A green recovery from the coronavirus disease 2019 (COVID-19) pandemic in Southeast Asia could potentially create $172 billion in investment opportunities yearly and produce more than 30 million jobs by 2030, the Asian Development Bank (ADB) said yesterday.
The ADB report, Implementing a Green Recovery in Southeast Asia, considers how green growth can help countries implement an economic recovery from the impacts of the COVID-19.
It 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 transport models, circular economy models and renewable and efficient energy.
The five focus countries of the report include the Philippines. It cited the Global Risk Index 2020 which showed that among the top five countries most impacted by climate change globally is the Philippines.
“This report highlights key policy priorities for Southeast Asian economies that can help ensure that both socioeconomic and environmental aspirations are served in their pursuit of economic recovery,” said Ramesh Subramaniam, ADB director general for Southeast Asia.
“While several countries in the region have begun to support a green recovery, more needs to be done. We must encourage additional green stimulus, design carbon pricing schemes, reduce dependence on fossil-fuel intensive power, and attract private sector investors to large-scale renewable energy, sustainable transport, and clean urban projects,” he added.
Meanwhile, the ADB said in a separate statement it has signed a memorandum of understanding with the government of the United Kingdom to develop a £107 million trust fund to support efforts by Asean countries to scale up green financing and shift to low-emission, climate-resilient development.
The UK-Asean Catalytic Green Finance Facility (ACGF) Trust Fund will leverage UK and ADB funds to accelerate a pipeline of low-carbon and climate-resilient infrastructure projects and catalyze financing from public and private capital sources. The fund will be part of the Asean Green Recovery Platform launched at COP26.
“We are facing a climate crisis and Southeast Asia needs rapid and innovative solutions to help countries raise financing to deliver their climate targets and ambitions,” said ADB President Masatsugu Asakawa.
“This new fund will build on a longstanding UK-ADB partnership through an innovative revolving fund structure that will mobilize public and private funds and build a robust pipeline of climate projects in the region,” he added.
The ADB said Asean countries are grappling with increasing costs of climate change, which add to the existing investment needs of $210 billion per year for infrastructure in the region and exacerbate the heightened vulnerability of people and the economy after the COVID-19 pandemic.
