According to a recently released report from Microsoft, Bain & Company, and Singapore’s Temasek Holdings, the Southeast Asia region would need an investment of US$2 trillion over the next decade to reduce greenhouse gas emissions.
Even though much has been said about the clean energy transition, the report reveals that green investment in the region totaled a mere US$9 billion in 2020. In order for Southeast Asia to reach its Net-Zero ambitions, the public, corporate, and philanthropic sectors must work together to attain the US$2 trillion investment figure.
The report highlighted that 90% of Southeast Asia’s carbon emissions can be addressed by transitioning away from fossil fuels towards renewable sources like solar and wind.
Even though the trend for Southeast Asia Green Economy is positive, there is still much work to be done. Achieving Net-Zero as a region demands individual action by businesses, investors, governments, and communities, as well as collective action at an ecosystem level. The collective action would require three ingredients to make it successful.
First, is ecosystem wide co-innovation. This means, countries in the Southeast Asia region would need to accelerate commercialization of low carbon technology with measures such as agriculture-technology and carbon capture. In addition, the region would also need to increase expertise by sharing tools, data, and standards through value-chain alliances.
Second, companies should leverage public-private partnerships to have an easy access to capital and build capabilities of SMEs together with upskilling and retraining the Southeast Asia’s workforce. Businesses must identify the strategic white space where they can advance the region’s climate transition while driving commercial value and innovation that is aligned to their core business strategy.
Finally, in order to reach the Net-Zero goals, regional collaboration among all players is essential. The region should develop a holistic Southeast Asia Net Zero transition plan by establishing a cross border carbon trading system and exploring a central regional grid to connect demand and supply efficiently.
To read the full report, you can click here!