A green recovery from the COVID-19 pandemic in Southeast Asia has the potential to create $172 billion in investment opportunities a year and generate more than 30 million jobs by 2030, according to a new report from the Asian Development Bank ( ADB).
Implementing a Green Recovery in Southeast Asia (Implementing a Green Recovery in Southeast Asia) considers how green growth can help countries implement an economic recovery from the impacts of COVID-19.
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 transportation models, economic models circular, and renewable and efficient energy.
“This report highlights key policy priorities for Southeast Asian economies that can help ensure that both socio-economic and environmental aspirations are addressed in their pursuit of economic recovery,” said ADB Director General for Southeast Asia Ramesh. Subramaniam.
“Although several countries in the region have begun to support an ecological recovery, more needs to be done. We must encourage more green stimulus, devise carbon pricing systems, reduce reliance on fossil fuel-intensive energy, and attract private sector investors to large-scale renewable energy projects, sustainable transportation, and clean cities.”
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The report notes that without concerted action to tackle the environmental crises of climate change and biodiversity loss, the region’s long-term growth prospects could be limited. A green recovery from COVID-19 is crucial to ensuring an economically and environmentally resilient future.
Other policy options identified in the report include stepping up research on green technologies, encouraging the participation of women entrepreneurs in green business opportunities, and better managing biodiversity through open and integrated data systems.
To carry out a green recovery, governments in Southeast Asia must identify sustainable sources of finance that finance investments in climate-friendly infrastructure and take advantage of green growth opportunities.
According to the report, financing approaches should include mobilizing domestic resources through carbon and environmental taxes, reducing fossil fuel subsidies, mobilizing private investors by addressing the risks associated with green investments, and leveraging public and private finance through green funds such as the ASEAN Green Finance Catalyst Fund.
Finally, strong collaboration between neighboring economies and new partnerships with various stakeholders must be forged to ensure that the benefits accrue across the region.
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