The climate crisis is one of the most significant issues that we are facing today. It is a threat to humanity and the planet, and impacts all aspects of our lives, including the environment, economy, public health and social well-being.
Everything else that keeps us busy — the ebb and flow of cryptocurrency, the seemingly unending potential of the metaverse, and AI with all its ethical implications — all pales in comparison to the fight we should be mounting against climate change.
The focus now is on averting potential future catastrophes while also handling the current impact that is already being felt by communities around the world.
Asia as a region is lagging behind in the climate change fight. While the reasons behind this lag are nuanced, the primary objective is not: to fight climate change with the best of our region’s ability.
When it comes to climate action, it is important to shoot for the moon, even if we land on the stars.
Growing pains
Asia is both rapidly developing and home to some of the most populous countries, and its energy consumption and industrial activities hold significant global impact.
Five of the ten largest carbon emitters in the world (China, India, Indonesia, Japan, and South Korea) are found in the region, and it accounts for 45 per cent of global greenhouse gas emissions because of its large populations.
Achieving net-zero will be extremely challenging but ultimately rewarding for our planet and future generations to come — and Asia can play a significant role in the global effort for climate change.
Unequal risks across the region
The economic risks will be high. According to McKinsey, countries in the Asia Pacific have about 37 per cent of their GDP in sectors most exposed to the transition to net zero, which is above the world average of about 35 per cent.
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However, Asia is not one monolithic country or economy, and there is a wide variation that depends on the specifics of each country.
In Singapore, GDP exposure lies at 21 per cent, while it is 58 per cent in Vietnam. Similarly, the percentage of jobs in sectors that will be affected spans a wide range, from 22 per cent (Singapore) to 72 per cent (India).
McKinsey estimates that the net-zero transition could be somewhat positive overall, with a global loss of 187 million jobs by 2050 and the creation of 202 million new ones, given the growth of sectors like hydrogen and renewables.
While Asia as a region can and should play a significant role in decarbonisation, it is equally imperative to tackle this charge with nuance and understanding. Global North countries in Asia, such as Singapore, New Zealand, Australia, Japan and South Korea, will face overall lower exposure to the transition—this means less disruption, fewer jobs lost, and less economic disorder — even though both Japan and South Korea are some of the top emitters of greenhouse gases.
Manufacturing-dependent countries such as Bangladesh, Pakistan, and Vietnam are more exposed to shifts in demand for products than, say, Japan, which is predominantly a service economy.
The transition period to achieve net-zero will come at a cost, and the wealth gap between these countries and the rest in Asia might increase. This disruption will also flow from the top to bottom, affecting residents of the region on the individual level.
For instance, the lower-income population would endure the effects of higher electricity prices during the transition, and many will lose jobs in the fossil fuel industries while the creation of new jobs in clean energy sectors is being created.
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It is in this awkward in-between phase that we must practise teamwork and compassion with a willingness to understand that the road to net zero is not made equal for all.
A bright future ahead, but only if we aim high
The road to net-zero will be a difficult one for Asia, but one that will ultimately reap rewards. According to the same McKinsey report, the region is well placed for renewable energy and abatement efforts: Indonesia, the Philippines, and Thailand have great potential for reforestation, Japan has ambitions to become a major offshore wind energy producer, while the Sarawak region in Malaysia is set to become a leader in hydrogen.
Over in Indonesia, the potential for geothermal energy is vast, given its location near the Ring of Fire but it will need global partners to truly harness the full potential it may have.
Markets will expand for low-emissions products and industries, like electric vehicles, human-powered vehicles, and new goods and services to support these changes, such as rare-earth materials, forest management, and better public infrastructure for mass transit.
The industry is already getting a boost with China’s oil giants investing in renewable energy, and Vietnam has embraced renewable sources like solar, wind, hydro and biomass. As a region that is rich in natural, human, and technological capital, Asia is well poised for a net-zero future.
But this abundance will be for nought if we do not aim extremely high. Knowing that most countries globally have consistently fallen behind on climate change goals, it is important to do as much as possible, so that we can compensate for the high chance that we do not meet those goals.
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