A new report from Bain & Company, Microsoft and Singapore’s Temasek Holdings shows that Southeast Asia will need US$2 trillion in investment in the next ten years to build sustainable infrastructure to help reduce greenhouse gas emissions in the region.
According to the report, this includes investments in areas such as renewable energy, electric vehicles and waste management.Southeast Asia’s Green Economy: Opportunities on the Road to Net Zero.”
According to the report, last year, investors invested only about US$9 billion in green companies and assets. According to the report, to achieve the US$2 trillion investment figure, the public, private, and charitable sectors in the region must work together to unlock the full potential of Southeast Asia.
Climate change is a serious problem in Southeast Asia because it has experienced disproportionate climate disasters and extreme weather events.
Dale Hardcastle, Bain’s Global Sustainability Innovation Co-Director, said that although the fight against Covid-19 is still the top priority of most governments, a lot of attention in Southeast Asia last year was on climate. Acting and thinking about the necessity of a green economy go to the central government.
In this aerial photo taken on Wednesday, November 27, 2019 in the Penajam area of East Kalimantan, Borneo, Indonesia, a road passes through palm plantations and tropical rain forests.
Dimas Adion | Bloomberg | Getty Images
“We are beginning to see the government try more cross-regional cooperation, whether it is around green finance, energy transition or other new measures,” he added.
this The United Nations describes the so-called green economy As a country driven by investment in economic activities, infrastructure and assets, these investments can reduce carbon emissions and pollution. The green economy also improves energy and resource efficiency, and prevents the loss of biodiversity and ecosystems.
The report found that about 90% of Southeast Asia’s carbon emissions can be achieved through the transition from fossil fuels to clean energy such as wind and solar Agricultural food production More efficient.
According to the report, although agriculture is an important contributor to Southeast Asia’s economy, it is also a major source of carbon emissions. Countries must work with smallholder farmers to encourage them to adopt more sustainable farming practices to reduce carbon dioxide emissions into the atmosphere.
According to the report, if countries take action today, by 2030, the region’s green economy can contribute approximately US$1 trillion in economic opportunities and create approximately 5 to 6 million new jobs.
Hardcastle told CNBC that although many regional conglomerates and large companies in Southeast Asia have begun to consider sustainable development compared with their counterparts in the United States and Europe, their development speed has been slower.
“They are starting to think critically about how they can start investing in a green economy-whether it is for their own interests to protect the companies they own or to take more concerted action to combat climate change, it is great to see that things are starting to move,” he said.