Southeast Asian and European leaders moved to strengthen sustainability and energy cooperation on Thursday, 7 May as rising fuel costs, supply chain disruptions, and climate risks place mounting pressure on regional economies.

At the inaugural ASEAN-EU Sustainability Summit 2026, officials and business executives warned that sustainability has shifted from a long-term policy objective into an immediate economic necessity as the region grapples with volatility tied to the ongoing energy crisis and global trade disruptions.

Held alongside the ASEAN Leaders’ Summit, the gathering brought together more than 200 policymakers, diplomats, and industry leaders from ASEAN and Europe to discuss strategies on climate action, energy transition, trade, food security, and resilient supply chains.

Philippine Finance Secretary Frederick Go said the Philippines is seeking deeper economic engagement with Europe as sustainability and investment priorities increasingly overlap.

“Europe and the Philippines have a stable and evolving partnership, built on trade, investment and development cooperation,” Go said.

“Today, it is also focused on sustainability, climate and inclusive growth, and we remain committed to deepening our collaboration with the EU and advancing our shared priorities together.”

Go described the proposed EU-Philippines Free Trade Agreement as the country’s “most important economic agreement this year,” adding that both sides are targeting its signing by the third quarter of 2026.

Business groups also stressed that economic resilience can no longer be separated from sustainability policies, particularly as energy costs continue to ripple across industries.

“At a time of global uncertainty marked by energy volatility, supply chain disruptions, and rising costs, this Summit could not be more timely,” said Paulo Duarte, president of the European Chamber of Commerce of the Philippines (ECCP) and member of the EU-ASEAN Business Council executive board..

“It reflects a shared recognition across the region that sustainability is no longer optional. It is central to economic resilience, competitiveness, and long-term growth,” Duarte added.

EU Ambassador to the Philippines Massimo Santoro said governments must ensure that climate commitments are matched with adequate financing and implementation support.

“While we are rightly ambitious in setting our targets for climate and environmental action, we do not always synchronize the financial resources needed to implement that ambition,” Santoro said.

“Strengthening the link between ambition and financing is essential to turning policy into real, on-the-ground impact.”

Santoro added that the current energy situation should accelerate broader regional cooperation on trade, renewable energy, and disaster resilience.

“There should be no silos between cooperation on trade, climate and disaster risk reduction, as these are interconnected challenges,” he said.

Regional officials likewise emphasized that sustainability planning must be integrated into long-term economic policy.

Indonesia Deputy Minister for National Development Planning Leonardo Teguh Sambodo said ASEAN economies face the dual challenge of maintaining growth while reducing emissions.

“The only viable path forward is cohesive planning that integrates sustainability into every aspect of development,” Sambodo said.

For the Philippines, officials said the energy transition also presents opportunities to attract investments.

“What can be seen right now as a challenge can be turned into an opportunity — an opportunity not just for investments to come into the Philippines, but an opportunity that provides co-benefits as we work towards a greener future and greener sources of energy,” said Robert Borje, Climate Change Commission vice chairperson and Executive Director.

During sectoral discussions, business leaders highlighted the importance of stronger collaboration between governments and private firms in strengthening circular economy systems and protecting supply chains.

Department of Environment and Natural Resources Undersecretary Jonas Leones said circular economy initiatives would require greater investor participation.

“The best lesson there is that the government cannot do it alone,” Leones said. “We need investors, the private sector, to really implement and move forward.”

President of Coca-Cola PhilippinesAntonio Del Rosario said Extended Producer Responsibility policies could strengthen regional waste management and recycling systems by bringing together governments, businesses, non-government organizations, and informal waste workers.

Meanwhile, supply chain security and food resilience also emerged as key concerns during the summit.

Philip Morris International Director for Illicit Trade Prevention Rodney van Dooren said private firms should help reinforce government enforcement systems through stronger supply chain monitoring and information sharing.

Boehringer Ingelheim executive Cynderella Galimpin warned that slow regulatory approval processes for animal vaccines could threaten food supply stability during disease outbreaks.

“Today, regulatory approval timelines for vaccines across Southeast Asia range from one to three years, but when the outbreak is already there, that is too late, as it has already impacted food supply, trade and the economy,” Galimpin said.

Closing the summit, EU-ASEAN Business Council Executive Director Chris Humphrey urged governments and businesses to turn policy discussions into concrete action.

“We need governments, businesses and citizens to take sustainability more seriously in all its aspects, so we can all live a longer life, a healthier life, and look after our planet at the same time,” Humphrey said.