ASEAN Calls for Global Cooperation for Green Economy
The commitment was echoed during the first day of the International Sustainability Forum (ISF) held in Jakarta, Indonesia. The forum gathered world leaders, decision makers, CEOs and sustainability experts.
Chairman of Indonesian Chamber of Commerce and Industry Arsjad Rasjid said in his keynote speech that Southeast Asia has strong bargaining power as it possesses large potential for renewable energy and natural resources. Not to mention that Indonesia, in particular, also has peatlands, rainforests and mangrove ecosystems that have tremendous potential for decarbonization efforts.
"ASEAN has the potential to become a leader in the green economy and energy sectors. We can see that we have electrification products, from electric vehicles (EVs) to battery ecosystems produced by green energy," Rasjid said. "Those unique assets give ASEAN the opportunity to complement its economic growth with environmental stewardship."
However, he said, to achieve that, developing countries needs connectivity with developed countries so that it could be a new axis in green economic growth to promote sustainability.
During the opening ceremony, Indonesian President Joko Widodo highlighted Indonesia's significant energy potential, boasting over 3,600 gigawatts. He showcased the floating solar power plant in Cirata Reservoir, with a capacity of 192 megawatt peak, claiming it to be the largest in Southeast Asia and the third largest in the world.
He also emphasized Indonesia's exceptional potential in carbon sequestration through its 3.3-million-hectare mangrove forests, the largest in the world, which can absorb carbon 8 to 12 times more effectively than tropical rainforests. Additionally, he mentioned the 13,000-hectare green industrial zone in Kalimantan, open to foreign green investment.
"To maximize our efforts to create more affordable access to green energy, Indonesia is very open to cooperation in green investment with other countries, especially in creating access to green energy," the president said.
In a panel discussion, Singaporean Minister for Manpower and Second Minister for Trade and Industry Tan See Leng stressed the importance of international cooperation and urged ASEAN to move forward quickly.
"The more governments come together, be transparent, and allow private investors and financial institutions to start funding, there will be positive spillover effects. By working together as one ASEAN bloc, we can achieve the target," Tan said.
Oscar Luo Hai Ning, deputy head of International Investment Management at Chinese battery manufacturer CATL, said that his company is striving to meet market demands and advance innovations by strengthening partnerships.
"The demands are growing very fast. We can see the governments of the world have made commitments to sustainability and renewable energy. We want to invest in energy storage for intelligent charging stations and we also look for other innovative electrifications," Luo said.
Regarding green investment, Indonesian Minister of Investment Rosan Roeslani noted that global green economy policies could increase investment, innovation, and sustainable global trade, while calling for vigilance over potential risks.
The minister said that policies like the European Union's carbon pricing and the U.S. inflation reduction law posed potential risks, including deglobalization, "therefore, governments and industries need to be more vigorous and adaptive in facing this dynamic geo-economic situation," he added.
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