Financial Strategies for Mitigating Crop Burning in the ASEAN Region

Crop residue burning continues to pose major environmental, economic, and public health challenges in ASEAN. While the region has issued guidelines and advanced various initiatives, adoption of sustainable residue management practices remains uneven. Crop residues, however, are not merely a waste product – they are an underutilised resource with significant potential for creating new value chains, supporting rural incomes, and contributing to the region’s climate, circular economy and inclusive energy transition.

A mix of public, private, and international financial mechanisms – ranging from incentives and concessional loans to carbon credits, private investment in infrastructure, and digital finance – can help small landholding farmers shift away from burning. Yet these measures require credible monitoring systems, stronger design, clearer time horizons, and better integration with technologies and market development. This brief outlines key financial strategies suited to ASEAN’s diverse agricultural landscapes and provides policy recommendations to support a long-term transition away from crop burning.