Singapore-Renewable energy, sustainable agriculture and electric vehicles (EVs) have been reported to be one of five key areas that can dramatically reduce carbon emissions in Southeast Asia.

Investment opportunities in these areas could account for 60 percent of the carbon emission reductions the region needs to reach net zero by the middle of the century.

Another area is forest conservation, which has a sustainable construction environment, such as by investing in energy-saving cooling technologies.

A report by consultancy Bain & Company, investment company Temasek, and technology giant Microsoft was presented at the Ecosperity Conference on Tuesday (June 7th).

For example, forest conservation, especially in Indonesia and Malaysia, is the region’s largest carbon reduction tool and will provide an investment opportunity of US $ 20 billion (S $ 27.6 billion) by 2030.

Forests in the region can absorb large amounts of carbon emissions, and projects such as mangrove planting and rainforest conservation are increasingly being seen as an important way to combat climate change, with carbon credits. It brings economic benefits to investors through the sale of.

Sustainable agriculture, such as surveillance systems, irrigation technology, precision agriculture with the use of drones and the use of farmers’ service platforms, represents great potential opportunities to drive improved yields and reduce emissions.

Countries such as Malaysia, Thailand and Vietnam are most attractive due to infrastructure preparation and strong regulatory support.

The report said sustainable agriculture helps reduce emissions by up to 40 percent compared to today’s emissions, while smallholders account for about 10 percent of Southeast Asia’s total carbon emissions.

Renewable energies such as solar and wind energy, on the other hand, will account for US $ 30 billion by 2030, of which solar energy will account for US $ 20 billion.

The report states that corporate investment in renewable energy solutions is accelerating in the region, accounting for at least US $ 6.6 billion in corporate green investment since 2020.

Since 2020, Southeast Asia has made a total of US $ 15 billion in private investment, with approximately 45% invested in the last three quarters.

By 2030, the region will have approximately US $ 1 trillion in green economic opportunities annually.

The three “significant disruptions” that impede Southeast Asian investment and the expansion of climate change measures are the lack of incentives to rapidly expand decarbonization solutions, inadequate focus on proven low-risk solutions, and energy shifts. Includes a lack of clarity of system cost for.

To close the gap and promote green investment, the report identifies some important actions that must be taken.

This will be done by adopting more comprehensive decarbonization programs and incentives to expand market access, strengthen green finance, combat system costs for renewable energy transitions and promote creative regional cooperation. Includes opening up opportunities for proven solutions.

For example, Malaysian EVs will be exempt from road tax until December 2025 to promote their spread. Owners will also benefit from an EV taxable income tax deduction of up to RM2,500 (S $ 780).

The report states that green hydrogen and carbon recovery and utilization technologies have high carbon removal potential, but it will take time to reach maturity and commercial readiness of the technology.

Similarly, the protection of flark, one of human allies in the fight against climate change, which serves as a natural carbon sink, has great carbon reduction potential, which is Malaysia and Indonesia. Limited to. The peatlands of the world.

Dale Hardcastle, Partner and Director of Bain & Company’s Global Sustainability Innovation Center, said Southeast Asia “needs to move from promise to action, bridging the gap between opportunity and outcome. It will be a stone. “

“We are still bullish on the US $ 1 trillion economic opportunity in Southeast Asia, but we need to step up as a region to strengthen investable markets and increase the flow of green capital.”

Source link

Previous articleNatural gas plays a vital role in sustainable development
Next articleNew Australian Prime Minister, President of Indonesia rides a bicycle when diplomatic wheels turn