Southeast Asia could reap $100 billion from renewable energy by 2030

Southeast Asia could lose up to 30% of its gross domestic product (GDP) by 2050 due to rising global temperatures and extreme weather events. However, boosting renewable energy capacity would help countries in the region create new jobs and meet growing energy demand while significantly reducing emissions.

This is the content of a new report released on August 24 on the sidelines of the ASEAN Finance Ministers and Central Bank Governors Meeting organized by the Asian Development Bank (ADB).

Titled “Renewable Energy Generation: Opportunities for Southeast Asia,” the ADB report outlines how to support the development of clean energy generation in Southeast Asia and help countries tap into their vast economic potential while mitigating the impacts of climate change.

According to Mr. Ramesh Subramaniam, Director General of ADB's Sector Group, the success or failure of the fight against climate change depends on the Asia-Pacific region, in which Southeast Asia is the decisive front.

World - Southeast Asia could earn $100 billion from renewable energy by 2030 — An engineer assembles a VinFast electric motorbike. Electric two-wheelers are one of the potential industries, contributing to reducing emissions and bringing in large revenues for Southeast Asia. Photo: Bloomberg

Agreeing, Helen Mountford, President and CEO of ClimateWorks Foundation, said: “Southeast Asia, home to a quarter of the world’s population, is well-positioned to become a global leader in renewable energy production with a vibrant business environment and a rich talent pool.

“Southeast Asia can increase the supply of reliable and affordable renewable energy solutions to its people and communities regionally and internationally, while creating new local job opportunities,” Ms Mountford added.

“By increasing renewable energy capacity, Southeast Asian countries can increase GDP, create jobs and decarbonize their energy systems, contributing to both economic growth and climate progress,” said Damilola Ogunbiyi, Executive Director and Special Representative of the United Nations Secretary-General for Sustainable Energy for All (SEforALL).

According to ADB, the growing solar photovoltaic (PV), battery, and electric two-wheeler industries in Southeast Asia represent an estimated revenue opportunity of $90-100 billion by 2030. In addition, renewable energy-related industries are also expected to create about 6 million jobs by 2050.

However, seizing this opportunity depends on specific government policy measures for each country in the region, such as stimulating domestic renewable energy demand, ensuring cost competitiveness, improving the ease of doing business, and improving access to export markets .

Nguyen Tuyet

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