By Dr Venkatachalam Anbumozhi, Senior Research Fellow for Innovation: April 22 is Earth Day – a reminder to protect the air we breathe, the water we drink, and the natural places we cherish. Since its inception in 1970, Earth Day has helped transform how we understand and act on our impact on the planet. Today, unsustainable production and consumption, climate change, and habitat loss pose growing threats to the ecosystems we depend on.

While we celebrate environmental awareness, a haze – sometimes literal, always metaphorical – often lingers over Southeast Asia. This haze, symbolic of a deeper environmental issue, often originates not from distant industrial hubs but from nearby farmlands. It is a stark reminder of the persistent and often overlooked challenge of forest clearance and the burning of agricultural waste.

ASEAN is a global agricultural powerhouse, feeding millions within and beyond the region. From the expansive rice paddies of the Mekong Delta to the palm oil plantations of Indonesia and Malaysia, agriculture is central to livelihoods and national economies. However, every harvest produces vast amounts of residual biomass – rice straw, corn stover, palm fronds, empty fruit bunches, and processing residues. Historically, the easiest and cheapest way to deal with this waste has been open burning – a practice that significantly contributes to the transboundary haze episodes that periodically blanket ASEAN’s mega-cities. The consequences are severe: respiratory illnesses, school closures, flight disruptions, and substantial economic losses affecting tourism and productivity.

Encouragingly, countries and communities across the region are adopting innovative approaches to manage this challenge. Solutions fall into two main categories:
In-situ practices involve integrating crop residues back into the soil to enhance fertility and carbon sequestration.
Ex-situ strategies repurpose the waste into valuable products elsewhere – such as using it for energy generation in coal and steel plants, or fermenting it into biogas for cooking and electricity.

When managed wisely, this biomass can become a valuable resource – increasing income, supporting local industries, and addressing environmental challenges.

One significant step forward is the implementation of ASEAN guidelines that encourage coal-fired power plants to co-fire agricultural waste. This not only incentivises farmers to collect and sell their waste but also reduces coal use – a major contributor to greenhouse gas emissions. Encouragingly, this initiative is already showing results across Southeast Asia.

In parallel, some governments are subsidising the cost of machinery to help farmers efficiently collect crop stubble. These subsidies range from 50% to 80% of the equipment cost, with some pilot programs even offering machinery for free. Such initiatives align with the principles of a circular economy and are gaining traction within the ASEAN Economic Community framework.

At its core, the circular economy is founded on a simple yet powerful idea: waste is not waste until it is wasted. In this model, agricultural residues are transformed into feedstocks for new industrial processes and sustainable products.

Yet, the biggest barrier to scaling circular economy solutions is cost. Collecting, transporting, and processing agricultural waste is often more expensive than the value of the resulting products. Overcoming this challenge requires innovation – developing high-value applications where the end product justifies the investment in processing.

Beyond low-value energy uses, farming communities must adopt technologies that convert agricultural waste into high-value products. This creates strong market demand, prompting industries to seek out agricultural residues. Examples of such high-value uses include biochar, biodegradable packaging, and cellulose extraction. These represent untapped opportunities for waste management, deforestation reduction, and industry creation.

Consider this example: if one tonne of sugarcane bagasse is used for bioenergy, it can replace around 700 kg of coal – worth about $10. However, if the same bagasse is processed into cellulose pulp, it can yield 150 kg of cellulose worth approximately $150. This multi-fold increase in value highlights the transformative potential of moving from low-value burning to high-value material recovery.

Many stakeholders – from research institutes to entrepreneurs and large corporations — are already working on innovative solutions. However, rapid scaling is crucial. Strong policy support, clear regulatory standards for the circular economy, and access to start-up finance are essential to unlock this transformation. If we get this right, our agricultural landscapes can shift from being an environmental liability to an economic engine – enriching farmers, fueling industries, and improving air quality for millions.

Importantly, this is not just an ASEAN challenge – or opportunity. From North America’s wheat fields to Brazil’s sugarcane plantations, agricultural waste management is a global issue. The strategies developed in ASEAN can inspire solutions worldwide. International climate finance and technology partnerships can further accelerate the deployment of circular solutions where they are needed most.

The future is promising – if we act now. This Earth Day, let a collective call to action echo across the region, from smallholder farms to government halls. It’s time to cultivate a truly sustainable future, rooted in the wisdom of nature’s own circular cycles. The health of our planet – and ourselves – depends on it.

This opinion piece was written by ERIA's Senior Research Fellow for Innovation, Dr Venkatachalam Anbumozhi. Click here to subscribe to the monthly newsletter.

Disclaimer: The views expressed are purely those of the authors and may not in any circumstances be regarded as stating an official position of the Economic Research Institute for ASEAN and East Asia.