ADB optimistic about green recovery prospect in Southeast Asia

A green recovery from the COVID-19 pandemic in Southeast Asia has the potential to create 172 billion USD in investment opportunities annually and generate more than 30 million jobs by 2030, according to a new report by the Asian Development Bank (ADB).

The report identifies five areas that support a post-COVID-19 recovery through greener development, namely productive and regenerative agriculture, healthy and productive oceans, sustainable urban development and transport models, circular economy models, and renewable and efficient energy.

“This report highlights key policy priorities for Southeast Asian economies that can help ensure that both socioeconomic and environmental aspirations are served in their pursuit of economic recovery,” said ADB Director General for Southeast Asia Ramesh Subramaniam during a webinar on July 6.

“While several countries in the region have begun to support a green recovery, more needs to be done. We must encourage additional green stimulus, design carbon pricing schemes, reduce dependence on fossil-fuel intensive power, and attract private sector investors to large-scale renewable energy, sustainable transport, and clean urban projects,” Subramaniam said.

To implement a green recovery, Southeast Asian governments need to identify sustainable sources of financing that will fund climate-friendly infrastructure investments and leverage green growth opportunities.

According to the report, financing approaches should include mobilising domestic resources through environmental and carbon taxes, reducing subsidies for fossil fuels, mobilising private investors by addressing risks related to green investments, and leveraging public and private finance through green funds such as the ASEAN Catalytic Green Finance Facility. Finally, strong collaboration among neighboring economies and new partnerships with various stakeholders should be forged to ensure benefits accrue throughout the region.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.