KUALA LUMPUR – Asian Development Bank (ADB) expects a potential of US$172 billion of investment opportunities annually by 2030 from a green recovery following the COVID-19 pandemic in Southeast Asia.
In a recently published report, the ADB said the green recovery could potentially create 30 million job opportunities in the region as well by 2030.
The report from the bank highlighted five different areas that would bolster a post-pandemic recovery through sustainable development. These areas are productive and regenerative agriculture, healthy and productive oceans, sustainable urban development and transport models, circular economy models, and renewable and efficient energy.
ADB’s director general for Southeast Asia Ramesh Subramaniam stated in a statement recently that the report showcases key policy priorities for economies in the Southeast Asian region that would ensure that the socioeconomic and environmental aspirations are served in the pursuit of economic recovery.
Although several countries in the Southeast Asian region already started to support a green recovery, additional action is still required, he said.
“We must encourage more green stimulus, design carbon pricing schemes, reduce intensive fossil-fuel power dependence, and also attract investors from the private sector to large-scale renewable energy, sustainable transportation, and clean urban projects,” he added.
According to the ADB, a green recovery post-pandemic is key to ensuring an economically and environmentally resilient future. The bank noted that if concerted actions are not taken to address environmental crises such as climate change and biodiversity loss, the region’s long-term growth prospects may end up being constrained.
The report also identified other policy options such as intensifying research on green technologies, encouraging female entrepreneurs to join green business opportunities, as well as a better management of biodiversity through open and integrated data systems.
In order to implement a green recovery, ADB said the governments in Southeast Asia must also find sustainable sources of financing which would enable a climate-friendly infrastructure investments and harness prospects for green growth.
Furthermore, the report also suggests financing to include approaches like the mobilisation of domestic resources through the implementation of environmental and carbon taxes, subsidy reduction for fossil fuels, the mobilisation of private investors through addressing risks associated to green investments, and the leverage of public and private finance through green funds, for example the ASEAN Catalytic Green Finance Facility.
In addition to this, ADB urged for a strong collaboration between neighbouring economies and the formation of new partnerships with various stakeholders that would ensure benefits to accrue throughout Southeast Asia.
The bank also stated that it is dedicated to continuing its fight to eradicate extreme poverty while working towards the goal of establishing a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
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