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Publication - Renewable Energy Manufacturing: Opportunities for Southeast Asia
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Southeast Asia will be impacted disproportionately by climate change. Five out of its 10 economies rank among the world’s top 20 countries most vulnerable to climate change, and the region could lose up to 30 percent of its gross domestic product by 2050 due to increases in global temperature and extreme weather events.
Greenhouse gas emissions in Southeast Asia must be reduced by 10 percent to 25 percent by 2030 (relative to its current trajectory) to limit global warming to a 1.5°C pathway. Substantial and collective action by governments and businesses is required. As of today, about half of all governments within the region have committed to net-zero targets. Against this backdrop, the region’s energy consumption is also expected to grow significantly. The International Energy Agency (IEA) projects that between 2020 and 2050, Southeast Asia’s electricity demand will grow by 2.5x, and its energy consumption for transport will more than double.
A major push to electrify transportation and deploy renewable energy will be essential for the region to meet its decarbonization commitments. This is reflected in the energy strategies across the member states of the Association of Southeast Asian Nations (ASEAN). This has the potential to achieve dual objectives in Southeast Asia. Firstly, it would enable the region to meet rising energy demand while lowering carbon emissions. Secondly, the development of local manufacturing capabilities could support job creation and economic growth. In Southeast Asia, low-carbon mobility and clean power have the potential to contribute USD 90 billion to USD 100 billion in revenues by 2030, while 6 million renewable energy jobs are expected to be created by 2050.
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