How SCFAP Phase 3 is transforming Asia-Pacific supply chains?
28 Oct 20257 min read
Summary
- APEC’s Supply Chain Connectivity Framework Action Plan Phase 3 (2022–2026) focuses on resilience, decarbonization, digitalization, and inclusivity to strengthen Asia-Pacific supply chains. Economies are implementing measures such as diversified sourcing, infrastructure upgrades, and contingency planning to withstand disruptions and improve efficiency.
- Decarbonization efforts include adopting low-emission transport, green procurement, and incentives for clean energy technologies, while digitalization initiatives such as single-window platforms and secure data exchange enhance trade efficiency and transparency. Programs targeting SMEs aim to support competitiveness through technology adoption, skills development, and compliance with environmental standards.
- Phase 3 performance will be measured by 2026, with success positioning the Asia-Pacific as a benchmark for sustainable, resilient supply chains. Challenges remain in infrastructure gaps, SME capacity, and climate-related risks, making coordinated policy, investment, and adaptation essential for regional and global trade stability.
The Supply Chain Connectivity Framework Action Plan (SCFAP) was initiated by the Asia-Pacific Economic Cooperation (APEC), an intergovernmental forum for 21 member economies in the Pacific Rim. Unlike regional trade blocs with binding treaties, APEC promotes free trade on a voluntary basis through cooperation and discussion. The forum’s members account for over 60% of the world’s GDP and approximately 42% of global exports. The SCFAP is aimed at enhancing the efficiency, security, and resilience of supply chains within the Asia-Pacific region. Implemented in three phases since 2009, the framework has previously focused on identifying and addressing bottlenecks. In the current Phase 3 (2022–2026), APEC focuses on implementing and achieving measurable outcomes in resilience, decarbonization, digitalization, and inclusivity. Since Asia-Pacific is the home to many busiest ports and manufacturing hubs of the world along with thousands of small firms, the outcome will not just affect the regional trade but also the global flow of goods and services.
Decarbonization
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"She noted that “In some cases, these risks are rising sharply. Businesses, regardless of whether they are producers or consumers of such commodities, must build the resilience of their operations and capitalise on adaptation opportunities, if they are to mitigate the impact of a changing climate, protect future prosperity and facilitate the clean energy transition. Collaboration with policy makers, communities and across supply chains and industries is crucial to accelerating effective adaptation actions that contribute to a just transition.”
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