New IDH-Grow Asia Alliance to De-risk Investments in Sustainable Trade and Climate Finance Across Southeast Asia
- Grow Asia Communications
- May 8
- 4 min read
Updated: 7 days ago
In a bold move to future-proof food systems and open multi-billion-dollar market access for Southeast Asian farmers, IDH and Grow Asia have signed a strategic Letter of Intent (LoI) today, launching a new regional alliance to scale climate-resilient, deforestation-free agriculture.
Unveiled at a high-level event in Singapore during Ecosperity Week - Temasek’s annual flagship sustainability event, the agreement comes as Asian producers brace for mounting climate shocks and new trade regulations, including the EU Deforestation Regulation (EUDR) and US-led tariff realignments.
“If we do this right, we unlock market access, improve farmer incomes, reduce deforestation, and catalyze investment where it matters most,” said Daan Wensing, CEO of IDH. “This partnership builds on the strong foundations laid by Grow Asia’s country chapters over the past decade and leverages its unique role as an accredited entity of ASEAN to forge public-private-philanthropic partnerships to transform risk into opportunity at scale.”
Big Market Stakes, Real Local Impact
The IDH–Grow Asia strategic alliance aims to unlock affordable finance for millions of smallholder farmers across Southeast Asia, targeting Cambodia, Indonesia, Malaysia, The Philippines, Papua New Guinea, and Viet Nam by identifying new opportunities for suppliers, off-takers, and investors.
Together, the two organizations will harness their complementary strengths and finance mechanisms to identify, strengthen, and scale impactful solutions and market-focused coalitions that are required to address deforestation and accelerate the transition to climate-resilient agriculture for smallholder farmers in Southeast Asia. Initial activities will include:
Blended finance platforms to de-risk climate investment for regenerative practices and carbon insetting
Landscape-based action plans to reduce emissions, improve soil health, and boost yields in climate hotspots
Digital and gender-inclusive solutions to ensure women, youth, and vulnerable groups are empowered to take leadership roles in the transformation.
“We are excited about this opportunity to scale our joint impact across this dynamic region,” said Beverley Postma, Executive Director of Grow Asia. “There is a direct economic upside, for farmers, governments, investors, and communities. Our shared vision is rooted in market-led solutions that place smallholders at the center—powered by multi-stakeholder partnerships and innovative 4P blended finance models. Together, we can demonstrate that sustainable production is not only viable but offers a profitable pathway to long-term inclusivity and resilient growth.”
Regional Resilience in a Volatile Global Market
The collaboration comes as farmers in ASEAN are disproportionately affected by rising costs, inflation, and climate volatility. The partnership fills a critical gap: connecting the dots between climate-smart agriculture, private sector sourcing and investable infrastructure for real systems change, while serving as an implementing partner for Member State Governments and non-state actors who share a common vision for the region’s economic prosperity.
Key components include:
Public-private platforms to align government agencies, traders, investors, and local communities
Integrated carbon accounting and traceability tools that make sustainability measurable and verifiable
Business models for climate resilient and inclusive sourcing that incentivize sustainable and regenerative agricultural practices at scale
A pipeline of investable projects to channel blended finance from institutions like multilateral development banks, philanthropic organizations, and financial/banking institutions.
Transforming Risk into Economic Resilience
According to IDH projections, widespread adoption of regenerative practices and deforestation-free sourcing could result in:
25–40% increase in farmer net incomes through improved yields and market incentives
Up to 30% GHG emissions reduction in key sourcing landscapes
Stronger export viability amid tightening environmental compliance rules
This is not aid—It’s a strategic investment in the infrastructure of a green economy, curated to deliver lasting impact for farmers, businesses, and the planet.
About IDH
IDH (°2008) is a global organisation that brings together public and private stakeholders to make agricultural markets more sustainable and more inclusive. We work with partners to tackle challenges in global and local value chains, including climate change, unfair wages, inequality and gender disparities. Our skilled employee base consists of 400+ conveners and experts, working in 20 countries with 500+ partners.
For more, visit: www.idh.org
About Grow Asia
