ESCAP, UK launch new initiative to promote green investment in Southeast Asia

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Foreign, Commonwealth and Development Office of the UK launched the ASEAN Green Investment Catalyst initiative to accelerate sustainable FDI across Southeast Asia at ESCAP's headquarters in Thailand on December 12.

The initiative worth GBP2.1 million ($2.67 million), funded through the ASEAN-UK Green Transition Fund (GTF), will support the ASEAN Secretariat and ASEAN member states in implementing the recently adopted ASEAN Regional Investment Promotion Action Plan.

It represents a landmark collaboration focusing specifically on attracting FDI into strategic green sectors crucial for ASEAN's transition to a low-carbon economy.

According to Armida Salsiah Alisjahbana, UN Under-Secretary-General and Executive Secretary of ESCAP, this strategic partnership between the UK, ESCAP, the ASEAN Secretariat and ASEAN member nations comes at a critical time when mobilizing private investment for climate action is more urgent than ever.

She stressed that by supporting the implementation of the action plan, this initiative will help position ASEAN as a unified destination for sustainable investment, speeding up the region's green transition, while promoting inclusive economic growth.

For her part, UK Ambassador to ASEAN Sarah Tiffin said the UK is delighted to support this innovative initiative that will help unlock green investment across Southeast Asia.

She affirmed that this initiative exemplifies the transformative power of UK-ASEAN cooperation in accelerating the region's journey toward net-zero emissions while creating sustainable economic opportunities.

The ASEAN-UK GTF, with up to GBP40 million from 2024-2029, is the UK’s flagship program to accelerate ASEAN’s transition to a clean and climate resilient economy by reducing emissions in key sectors, supporting green economic growth, and improving livelihoods of vulnerable people.

The fund will provide technical assistance activities throughout the region, targeting all ten ASEAN member states, and Timor-Leste.