Southeast Asia needs $2T over next decade for green economy

By Ovunc Kutlu

ANKARA (AA) - Southeast Asia needs infrastructure investments of $2 trillion over the next decade to enable sustainable energy transition to the Paris Agreement goals and achieve a green economy, according to a report.

The region is gaining relevance on the global stage as a critical part of energy and net zero emissions, said the report, titled Southeast Asia’s Green Economy: Opportunities on the Road to Net Zero, published on Wednesday.

"In 2020, about $9 billion was deployed into green businesses and assets," in Southeast Asia, and 90% of the region's emissions can be addressed through energy transition and agriculture transformation, according to the report prepared by Bain & Company, Microsoft and Temasek.

The report said 40% of infrastructure investments in Asia need to come from the private sector, but only less than 1% of the estimated $2 trillion was deployed to green businesses and infrastructure assets in 2020.

"National governments have begun to mobilize, recognizing the projected 17-37% average GDP loss from climate-related events by 2050 under 2.0-3.2 degrees Celsius global warming scenarios," it added.

The report noted that countries in the region that lead investments in clean energy are estimated to gain around $1 trillion in economic opportunities by 2030.