Ad Banner
Advertisement by Open Privilege

Southeast Asia's Green Investment is "Woefully Off Track"

Image Credits: UnsplashImage Credits: Unsplash
  • South-East Asia is significantly lagging in its green investment efforts, with a growth of 20% last year falling short of the US$1.5 trillion required this decade to meet climate goals, putting the region at risk of not fulfilling its 2030 climate pledges.
  • Despite the challenges, there are opportunities for growth in green investments, with the report identifying 13 "investable ideas" that could potentially bring in US$150 billion by 2030, including sustainable agriculture and utility-scale renewable energy plants.
  • The region's heavy reliance on fossil fuels and the need for a substantial increase in renewable energy adoption are highlighted as major obstacles, alongside the necessity for creative financing solutions and regional cooperation to bridge the green investment gap.

In the heart of South-East Asia, a region known for its vibrant cultures, lush landscapes, and booming economies, there lies a concerning environmental narrative that is unfolding. Despite the global push towards sustainability and reducing carbon footprints, South-East Asia finds itself "woefully off track" in terms of green investments necessary to combat climate change. This revelation, highlighted in a recent report by global consultancy Bain & Co, in collaboration with green investment group GenZero, Standard Chartered Bank, and Temasek, sheds light on the urgent need for the region to recalibrate its approach towards environmental sustainability.

The report paints a stark picture of the current state of green investments in South-East Asia. Despite a 20% growth in green investment last year, the region falls significantly short of the US$1.5 trillion required this decade to meet its climate goals. The energy consumption in South-East Asia is expected to surge by 40% within this decade, yet the reliance on fossil fuels remains steadfast, contributing to the rise in climate-warming carbon dioxide emissions. This dependency not only exacerbates the global climate crisis but also puts the region at risk of overshooting its 2030 pledges by a staggering 32% if the current trajectory continues.

Kimberly Tan, GenZero’s managing director, emphasizes the critical need for an acceleration of efforts by countries, corporates, and investors. "South-East Asia remains woefully off-track," she states, underscoring the imperative for immediate action to steer the region back towards its green commitments. The report identifies a mere 10% of total energy supplies in the region coming from clean energy sources, highlighting a significant area for improvement and investment.

The challenges in transitioning to renewable energy are multifaceted. The report points out the over US$1 trillion of unrecovered capital in young coal plants, predominantly in Asia, which hampers the growth of renewables. Tim Gould, chief energy economist at the International Energy Agency, suggests the need for "creative financing approaches" to navigate this obstacle. Additionally, the report notes that only four of the ten countries in the region – Indonesia, Malaysia, Singapore, and Vietnam – have made strides in putting a price on carbon, a crucial step towards incentivizing green investments.

Despite these challenges, the report offers a glimmer of hope, identifying 13 "investable ideas" that could potentially bring in US$150 billion by 2030. These include sustainable agriculture and utility-scale renewable energy plants, which not only promise environmental benefits but also economic opportunities for the region. The report calls for more policies and incentives, greater regional cooperation, and a sustained focus on deployable technologies to bridge the green investment gap.

The situation in South-East Asia serves as a microcosm of the global struggle against climate change. The region's journey towards decarbonization is still in its infancy, offering a unique opportunity to leverage low-hanging fruits and innovative solutions to reduce emissions. However, this requires a concerted effort from all stakeholders involved – from policymakers to investors, and corporates to communities.

As South-East Asia stands at this environmental crossroads, the path it chooses to follow will have significant implications not just for the region, but for the global community. The call to action is clear: to avert the looming climate crisis, South-East Asia must urgently ramp up its green investment efforts. The time for deliberation is over; the time for decisive action is now.

In the words of Kimberly Tan, "The good news is that South-East Asia is very early on its decarbonisation journey, so it benefits from having many levers to reduce emissions today." This sentiment encapsulates the challenge and the opportunity facing South-East Asia – a region with the potential to transform its environmental narrative and lead by example in the global fight against climate change.

Ad Banner
Advertisement by Open Privilege

Read More

Health & Wellness Asia
Image Credits: Unsplash
Health & WellnessMay 20, 2024 at 9:30:00 PM

Keep forgetting things? Discover what a brain scan revealed about my cognitive health

As we age, it's not uncommon to misplace our glasses or struggle to recall a name. But when these lapses in memory become...

Mortgages Asia
Image Credits: Unsplash
MortgagesMay 20, 2024 at 8:30:00 PM

6 Essential Tips to Secure Mortgage Approval

Purchasing a home is a monumental milestone, often accompanied by the daunting task of securing a mortgage. With the right preparation and strategies,...

Financial Planning Asia
Image Credits: Unsplash
Financial PlanningMay 20, 2024 at 8:30:00 PM

Tips on Long-Term Financial Planning

Setting financial goals is a crucial step toward achieving financial security and independence. Whether you're planning for retirement, saving for a major purchase,...

Business Process Asia
Image Credits: Unsplash
Business ProcessMay 20, 2024 at 8:00:00 PM

Lessons from Entrepreneurs on the Value of a Rejected Business Pitch

In the high-stakes world of entrepreneurship, the pressure to deliver a flawless business pitch can be overwhelming. These brief moments can determine whether...

Must Know Basics Asia
Image Credits: Unsplash
Must Know BasicsMay 20, 2024 at 6:00:00 PM

Financial Responsibility 101: Key Principles for Success

Financial responsibility is a cornerstone of a stable and secure life. It involves making informed decisions about spending, saving, and investing to ensure...

Startup Asia
Image Credits: Unsplash
StartupMay 20, 2024 at 5:30:00 PM

Mastering the Art of Business Pitch

Bringing a business concept to life requires more than just a brilliant idea; it demands securing the necessary funding to turn dreams into...

Health & Wellness Asia
Image Credits: Unsplash
Health & WellnessMay 20, 2024 at 3:30:00 PM

How more sleep leads to smarter and healthier kids

In today's fast-paced world, ensuring that children get enough sleep is more important than ever. Research consistently shows that adequate sleep is essential...

Must Know Basics Asia
Image Credits: Unsplash
Must Know BasicsMay 20, 2024 at 3:30:00 PM

Can we trust online banking?

In the digital age, the convenience of online banking has become increasingly appealing. With the promise of higher interest rates and lower fees,...

Adulting Asia
Image Credits: Unsplash
AdultingMay 20, 2024 at 2:00:00 PM

Exploring the Exciting World of Aircraft Spotting

Aircraft spotting, often referred to as plane spotting, is more than just a hobby; it's a passion that unites a diverse group of...

Technology Asia
Image Credits: Unsplash
TechnologyMay 20, 2024 at 12:00:00 PM

Eliminating Bias in Artificial Intelligence: Is it possible?

Artificial intelligence (AI) has become an integral part of our daily lives, influencing decisions in areas ranging from healthcare to finance. However, as...

Politics Asia
Image Credits: Unsplash
PoliticsMay 20, 2024 at 11:30:00 AM

Senior MFA Official Sentenced for Misusing Diplomatic Bag Service and Providing False Information

A senior diplomat from the Ministry of Foreign Affairs (MFA) in Singapore was sentenced to a week's jail for giving false information to...

Tech Asia
Image Credits: Unsplash
TechMay 20, 2024 at 11:30:00 AM

Google and Apple's Strategies against Theft

Smartphones have become an indispensable part of our lives, storing a wealth of personal and sensitive information. However, this makes them a prime...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege