National green industrial policies and rising protectionism threaten global sustainable industrialization, especially for small nations needing cross-border coordination. This paper analyzes institutional needs for multilateral green policy coordination, urging developing nations to prioritize strategic regional coordination over mere integration to avoid competitive traps. Using ASEAN as a case study, key insights derived include the need for strong domestic institutions, the value of issue-based cooperation, mechanisms to mitigate competitive risks, and the limits of highly flexible institutional models.
