ASEAN Needs US$2 Trillion Investments For Switching To Greener Economy: Report

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Approx US$2 trillion in sustainable infrastructure investment is needed between 2021 and 2030 if South-east Asia is to achieve climate and sustainable development goals, according to a report produced by Bain & Co, Microsoft, and Temasek.

The report, Southeast Asia’s Green Economy- Opportunities on the Road to Net Zero, highlighted significant gaps and opportunities in the region’s green journey.

The big gap implies opportunities for the private sector. The report also cited Asian Development Bank forecasts that 40 % of infrastructure investments will need to come from the private sector.

“Green fundraising and capital deployment are picking up in the region, but we have a long way to go,” said Steve Howard, chief sustainability officer at Temasek.

“The road to net-zero will have transition costs, but in return there will be significant opportunities, both economic and social, if the private, public and philanthropic sectors work together to unlock the region’s full potential,” he added.

Of the US$2 trillion investment need in South-east Asia, more than half should target sectors that have historically been attractive to private investors, for example, renewable energy, green buildings and construction, electric vehicle (EV) ecosystems, and the like, says report.

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