Southeast Asia, which includes Vietnam, could lose up to 30% of its GDP by 2050 due to increases in global temperature and extreme weather events, but bolstering its renewable energy manufacturing would help regional nations in several aspects, according to a new report.
This renewable energy development would position the regional countries to create new jobs and meet growing energy demand while drastically reducing emissions, according to the report released Thursday on the sidelines of the ASEAN Finance Ministers and Central Bank Governors Meeting by the Asian Development Bank (ADB), Bloomberg Philanthropies, ClimateWorks Foundation, and Sustainable Energy for All (SEforALL).
Growing Southeast Asia’s solar photovoltaic (PV) cells, battery and electric two-wheeler (E2W) industries presents an estimated $90 billion to $100 billion revenue opportunity by 2030, with a potential six million renewable energy jobs to be created by 2050, says the “Renewable Energy Manufacturing: Opportunities for Southeast Asia” report.
The study explores how to support the development of the clean energy manufacturing sector in the region and help the countries reap its immense economic potential while mitigating the impacts of climate change.
The report identifies potential ambition and outcomes for Southeast Asia to achieve the following. First, growth in solar PV manufacturing capacity in modules from 70 gigawatts to 125GW to 150GW by 2030.
Second, development of a regional battery manufacturing value chain, increasing national and regional demand, and establishment of Southeast Asia as a regional and global export hub, producing 140 GW-hours to 180 GW-hours of battery cells by 2030.
Third, expansion of assembly capacity for E2Ws in the region from 1.4 million to 1.6 million units annually to approximately four million units by 2030. Catching this opportunity, according to the report, depends on government policy measures specific to each country in the region, including stimulating domestic renewable energy demand; ensuring cost competitiveness; improving the ease of doing business, and improving access to export markets.
“As we often say in ADB, the battle against climate change will be won or lost in Asia and the Pacific, and a decisive front in that battle is Southeast Asia,” Ramesh Subramaniam, the ADB’s sectors group director-general and group chief, said in a release.
“This study shows the promise of renewable energy manufacturing – with policy, technical and financing support – in helping the region’s developing countries to transition away from coal-based energy, while lowering carbon emissions, expanding local industrial capabilities, spurring job creation and driving long-term economic growth,” he said.
Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for SEforALL and UN-Energy co-chair, said: “By growing their renewable energy manufacturing capabilities, Southeast Asian countries can increase GDP, create jobs, and decarbonize energy systems, contributing to both economic growth and climate progress.”
SEforALL is an independent international organization that works in partnership with the United Nations (UN) and leaders in government, the private sector, financial institutions, civil society, and philanthropies to drive faster action towards the achievement of Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy for all by 2030 – in line with the Paris Agreement on Climate Change.
Vietnam, which is seeking to reach its carbon neutrality target by 2050, is in a clean energy transition journey and is promoting renewable energy sources like wind and solar power, green hydrogen, and biomass. LNG is also part of this transition.