This article summarizes the most significant climate threats and environmental challenges specific to each of the ten ASEAN member countries and the region as a whole. The current priority is to prevent the exacerbation of the impacts caused by natural disasters through additional anthropogenic accidents, as the combined impact of these factors could lead to negative synergies with potentially catastrophic results. In this regard, it is emphasized that ASEAN is making significant efforts to modernize infrastructure and develop appropriate policy and institutional mechanisms to facilitate the implementation of the circular economy model in the region, which is seen as a key tool for mitigating damage from climate risks. In general, the process of introducing the concept of circular economy in ASEAN countries is progressing, although relatively slow. At the same time, some countries are taking significant steps to move to a sustainable development trajectory. In the countries where there has been a relative slowdown or stagnation in the introduction of circular economy, overcoming policy obstacles to ensure institutional prioritization is key to progress. It is important to create a sustainable understanding that the implementation of circular economy is not only a mechanism for environmental protection, but also an effective tool for achieving economic growth, deepening international integration and ensuring long-term sustainability of the region’s development as a whole.