The View | Climate change fight could be a boon for Southeast Asia if it gets the right support

Southeast Asia is one of the most vulnerable regions to climate change, but it also arguably occupies a unique position in the global fight against it

While the financial sector will play a critical role in supporting countries on their journey towards greater sustainability, companies in the region also need access to know-how and technology

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Farmers harvest Arabica coffee cherries at a plantation in Temanggung regency, Central Java, Indonesia, on May 25. Agriculture is an important part of the economy in many parts of Southeast Asia, but ensuring the sector remains viable means farmers need access to consistent financing and other tools. Photo: Bloomberg

Published: 4:30pm, 31 May 2023

This month, the World Meteorological Organization (WMO) announced that for the first time in human history, we are more likely than not to breach 1.5 degrees Celsius in global warming within the next five years.

As weather patterns combine with the effects of human-induced climate change, global temperatures will enter “uncharted territory”, WMO secretary general Petteri Taalas said. Such effects will be especially pronounced in Southeast Asia, where the ever-growing threat of climate change is more intense than ever.

The region is one of the most vulnerable to climate change, but it also arguably occupies a unique position in the global fight against it – one that is primed to effect actual tangible progress, if it paves the right way ahead. For one, it has the potential to provide up to US$1 trillion in annual economic opportunities from the green economy by 2030.

The region has made significant progress in recent years. Since 2020, the Asia-Pacific region has recorded US$15 billion in cumulative investments, with most of it going towards renewables and the built environment. Eight out of the 10 Southeast Asian countries have committed to net-zero targets.

Simultaneously, gaps remain in the region’s emission reduction plans and pathways to decarbonisation are unclear. In Southeast Asia, most of the total energy supply continues to be derived from non-renewable sources, and its energy demand is forecast to rise by nearly 80 per cent by 2050 from 2020 levels according to the International Energy Agency.

There is an urgent need for green financing to close a major carbon emission gap of up to 3.2 gigatonnes by 2030. It’s clear that the financial sector plays a critical role in supporting countries on their journey towards greater resilience and sustainability.