Last month, during the 10th ASEAN Finance Ministries and Central Bank Governors Meeting in Jakarta, a group of prominent organisations released a joint report titled, “Renewable Energy Manufacturing: Opportunities for Southeast Asia.” 

The organisations behind the report included the Asian Development Bank (ADB), Bloomberg Philanthropies, ClimateWorks Foundation, and Sustainable Energy for All. It points out that Southeast Asia is on the front lines of climate change, stating, “Today, 5 out of 10 economies in Southeast Asia rank among the world’s top 20 countries most vulnerable to climate change.” 

What does this mean for Southeast Asia? 

“Emissions in Southeast Asia must be reduced by approximately 10 to 25% by 2030 (relative to its current trajectory) to limit global warming to a 1.5°C pathway and to mitigate the worst of its effects,” The report reads. “Substantial, collective action by governments and businesses is required. About half of all governments globally and within Southeast Asia have already committed to net zero targets. 

This dilemma presents not only a challenge, but an opportunity. If Southeast Asia can work to meet renewable energy needs, it would bolster the region as a leader in sustainability and decarbonisation. The region is already primed for this shift: having an abundance of raw materials like nickel and cobalt to help in the manufacturing of EV batteries, solar panels, and more. 

“As we often say at ADB, the battle against climate change will be won or lost in Asia and the Pacific. A decisive front in that battle is Southeast Asia.”

ADB Sectors Group Director General and Group Chief Ramesh Subramaniam. 

The report goes on to describe how much investors who recognise the challenges and opportunities ahead can profit off moving quickly into this new market: “According to McKinsey’s estimates, Asia has a $5 trillion addressable market size for green businesses in 2030, with low carbon mobility and clean power contributing 35-40%. In Southeast Asia, the contribution of these two segments is estimated at $90-100 billion, which will need to be enabled by a significant scale up in renewable energy inputs and end-products (e.g., solar PV, electric vehicles, batteries). This could lead to significant economic development opportunities. By 2050, approximately 30 million renewable energy jobs will be created globally, with 6 million in Southeast Asia, according to IRENA estimates.”

In the past, globalised, fast-paced economic growth has come at the expense of the environment. But with the predicted global capital shift supporting renewable energy efforts, savvy and eco-conscious investors have the chance to be early adopters and usher in new business models that support efforts towards a better tomorrow.