Increasingly,
the region can afford one. The world needs it.
The
world is changing fast as Asia continues to surge ahead. In fewer than two
generations, the Republic of Korea has gone from being one of the poorest
countries in the world to one of the richest and a global leader in technology
and manufacturing. The People’s Republic of China is set to become the largest
economy in the world this year. In Viet Nam, 15-year-olds are performing above
OECD average in education.
Under the new leadership of India’s Prime Minister Narendra Modi, India will
aim for the skies.
Half of
the world’s population lives in Asia and the Asian
Development Bank (ADB) has estimated that the region will account for
50 percent of the world’s economic activity by 2050. That would lead to a
radical change in economic power. But in historical terms, this is really a
return to the normal state of global affairs. For most of world history, up to
around 1800, Asia was at the center and Europe on the periphery.
The
world will be more just and better off as a result of the rise of Asia. But
this tremendous Asian growth will also put immense stress on the environment.
Air and water are being polluted and many habitats of plants and animals are
being destroyed as a result of rapid growth. Our energy system is causing
destructive climate change while as many as 1.3 billion people in the world
have no access to electric power and 40 percent use firewood and charcoal for
cooking and heating. Eradicating poverty on the current growth pattern would
require several planets. Sustainable growth will require an entirely new, green
growth model.
Asia’s
efforts for green growth
Asia is
stepping up to these enormous challenges and signaling the political will to go
green. China has publicly stated its determination to build an ecological
civilization where economic growth and environmental protection go hand in
hand. The PRC is a global leader in renewable energy investment and about half
of its new
electricity comes from wind, solar, and other green sources. The
ministry of environmental protection has been provided with stronger powers to
curb air pollution.
I was
present when Indonesian President Susilo Bambang Yudhoyono told his government
and the entire Jakarta business community that he had promised his grandchild
that he would be the Indonesian president that would put a stop to
deforestation. Indonesia is making great progress in halting deforestation
while Vietnam and the Philippines have stopped deforestation completely. It was
a great sign of progress when Wilmar, Asia’s largest producer of palm oil, in
2013 committed to a no
deforestation policy.
The
most recent good news was ADB’s announcement of the launch of the Sustainable
Energy for All hub to mobilize investments and bring clean energy to
the Asia and Pacific region. Asia surely has the political will, technological
skills, and manufacturing capabilities to provide clean energy to the region.
But sustainable energy for all is a global challenge, and the OECD can help
mobilize resources and advice on effective policies.
The
International Energy Agency estimates that the Asia and Pacific region will
need more than US$200 billion in investment to provide full access to energy.
Most of the money will have to come from private investments. More than
three-quarters of global foreign direct investments originates in OECD countries.
Development
assistance can mobilize more private investments by mitigating risk. The OECD
Development Assistance Committee, which I lead, is mobilizing more and better
financing for development.
OECD
countries and developing countries will need to go green if the development
gains made to date are not to be halted or reversed by climate change and the
destruction of ecosystems. Learning from success and doing more of what works
is the best policy.
The
forthcoming OECD report Toward
Green Growth in Southeast Asia will provide tailored advice and
recommendations on green growth and development based on what has worked in the
region. For example, in Cambodia,
the National Green Growth Roadmap sets an ambitious series of goals and laws to
encourage inclusive green growth. Cambodian authorities are exploring how to
use hydroelectric power to increase their electricity supply and reduce the
high cost of electricity, as electricity in Cambodia is among the most
expensive in the world.
The
doomsayers say the Asian miracle will end and that growth cannot last forever.
Every year since 1978 when China started surging ahead, professors and experts
have predicted the end of the Asian miracle. Others say that climate change is
inevitable and that any effort to reduce carbon emissions will be too costly.
However,
there is good reason to believe that the naysayers are wrong and that the Asian
century can be good for people as well as the environment. Has the time come
for optimism and action?
Erik
Solheim
Erik
Solheim leads the OECD Development Assistance Committee and is also the United
Nations Environment Program’s special envoy for environment, conflict and
disaster. This was written for the Tokyo-based ADB Institute.
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