Climate change could bring harsh winds and possible windfalls. Taking the lead on climate action presents a US$12.5 trillion ($16.95 trillion) opportunity for Southeast Asia, says Deloitte Economics Institute.
“Southeast Asia must act now to prevent the region losing US$28 trillion in economic potential over the next 50 years due to unmitigated climate change,” warns the report, released on Aug 23.
Titled Southeast Asia’s turning point: How climate action can drive our economic future, the report describes US$12.5 trillion in potential value over the same period if the region works towards limiting rising global temperatures and realising its potential to “export decarbonisation” to the world.
“There is an urgency for countries and governments to act quickly — within the next 10 years — to circumvent irreversible damage from climate change,” says Philip Yuen, CEO of Deloitte Southeast Asia.
See: Climate scientists reach 'unequivocal' consensus on human-made warming in landmark report
“Southeast Asia’s economies have made strong commitments in this direction. However, each are at different stages on their sustainability journey, owing to their unique geographic and economic circumstances,” he adds.
To alter our trajectory, Southeast Asia must seize the opportunity within this small window to lead the charge and take climate action, moving away from the narrative of cost towards one of economic growth and success, says Yuen.
Could this dangling carrot be enough to spur climate action? As it is, average global temperatures could rise by 3 degrees Celsius or more by the end of this century. This will make it harder for people to live and work as sea levels rise, crop yields fall, infrastructure is damaged and other challenges emerge.
According to Deloitte, the economic cost of leaving climate change unchecked in Southeast Asia is equivalent to the economic damage from a significant earthquake occurring every nine months between now and 2070.
For more stories about where the money flows, click here for our Capital section
If governments, businesses and communities act rapidly in the next decade to address climate change, average global temperature rise can be limited to around 1.5 degrees Celsius by 2050.
“It doesn’t take a miracle — some solutions to climate change already exist. World-leading enterprises have made Southeast Asia home, they’re already delivering the technology to address climate change risks for the region and globally,” says Yvonne Zhang, risk advisory climate and sustainability leader, Deloitte Southeast Asia.
Deloitte’s report sets out four key stages for Southeast Asia’s climate transition. These start with nations and businesses making bold decisions to act on climate change now and develop or expand their related strategies.
Those decisions will see economies start to decarbonise between now and 2030.
See also: Temasek helps firms decarbonise
From 2030 to 2040, Southeast Asia and the world will need to complete large and coordinated shifts to reduce carbon emissions by tackling how energy is produced and consumed.
By 2050, the process of decarbonising high-emission industries should be almost complete, the cost of green solutions will have started to fall, and wider net economic gains will have begun to emerge.
After 2050, the economies of Southeast Asia will have been radically transformed and come to produce near-zero emissions while continuing to grow.
Photo: Unsplash
