Regional green economy shift valued at $1 trillion every year by 2030
A SHIFT to the green economy by Southeast Asia is projected to be worth about $1 trillion a year by 2030, Bain & Co. said in a report.
The valuation takes into account the emergence of new products and sectors related to sustainable production and consumption as well as savings from the efficient use of resources, Bain said in its Insights report.
The breakdown includes $270 billion in annual “economic opportunities” for energy and resource extraction, $205 billion for food and agriculture; $200 billion for industries and logistics; and $185 billion for urban centers, the firm said.
The report detailed several pathways unlocking the potential of the green economy, including a shift in energy, food systems, industries, logistics, urban planning, and green financing.
“Companies can take bold action to rebalance portfolios by doubling down on low-carbon investments such as renewable energy sources. Gas will also remain key as a complementary transition fuel,” Bain said.
The consultancy said that businesses can also look into the electrification of offshore assets to improve energy efficiency, adopt circular economy practices, and participate in biodiversity conservation efforts.
Food and agriculture-related businesses may look into investing in new technology like alternative proteins, urban agriculture, and sustainable aquaculture, Bain said.
“Businesses can venture into urban agriculture practices such as vertical and indoor farming, while tapping into technologies that can increase yield and nutritional values,” it added.
Industries and logistics companies paving the way for a greener economy should look into reducing their carbon footprint, and digitizing their supply chains for efficiency.
Meanwhile, firms that seek to transform urban centers into green and connected cities can look for opportunities to install energy-efficient fixtures in houses; and using the Internet of Things (IoT) systems to streamline a city’s development.
Bain also highlighted the importance of green financing, describing it as an enabler for growth, sparking the transition to a green economy. It said financial institutions, investors, and service providers can pursue an accelerated shift to sustainable investing, and the development of green financial instruments, among others.
The latest Sustainable Development Goals (SDG) index indicate that none of the Southeast Asian nations were part of the Top 40 countries closest to achieving all 17 SDGs.
The Philippines is in 99th place, with an overall score of 65.50. — Angelica Y. Yang
