ASEAN needs $2t to reach net-zero goal: climate forum

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According to a report published last year, 39 members states of the UN Economic and Social Commission for Asia and the Pacific made carbon neutrality and net-zero pledges. But actually achieving net-zero emissions is not an easy task.

During the ASEAN Climate Forum in Indonesia, Arsjad Rasjid, chair of ASEAN-Business Advisory Council, said that the region needs US$2 trillion in investments between 2021 and 2030 to reach the net-zero target.

If no action is taken, ASEAN countries stand to lose 37.4% of their current gross domestic product (GDP) by 2048, he said. Conversely, a report by the Asia Society Policy Institute noted that hitting net-zero emissions could result in a 6.3% gain in GDP and provide 36.5 million additional jobs.

Still, Rasjid said that ASEAN countries’ “extraordinary potential” in mitigating climate change means that they are “well-positioned to benefit from the growth of the carbon market, which will play an increasingly important role in reaching net-zero emissions.”

Indonesia has been making strides on its end. Rasjid said the archipelago contributed at least 56% of all carbon offsets in ASEAN, while Cambodia came in second with 26%.

However, the region still needs to up its game for this lofty goal. Investments in Southeast Asia toward reducing greenhouse gas emissions dropped in 2022, according to a report by Bain and Company, Temasek, GenZero, and Amazon Web Services.

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