- July 29, 2020 5:49 AM
- July 10, 2021 2:32 PM
- August 1, 2023 6:29 PM
BALI – Climate change is the most urgent issue facing Southeast Asia and achieving net zero requires the involvement of all actors, Asian Development Bank (ADB) president Masatsugu Asakawa says.
He told the ADB Southeast Asia Development Symposium (SEADS) 2023 on Mar. 30 on the Indonesian island of Bali it was critical to work together into build innovative solutions to accelerate the region’s transition to net zero.
SEADS 2023 is being held under the theme “Imagining A Net-Zero ASEAN”. Nine out of 10 ASEAN member states committed to reducing emissions at the COP26 climate summit in Glasgow.
“We need to tackle climate change with practical solutions to decarbonize the region, while ensuring strong, sustainable, and inclusive economic growth,” he said.
Asakawa said ADB had stepped up as the Climate Bank for Asia and the Pacific with the ambition to provide $100 billion in cumulative climate finance from 2019 to 2030, while launching game-changing platforms to scale up climate financing.
As countries are recovering from the COVID-19 pandemic, he said economic revitalization must be done in a greener and more sustainable way.
ADB is set to release a study that sets out concrete measures that governments and businesses can adopt to advance the decarbonization of global value chains.
Asakawa said investments in renewable energy and improved efficiency, incentives to reduce trading costs for climate-smart goods, and the acceleration of digitalization can all contribute to greener and more sustainable value chains.
Indonesian Minister of Finance Sri Mulyani Indrawati told the symposium ASEAN states were still heavily dependent on fossil fuel for their economies and industrial development. She said this issue was even more important for Indonesia which is one of the biggest coal exporters.
According to the minister, it was crucial for ASEAN to tackle such an issue while offering affordable energy. Fossil fuel accounted for 75 percent of the energy share in ASEAN while renewable energy was 14 percent in 2019.
Indonesian Minister of Finance Sri Mulyani Indrawati told the symposium ASEAN states were still heavily dependent on fossil fuel for their economies and industrial development. Photo: Ky Chamna
ASEAN planned to increase its renewable energy contribution to 23 percent by 2025. To achieve this, the region has committed to spending $27 billion to invest in renewable every year.
However, she said ASEAN only attracted $8 billion of renewable energy investment per year in the period 2016-2021.
“It is critical for ASEAN to address on the one hand the need to have energy security but also at the same time energy affordability and sustainability,” said Mulyani.