Asean green transformation expected to lure $6.7 trillion in investments: Secretariat
The Association of Southeast Asian Nations (Asean) is setting course for a carbon-neutral future which could attract a substantial $3.7-6.7 trillion in green investment and unlock between 49 and 66 million additional jobs for the region, according to the block Secretariat.
Asean economic ministers endorsed a “visionary strategy” on August 19 for carbon neutrality designed to complement Asean member states’ national initiatives in meeting their respective nationally determined contributions under the United Nations Paris Climate Agreement 2015.
This strategy, commissioned by the Asean member states and with the support from the Australia for Asean Futures initiative, frames the need for Asean to pursue carbon neutrality with utmost urgency, and in doing so unlock the huge value potential of a green transformation of the region, the Asean Secretariat said.
Asean is highly vulnerable to climate change, with five of the world’s 20 most at-risk countries located in the region. Unchecked climate change could drive down regional GDP by 11% by 2100, and lead to the displacement of 87 million people in high-risk flood areas in Indonesia, Malaysia, Myanmar, Thailand, and Vietnam.
Addressing the region’s carbon burden will not only help mitigate these critical risks but also offer a path to unlock significant socioeconomic opportunities, the Secretariat added.
Citing analysis conducted by Boston Consulting Group, the Secretariat said efforts towards a carbon-neutral future could unleash between $3.0 trillion and $5.3 trillion GDP value-add by 2050.
The economic benefits of carbon neutrality would accrue to all Asean member states. Vietnam, Cambodia, Laos, and Myanmar are projected to enjoy the greatest uplift, ranging from 9% to 12% of GDP by the end of the century.
Middle-income countries such as Indonesia, Malaysia, the Philippines, and Thailand would see an increase of 4% to 7%. High-income countries Singapore and Brunei would enjoy a more modest uplift of 1% to 2%.
Asean needs to bridge a 2.6-gigaton carbon dioxide gap to achieve its carbon-neutrality goals but several conditions in the region are encouraging, the Asean Secretariat wrote.
Asean has one of the lowest CO2 emissions per capita globally, at just 3.9 tons of CO2 (tCO2) per capita, below the global average of 4.8, almost half of China’s (7.1) and less than a quarter that of the U.S. (14).
“Asean’s growing profile as an attractive financial location is creating an appealing investment environment, with total investment into Asean projected to grow at a compound annual growth rate of 12% between 2023 and 2030. This will double total capital from $962 billion in 2023 to more than$2.1 trillion by 2030,” it pointed out.
In addition, hydropower-rich member states can contribute significant volumes of zero-carbon energy, some have strong raw material bases for the production of green-technology nickel batteries, while others have robust foundations in the automotive industry that could power up electric vehicle (EV) manufacturing opportunities.
Eight-pronged strategy
The Asean strategy for carbon neutrality aims to leverage these synergies, with a commitment to develop green industries, enhance Asean interoperability, embed globally credible standards, and unlock green capabilities.
“The strategy will reduce emissions across energy, industrial processes, and agriculture sectors, among others,” the Secretariat noted.
The eight targeted strategies have been identified by the Asean member states are to accelerate green value chain integration, promote regional circular economy supply chains, connect green infrastructure and markets, enhance interoperable carbon markets, foster credible and common standards, attract and deploy green capital, promote green talent development and mobility, and share green best practices.
The strategy now moves to adoption by the Asean Economic Community Council (AECC) and is to be acknowledged by Asean leaders at the 23rd Asean Summit in September 2023 in Indonesia.
It will then be introduced to the relevant Asean stakeholders from September 2023 onwards, as the region continues to work together in unlocking the value of a carbon-neutral future.
“Asean has reached an inflection point, where decarbonization is paramount for the region’s continued economic growth,” Asean Secretary General Kao Kim Hourn said in the August 19 statement.
“The Asean strategy for carbon neutrality will provide the springboard to propel forward our green transition while unlocking huge economic potential for Asean’s citizens,” he added.
- Read More
Vietnam Politburo okays international, regional financial centers in HCMC, Danang
Vietnam’s highest decision-making body, the Politburo, has greenlighted the establishment of an international financial center in Ho Chi Minh City and a regional financial center in the central city of Danang.
Economy - Thu, November 21, 2024 | 1:50 pm GMT+7
Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE
Singaporean fund Platinum Victory Pte. Ltd. has registered to buy more shares of Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE) to achieve the vetoing power in the latter.
Finance - Thu, November 21, 2024 | 11:29 am GMT+7
Posco keen on investing in Vietnam's $2.2 bln LNG power project
South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.
Energy - Thu, November 21, 2024 | 10:42 am GMT+7
Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta
The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.
Industries - Thu, November 21, 2024 | 10:31 am GMT+7
Vietnam startup expert closes Monkey in Black coffee shop
Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.
Companies - Thu, November 21, 2024 | 8:16 am GMT+7
Vietnam-Singapore ties set for elevation to comprehensive strategic partnership
Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.
Politics - Wed, November 20, 2024 | 8:16 pm GMT+7
Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders
Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.
Companies - Wed, November 20, 2024 | 6:17 pm GMT+7
E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam
E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.
Finance - Wed, November 20, 2024 | 5:37 pm GMT+7
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec
In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.
Companies - Wed, November 20, 2024 | 3:52 pm GMT+7
Central Vietnam province okays $88 mln automobile part project
Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.
Industries - Wed, November 20, 2024 | 3:44 pm GMT+7
Thai packaging firm Thantawan Industry makes inroad into Vietnam
Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.
Industries - Wed, November 20, 2024 | 3:34 pm GMT+7
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC
Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.
Companies - Wed, November 20, 2024 | 2:29 pm GMT+7
Pegatron to quadruple workforce at $800 mln project in Vietnam
Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.
Industries - Wed, November 20, 2024 | 2:03 pm GMT+7
Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park
WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.
Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7
Indonesia, Brazil sign cooperation deals worth $2.65 bln
Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.
Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7
Nusantara not yet feasible as Indonesia’s capital city: authorities
Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.
Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7