ASEAN calls for global cooperation for green economy at Jakarta forum
JAKARTA: The Association of Southeast Asian Nations (ASEAN) is fostering global cooperation between developed and developing countries in the green economy, promoting efforts towards a clean energy transition.
This commitment was reiterated during the first day of the International Sustainability Forum (ISF) held in Jakarta, Indonesia, from Thursday to Friday. The forum brought together world leaders, decision-makers, CEOs, and sustainability experts.
In his keynote speech, Chairman of the Indonesian Chamber of Commerce and Industry, Arsjad Rasjid, highlighted Southeast Asia's strong bargaining power due to its substantial potential for renewable energy and natural resources. He noted that Indonesia, in particular, possesses peatlands, rainforests, and mangrove ecosystems with significant potential for decarbonisation efforts.
"ASEAN has the potential to become a leader in the green economy and energy sectors. We have electrification products, from electric vehicles (EVs) to battery ecosystems produced by green energy," Rasjid said. "These unique assets give ASEAN the opportunity to complement its economic growth with environmental stewardship."
However, he emphasised that developing countries need connectivity with developed nations to become a new axis in green economic growth and promote sustainability.
During the opening ceremony, Indonesian President Joko Widodo underscored 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 megawatts peak, claiming it to be the largest in Southeast Asia and the third largest in the world.
He also highlighted Indonesia's exceptional potential in carbon sequestration through its 3.3-million-hectare mangrove forests, the largest in the world, which can absorb carbon eight 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 maximise 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, stated that his company is striving to meet market demands and advance innovations by strengthening partnerships.
"The demands are growing very fast. We see that governments worldwide have made commitments to sustainability and renewable energy. We want to invest in energy storage for intelligent charging stations and seek 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 mentioned that policies like the European Union's carbon pricing and the US inflation reduction law posed potential risks, including deglobalisation. "Therefore, governments and industries need to be more vigorous and adaptive in facing this dynamic geo-economic situation," he added.
