Region could be greener by 2030, spurred on by accelerating global momentum and investment to address sustainability and climate challenges. Yet Southeast Asia still has a long way to go. With its share of global population, biodiversity and resources, the region can play a far bigger role, offering significant growth potential moving forward. Southeast Asia could transform quickly, ensuring sustainable energy, creating healthy and sustainable food ecosystems, developing efficient industries and supply chains, establishing greener and more connected cities, and spearheading green financing. Accelerating development of the Southeast Asian green economy offers a US$1 trillion economic opportunity annually for businesses by 2030, enabling regional companies and societies to build a competitive advantage for the future.
Globally, countries are prioritizing sustainability investments as concerns about climate change and the resulting transition to a green economy gathers speed and urgency. Stimulus programs injected into economies around the world to address the COVID-19 pandemic and promote ‘build back better’ initiatives are accelerating the push towards greener, more sustainable industries. Yet in this race, Southeast Asia can build a lot more momentum to seize the opportunity. There is a gap between where Southeast Asia is compared to other regions in their green initiatives. This gap presents a threat to Southeast Asia’s global competitiveness but also creates immense opportunities for the region. Where excessive resource extraction and energy consumption followed by waste mismanagement were the norm, the region could benefit from a US$270 billion opportunity as it embarks on decarbonization and electrification, a sustainable energy transition, responsible consumption and embedded circularity. Where agricultural growth has typically been inefficient and wasteful, Southeast Asia has the potential to innovate and increase production in a regenerative and conscious manner that will make nutrition widely accessible. This represents an US$205 billion opportunity for the region.
As industrial activity in Southeast Asia expands due to geopolitical shifts, manufacturing processes can be reimagined and supply chains connected and made transparent with full traceability. The region can help ensure low carbon footprint and capture an US$200 billion opportunity while doing so. As urban populations grow, the way is clear to build affordable green homes in satellite settlements connected by green public transportation, representing an US$185 billion opportunity in Southeast Asia. While sustainable initiatives have struggled for financing and carbon-offset revenues have gone to waste, Southeast Asia can take the lead in green financing be a home for a liquid carbon market where incentives to reduce emissions can be part of the prescription.