Jakarta and Bangkok are susceptible to climate change, with both experiencing regular flooding. According to Lloyd’s Bank, Asean countries will suffer a loss of US$22.5 billion in GDP due to floods. (Photo by HILARYO OSCAR / AFP)
Jakarta and Bangkok are susceptible to climate change, with both experiencing regular flooding. According to Lloyd’s Bank, Asean countries will suffer a loss of US$22.5 billion in GDP due to floods. (Photo by HILARYO OSCAR / AFP)

LETTERS: Asean was established in 1967 to advance regional cooperation in economic, security and social aspects. It has a combined population of 650 million and a gross domestic product growth of US$2.5 trillion.

Its population size, comparative advantages and geographical location have led to the bloc being one of the quickest growing markets worldwide.

But it is increasingly threatened by environmental degradation and climate change, which lead to financial losses and affect the people's standard of living.

Jakarta is expected to be the world's biggest city and Manila the fourth biggest by 2030. But cities with such high population densities consume large volumes of energy, which causes high global greenhouse gas emissions.

Jakarta and Bangkok are susceptible to climate change, with both experiencing regular flooding. According to Lloyd's Bank, Asean countries will suffer a loss of US$22.5 billion in GDP due to floods.

At the end of the 21st century, Asean's GDP is expected to drop by 11 per cent due to the effects of flooding. In developing cities, most rural areas lack facilities and basic necessities.

Governments have to build infrastructures for transport, as well as water, electricity and sanitation.

Indonesia is producing environmentally friendly vehicles, while Vietnam and Myanmar are investing in solar power plants.

Collectively, the Smart Green Cities Programme, in collaboration with the European Union, aims to reduce carbon emission and promote sustainable development.

The Asian Development Bank estimates that US$210 billion is needed for infrastructure investment in Asean up to 2030, which will help achieve the United Nations' Sustainable Development Goals.

Non-governmental organisations and governments are unable to provide complete funding for sustainable infrastructure projects.

As for the private sector, banks play a crucial role. However, the World Wide Fund for Nature's Sustainable Banking Assessment found that more than half of banks met less than 25 per cent of the environmental, social and corporate governance criteria.

Only nine per cent of banks carry out climate change risk assessments and measures.

Regrettably, some banks continue to invest in unsustainable and non-eco-friendly business ventures.

Since banks facilitate economic activities with their financing mechanisms, they can restrict undesirable business ventures that are detrimental to the environment.

For a start, banks can restrict funding for non-eco-friendly activities and give more favourable terms to sustainable activities.

Asean banks can embark on sustainable and green financing as there is a US$3 trillion market for green and sustainable infrastructure investment, from 2016 to 2030.

Last year, Asean inaugurated the Asean Centre for Sustainable Development Studies and Dialogue, which promotes regional and international discussions, and cooperation in sustainable activities.

This will propel Southeast Asia to achieve the United Nations' SDGs. However, the Asia and the Pacific SDG Progress Report 2019 highlights that current progress is not sufficient to attain the 17 SDGs before 2030.

There is a need to expedite current and future sustainable development projects. Nevertheless, Asean can capitalise on its experience and leadership in committees like the Asean Coordinating Centre for Humanitarian Assistance on Disaster Management.

The population of Asean is expected to reach 749 million in 2030 with a GDP of US$6.6 trillion.

With a significant increase in population, it is even more imperative for forward-looking and meticulous sustainable development planning to ensure the health of the people and the protection of the environment.

Ong Bo Yang

Singapore


The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times