In this joint webinar by the Asian Development Bank (ADB) and ISEAS – Yusof Ishak Institute, a set of distinguished speakers and panellists discuss prospects for regional green recovery efforts, including recommendations from the ADB’s recent report “Implementing a Green Recovery in Southeast Asia”, which examines the significant potential benefits of a green recovery as well as the key policy actions needed to drive it.
CLIMATE CHANGE IN SOUTHEAST ASIA PROGRAMME JOINT WEBINAR
Wednesday, 6 July 2022 – The webinar began with opening remarks from Mr Ramesh Subramaniam, Director-General of the Southeast Asia Department, ADB and Mr Choi Shing Kwok, Director and CEO, ISEAS – Yusof Ishak Institute; followed by keynote presentations from Ms Sharon Seah, Senior Fellow and Coordinator, ISEAS, and Ms Dulce Zara, Senior Regional Cooperation Officer, Southeast Asia Department, ADB. This was followed by a moderated panel of four experts speaking on green recovery opportunities and challenges. The panel featured Dr Jayant Menon, Senior Fellow at ISEAS; Ms Bonaria Siahaan, CEO of Yayasan CARE Peduli; Mr Ferry Akbar Pasaribu, Deputy Assistant for Investment Strategy, Coordinating Ministry for Maritime and Investment Affairs of Indonesia and Mr Paroche Hutachareon, Senior Expert in Bond Market Development at the Public Debt Management Office of Thailand. The session was moderated by Ms Naeeda Crishna Morgado, Infrastructure Specialist, Southeast Asia Department of ADB.
Director-General Subramaniam shared ADB’s ongoing climate-related initiatives in the region. These include the ASEAN Catalytic Green Finance Facility (ACGF), the Green Recovery Platform, and the Climate Innovation and Development Fund (CIDF). In the span of two years, the world experienced a series of crises, such as the pandemic, the global supply chain crisis and the energy crisis, that pulled most nations into economic decline. This was on top of continued financial losses caused by the worsening of climate impacts in Southeast Asia. Socio-economic recovery has been imperative.
The opening remarks of Mr Choi also provided key insights into many of Southeast Asia’s efforts during the COVID-19 pandemic which showed promising direction towards a greener economy, whereas other efforts may have shifted it backwards. The green transition, nevertheless, is present and underway. Mr Choi remains positive that “more pieces are falling into place” – investors are realising the potential in a green transition and ASEAN’s dialogue partners are beginning to provide the assistance needed. Government investment and policy play a crucial role in seeing it through.
Ms Sharon Seah’s keynote presentation discussed the imperative for pursuing a green recovery in the ASEAN region and how countries can ensure a just, equitable and inclusive recovery. Ms Seah highlighted ASEAN citizens’ strong willingness to transition to a greener society as evidenced in the results of two regional surveys conducted by ISEAS – Yusof Ishak. She also pointed to evidence of strong private sector interest in pursuing green projects. However, she cautioned of the challenges that face the region in pursuing a green recovery and proposed that 3 “Key Performance Indicators” of social inclusivity, gender empowerment and sustainable rural development be adopted.
In the following keynote presentation, Ms Dulce Zara proposed that a green recovery can encourage stronger, more sustainable growth compared to older pathways of development. ADB’s report introduces five Green Growth Opportunities: Productive and Regenerative Agriculture, Sustainable Urban Development and Transport Models, Clean Energy Transitions, Circular Economy Models and Health and Productive Oceans; which require roughly US$172 billion worth of capital expenditure yet could also create as many as 30 million jobs in Southeast Asia by 2030, reduce the annual GDP loss of climate disaster, avoid further pandemics, and strengthen Southeast Asia’s long-term economic competitiveness. Amidst the continued effects of the pandemic, ADB’s report highlights three steps for governments to transition to a green recovery: 1.) “Build mechanisms that can produce a lasting shift toward ecosystem resilience”, 2.) “Implement targeted policy interventions focused on the five green growth opportunities”, and 3.) “Identify sustainable sources of financing for green growth opportunities”.
To quote Dr Jayant Menon, “This may not be the right time, but we have no more time.” During the panel discussion, Dr Menon expressed his optimism about a green recovery, mentioning that trade reforms in the past have faced similar challenges, but succeeded over time. He also emphasised the importance of Sustainable Development Goal indicators as guidelines for the region’s green recovery.
Most, if not all ASEAN countries have begun their green recovery. Mr Paroche Hutachareon provided an example where the Government of Thailand, during the height of the pandemic, had issued a THB30 billion sustainability bond focusing on low-carbon transport as well as measures to support public health and infrastructure. Mr Hutachareon also acknowledged the growing importance of sustainable tourism for Thailand post-COVID 19 setbacks in the industry. Challenges do remain as Mr Ferry Akbar Pasaribu, concurring with Ms Seah’s warnings on the still-rising demand for fossil fuels, described Indonesia’s own struggle to phase out fossil fuels, being one of the largest coal producers in the world. Green recovery also requires much assistance to those below the poverty line. Nevertheless, Indonesia shows strong interest in green development; Mr Pasaribu recognised that more Indonesian banks are investing in sustainable sectors, and government action has driven an increase in electric-powered public transport.
Southeast Asia still has a long way to go – Ms Bonaria Siahaan brought up a strong point on existing gaps in green recovery efforts, emphasising the need for targeted policies on women’s inclusion. Gender inequality was further exacerbated during the global pandemic – Ms Siahaan promoted the importance of women’s empowerment not by “residual effect”, but by strong, integral action. Women continue to fall behind in access to STEM fields, and as such, risk receiving fewer of the quality job opportunities that green growth promises as compared to men.
During the Q&A session, the panellists addressed questions relating to economic indicators of green recovery efforts, gender equity in the green transition and the role of governments in mobilising green investments. The webinar drew an audience of over 340 participants.
The recording of the webinar and keynote presentation slides can be viewed here.
Download the Opening Remarks by Mr Choi Shing Kwok here.