- Decarbonization is simply too expensive for APAC manufacturers, especially SMEs, to undertake alone.
- Most decarbonization efforts today are still project-based.
- Financial incentives present a real opportunity for decarbonization at scale.
The question comes up again and again: What should governments and industry stakeholders prioritize first for decarbonization?
As a fashion manufacturer based in Seoul, South Korea, I see how policy, financing, and implementation challenges come together in real time. In the APAC region, each country is taking a unique approach to a greener economy. These are encouraging signals, but manufacturers across the region are still facing major barriers to action.
As an Editorial Member of Cascale’s APAC Policy Member Expert Team, contributing specifically to the incentives agenda, I see a number of overlapping challenges. Fragmentation, limited interoperability, insufficient incentives, and underrepresentation of decent work issues – Cascale’s recent APAC Policy Priorities paper captures all of these issues.
Amid competing customer demands and faster turnaround times, there is little leeway for manufacturers to invest the time, energy, or resources to decarbonize their facilities. The reality is that decarbonization is simply too expensive for APAC manufacturers, especially SMEs, to tackle alone. For many SMEs, decarbonization is not a strategic choice but a financial constraint, where even well-intentioned efforts are limited by access to capital. That is exactly why incentives are critical.
Decarbonization is not a willingness issue. It is a financing issue.
Without a support mechanism such as loans or blended financing, companies cannot invest in renewable energy or low-carbon equipment.
This is one of the reasons why decarbonization incentives are a key priority in the APAC Policy Priorities Paper. The paper recognizes that many suppliers and SMEs face significant barriers due to high costs and limited access to finance, and calls for targeted support mechanisms, including subsidies, preferential financing, and investment in renewable energy and low-carbon technologies. The stated goal is to make the transition more practical, more scalable, and more inclusive across the supply chain.
Also, most decarbonization efforts today are still project-based. What we need is a system-based approach across the supply chain from now on. This is why we need to invest in expanding infrastructure, more coordinated support, and policy conditions that help solutions scale.
Incentives are also very critical. However, incentives without execution or without reliable data or without verified data are not enough on their own. We need a clear implementation framework to scale the incentives.
If I had to choose one action item for decarbonization, it would be linking financial incentives directly to the verified data. This could include preferential financing for facilities with verified emissions data, tax incentives tied to measurable reductions, or blended finance mechanisms that reduce upfront capital investment for renewable energy adoption. For example, factories with verified Scope 1 and 2 emissions data could access preferential financing rates or performance-based incentives tied to demonstrated reductions. This creates both accountability and motivation. Without such incentive mechanisms, scaling will be difficult.
If we want decarbonization to move faster across APAC, we need policies and financing approaches that reflect how manufacturers actually operate. That starts with making support accessible, practical, and tied to real progress.
Curious to learn more? Explore the full APAC Policy Priorities Paper and, for members, continue the conversation through the recent webinar featuring insights from APAC Policy MET members.
Download the PaperMembers: Watch the Webinar on Cascale Connect