection. It involves governments, communities, businesses, and other stakeholders in setting rules, making plans, taking action, and monitoring outcomes. Effective governance is essential for NbS to deliver sustained benefits; however, research reveals persistent weaknesses across Southeast Asia. Challenges such as institutional constraints, lack of capacity, and inadequate funding or technology often limit the potential of NbS.

Governance challenges on the ground

Research from the Carbon Governance in Southeast Asia (CGSEA) programme points to several issues that restrict NbS effectiveness. NbS projects are often managed by separate ministries – such as agriculture, environment, forestry, and finance – that rarely coordinate their actions. This lack of alignment results in competing agendas, overlapping legislation, and inconsistent policy enforcement, which undermine restoration and protection efforts. Funding and investment, particularly through carbon markets, are also problematic. While supports from private sectors can help scale up NbS beyond small pilots, projects must be integrated with national climate strategies and involve local communities. Measurement and verification challenges also exist, especially in diverse forests where different tree species absorb carbon at different rates. This makes it hard to quantify total carbon storage for monetisation in offset markets.

Fairness and equity also remain significant concerns. Communities that have traditionally managed and depended on carbon-rich ecosystems are frequently excluded from decision-making. In many cases, their land and resource rights are restricted or removed without consent or compensation, leading to loss of livelihoods, poverty, or economic migration that can disrupt ecosystems elsewhere.

If these governance challenges are not addressed, NbS actually harm both the ecosystems and communities that rely on them. This emphasises the need for actionable insights to optimise NbS, ensuring Southeast Asian countries meet climate goals in effective and inclusive ways.

Opportunities for positive change

Despite these obstacles, there are promising signs of progress. Awareness is growing that NbS must also address broader issues like food and water security, disaster risk reduction, biodiversity conservation, and equitable resource distribution and rural livelihoods. For example, community-driven mangrove restoration in Krabi, Thailand, has improved flood resilience while supporting fisheries and ecotourism. Regionally, ASEAN is taking a more active role in aligning national climate strategies with international agreements, such as the 2015 Paris Agreement. The ASEAN Climate Change Strategic Action Plan and Peatland Management Strategy, for example, both aim for a resilient and low-carbon Southeast Asia by 2050.

Financing mechanisms are also advancing, with blended finance combining public, private, and community resources to spread risk and rewards more fairly. New tools such as biodiversity credits and debt-for-nature swaps hold promise for directing funds to local conservation, boosting community participation, and supporting NbS that address ecological and socioeconomic needs.

Connecting scales and sectors

Nested governance is needed for NbS to succeed at scale. Local, national, and regional initiatives must complement each other and reflect real-world contexts. This requires embedding principles such as Free, Prior and Informed Consent into NbS planning, aligning national climate commitments with local policies, and fostering dialogue across sectors and administrative levels. Recognising Indigenous knowledge and customary land rights, and empowering communities to manage their ecosystems, have been shown to improve outcomes.

A well-coordinated and inclusive approach is essential for Southeast Asian countries to meet climate targets, strengthen resilience, and build societal cohesion. NbS hold genuine potential to tackle climate change in sustainable, fair, and inclusive ways. With extensive carbon sinks and a rich tradition of environmental stewardship, Southeast Asia is well-placed to lead. However, unlocking the full benefits of NbS in the long term will require changes in governance, financing, and implementation, with careful attention to who makes decisions, who gains, and who shoulders the costs.

By investing in comprehensive, multi-level NbS, Southeast Asia can lead the way in managing its vital carbon sinks for a more just and resilient climate future.

The CGSEA project is funded by the Social Science Research Thematic Grant (SSRTG) from the Ministry of Education, Singapore.