THE high level of prosperity attained by countries in the Asia and the Pacific region, including the Philippines, has come at a great environmental cost, according to the Asian Development Bank (ADB).
In its latest report, the Manila-based multilateral development bank said governments must work together to improve regional integration which must include green initiatives.
These initiatives include promoting trade in environmental goods and services, nurturing green businesses, developing carbon pricing mechanisms and strengthening regional cooperation through trade and investment agreements.
“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,” Park said.
The report stated that Asia’s production-related carbon dioxide emissions almost tripled between 1995 and 2019, largely reflecting the region’s unparalleled pace of economic growth and industrialization to satisfy demand—both within the region and in export markets.
This has made the Asia and the Pacific region warm faster than any part of the world. Almost 40 percent of the world’s disasters occur in the region.
The ADB said more than 70 percent of people affected by disasters live in Asia and the Pacific. It noted that these disasters disproportionately affect women and vulnerable populations.
In order to reverse this, the ADB said governments in the region can make trade and investment more sustainable and greener by promoting the trade of environmental goods, such as solar panels, and services.
The ADB also recommended nurturing green businesses through regulations, incentives, standards, and certification systems.
It also said there is a need to enhance international regulatory cooperation to make climate commitments and actions transparent, firm, interoperable, and collaborative as well as develop carbon pricing mechanisms at both national and cross-border levels, through linkages and regional alliances.
The Asian Economic Integration Report (AEIR) 2023 reviewed Asia and the Pacific’s progress on regional cooperation and integration and the states of trade, cross-border investment, financial integration, and the movement of people.
According to the 2023 report, integration in the region is progressing steadily and will remain stable in 2020 despite the Covid-19 pandemic. Trade growth, meanwhile, moderated in 2022 following a strong rebound in 2021.