Green recovery in ASEAN to generate over 30m jobs, US$172b in capital investment: ADB

A green recovery from the Covid-19 pandemic in Southeast Asia could create US$172 billion in investment opportunities annually and generate more than 30 million jobs by 2030.

The Asian Development Bank (ADB)’s report released on Wednesday (Jul 6) further identified 5 areas that would support a post-Covid-19 recovery through greener development. They include productive and regenerative agriculture, healthy and productive oceans, sustainable urban development and transport models, circular economy models, and renewable and efficient energy.

While some countries have already begun supporting a green recovery, ADB director general for Southeast Asia Ramesh Subramaniam thinks more must be done. This could come in the form of encouraging additional green stimulus, carbon pricing schemes and reducing dependence on fossil-fuel intensive power, he said.

The report further outlined several policies that countries can adopt to push for a greener economic recovery, such as introducing carbon pricing, intensifying research on green technologies and encouraging female entrepreneurs to participate in green business opportunities.  

Southeast Asian governments will also need to identify sustainable sources of financing that will fund climate-friendly infrastructure investments and leverage green growth opportunities, said ADB.

It recommended countries adopt financing approaches such as mobilising domestic resources through environmental and carbon taxes, reducing subsidies for fossil fuels, engaging private investors, and leveraging public and private finance through green funds such as the ASEAN Catalytic Green Finance Facility.

A strong collaboration among neighbouring countries as well as new partnerships with various stakeholders, in the researchers’ opinion, should be forged to ensure benefits accrue throughout the region.

“Without concerted actions to address the environmental crises of climate change and biodiversity loss, the region’s long-term growth prospects could be constrained,” said ADB in its report.

“A green recovery from Covid-19 is crucial to ensure an economically and environmentally resilient future.”

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