APEC deepens relationships to improve sustainability and inclusion

APEC officials, private sector representatives, environmental experts, international organization representatives and youth members they’re studying business practices and financing as ways of economic growth that ensure sustainability and inclusion in the region

The APEC region suffers more than 70% of the world’s natural disasters, and disaster-related losses amount to $100 billion annually.

Therefore, APEC needs to promote concrete actions to achieve more sustainable economic growth.

The economic risk of climate change in APEC is significant. Even in the best of cases, when average temperatures remain at or below 2 degrees Celsius, or relative to pre-industrial levels, APEC can expect gross domestic product (GDP) losses of 0.6 to 11, 3 percent by 2050 relative to a scenario without climate change, according to APEC’s Policy Support Unit.

In a dialogue exploring ways to enhance partnerships for sustainable economic growth, held in Chiang Mai, Thailand’s Permanent Secretary for Foreign Affairs, Thani Thongphakdi, highlighted the biocircular-green economy (BCG) model as a strategy post-pandemic growth.

It combines science, innovation and technology to promote the efficient use of resources, maintain and restore ecosystems and reduce waste in an attempt to build a system in which the economy and business can prosper.

At the core of this BCG approach is an understanding of the complex interactions between the environment, society, and the economy.

Traditionally, economic policies have ignored the impact of economic activities on the environment and have not taken into account the costs of these activities on the economy and society.

APEC seeks to strengthen cooperation on sustainable forest management

In response, Thailand, as the host of APEC 2022, introduced the BCG economy model, which aims to comprehensively address environmental challenges such as climate change, extreme weather and natural disasters.

“On our road to recovery, it is crucial to prioritize investment in building sustainability and resilience to future shocks,” said Thani, who is also the APEC 2022 Senior Officials Chair.

“We need to encourage public-private partnerships in this area to ensure that our policy encourages sustainable business practices and promotes investment and financing,” Thani added.

On the need to invest in the health of people and the planet for recovery efforts, Christophe Bahuet, Deputy Regional Director for Asia and the Pacific of the United Nations Development Program, highlighted how health and the environment environment are closely interconnected for an effective response to COVID-19.

“Economies must increase investments in building resilient and sustainable health systems to support the immediate response to COVID-19 and help prevent future health crises,” Bahuet said.

“Achieving the United Nations Sustainable Development Goals by 2030 would require intensive investment,” Bahuet said. “With the pandemic, socio-economic and geopolitical challenges, and growing climate and environmental risks, those additional investment needs will only be greater.”

In the dialogue, policymakers heard from private sector representatives on what drives companies to adopt more sustainable practices, as well as the challenges they face during this crucial transition.

The discussion addressed the fault lines laid bare by COVID-19 and the resulting economic repercussions in the APEC region.

The pandemic has impeded years of economic and development progress and has added further pressure to vulnerable and small businesses. Speakers and delegates recognized that a balanced, resilient and sustainable economy is needed to ensure that economic progress benefits all.

Delegates also discussed policy levers to expand access to sustainable finance and investment, given its critical role in fostering and empowering small businesses.

They also shared the challenges they face from gaps in sustainability implementation and the opportunities that exist to bridge those gaps and ensure that policies benefit all people.

“To achieve a greener and more inclusive future, we need to continue to cooperate in APEC,” said Matt Murray, Chairman of the APEC Economic and Technical Cooperation Steering Committee.

“Expanding our network of partnerships with diverse stakeholders from the private sector and civil society will help us formulate better policies to attract more interest in sustainable practices and strengthen the resilience of our economies,” he concluded.