Promoting the green economy in the Asia-Pacific region

The need for more and faster action to combat the climate crisis is long overdue. The IPCC Sixth Assessment Report estimates that limiting warming to 1.5°C above pre-industrial levels will require a 43 percent reduction in global greenhouse gas emissions by 2030 from 2019 levels. Still the latest UNFCCC Synthesis Report estimates that greenhouse gas emissions will fall just 0.3 percent below 2019 levels by 2030 – highlighting a large target shortfall that needs to be urgently addressed.

Here the private sector should and can also take the lead and work closely with governments and communities to achieve the green transformation of the region. As an annual regional conference of the United Nations Economic and Social Commission for Asia and the Pacific, Sustainable Development Network (ESBN), the Asia-Pacific Business Forum (`BF).) is an excellent opportunity to mobilize the region’s private sector for greater contributions to the region’s green transformation.

The upcoming `BF 2023 is themed “An Asia-Pacific Green Deal for Business: Driving the Green Transformation” This November will provide the platform to raise public awareness of the challenges of climate change, its impact on all 17 Sustainable Development Goals and innovative solutions. Essentially, the biggest challenges and opportunities for the private sector to take action lie in the five pillars of the Asia-Pacific Green Deal for Business:

1. Promoting a carbon-free, affordable and resilient energy system.
2. Building smart, low-carbon, water-secure and climate-resilient cities, infrastructure and mobility.
3. Mobilizing public and private finance for the green transformation.
4. Accelerating and expanding innovation for sustainable development.
5. Shift towards a more circular economy.

Specifically, the forum will focus on three key areas; How green finance is supported by tools like a “Green Deal” digital platform.Green logistics and infrastructure as well as green innovation and technology entrepreneurship can be used to support the Asia-Pacific Green Deal for business.

Green finance and the digital platform “Green Deal”.

Finance is at the heart of the green transformation. It’s already well documented Difficulties faced by micro, small and medium enterprises (MSMEs) in accessing finance, and governments and related authorities have introduced various policies and mechanisms to facilitate the flow of finance to them. As companies respond to increasing demands to monitor, report and reduce their carbon footprint, it is even more important that companies, especially MSMEs, understand and utilize the available digital platforms for ESG and sustainability reporting to improve their access to finance to improve. Given that the landscape of available sustainability-related finance/supply chain finance products is constantly evolving, the Green Deal and its ESBN digital platform can support improved mobility of green capital across the region, particularly by enabling more companies and MSMEs to qualify for green financing.

Green logistics and infrastructure

Green logistics is gaining importance as it is an important part of a company’s supply chain. Key stakeholders include not only the private sector in the infrastructure and logistics sector, but also those in the Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS), whose understanding will be critical to participation, to build their green businesses and accelerate decarbonization and waste reduction efforts in developing countries ESC` argues that the private sector needs to be more involved in infrastructure developmentas a valuable partner in achieving economic, social and environmental sustainability. The Infrastructure Financing and PPP Network in Asia and the PacificLaunched in 2018, the project is a good example of how ESC` seeks to pool insights on infrastructure financing issues in Asia and the Pacific, mobilize valuable financial and technical contributions from the private sector, and stimulate more effective regional collaboration.

Green innovation and technical entrepreneurship

The world has experienced unprecedented disruption due to the COVID-19 pandemic. Under the “new normal,” businesses must change the way they operate to adapt to market realities and changes in consumer behavior. It has become important how entrepreneurs can contribute to the further development of the region as a technology and innovation center and how they can benefit from increased collaboration with the start-up community. New tools and platforms that enable greater accountability and transparency in company operations and technology entrepreneurs can also contribute to better governance and openness. For example, data analytics can be used to track and report environmental, social and governance (ESG) performance, and blockchain technology can be used to build transparent supply chains.

Before the COP28Therefore, this year’s `BF is the right time for the private sector, policymakers and academia to discuss the Asia-Pacific Green Deal for business and the important role the private sector could play in scaling up climate action. With 2023 also marking the halfway point in the deadline for achieving the Sustainable Development Goals, such a forum comes at an important time to potentially chart a brighter future for private sector action to combat extreme climate change. ESC` looks forward to the opportunity for in-depth discussions on these critical issues, to discuss the challenges and opportunities of the climate crisis, to network with ESBN members and sustainability champions across the region, and to opportunities to build new partnerships for a green transformation in Asia and Asia to use the Pacific.