Greener trade crucial to tackle climate change in Asia-Pacific: ADB

Whilst trade and investment have driven economic growth in the region, they have also led to a significant increase in carbon dioxide emissions, making Asia and the Pacific more vulnerable to the effects of climate change than any other region in the world.

Governments in the region can take measures to make trade and investment more sustainable and greener by promoting the trade of environmental goods and services; supporting green businesses through regulations, incentives, standards, and certification systems; enhancing international regulatory cooperation to make climate commitments and actions transparent, firm, interoperable, and collaborative; and developing carbon pricing mechanisms at both national and cross-border levels, through linkages and regional alliances, according to the report.

“Asia and the Pacific’s remarkable growth has lifted millions of people out of poverty, but this has come at an environmental cost,” said ADB Chief Economist Albert Park. “The region now finds itself on the frontline of the climate crisis, which can derail development progress. Trade and investment remain as one of the most important drivers for growth and poverty reduction, but governments in the region need to intensify their cooperation to make trade and investment greener.”

The report also highlighted that the region's production-related carbon dioxide emissions have almost tripled between 1995 and 2019, largely due to the region's economic growth and industrialisation to meet both domestic and export demand. Asia and the Pacific are now warming faster than any other part of the world, and almost 40 per cent of the world's disasters occur in the region, affecting over 70 per cent of the people affected by disasters globally.

The AEIR 2023 reviews the progress of regional cooperation and integration, cross-border investment, financial integration, and the movement of people in Asia and the Pacific. Integration in the region is progressing steadily and remained stable in 2020 despite the COVID-19 pandemic, while trade growth moderated in 2022 following a strong rebound in 2021, the report stated.

Fibre2Fashion News Desk (CG)