Business World Online
Posted on May 23, 2014 08:13:23 PM
By Bettina Faye V. Roc, Senior Reporter
ADDRESSING climate change risks must be done both from a mitigation and adaptation standpoint, with green energy and more resilient urban planning at the forefront of this agenda, public and private representatives from East Asia said.
During the "Climate-Smart Growth" session on Friday at the World Economic Forum (WEF) on East Asia at the Makati Shangri-La hotel, high-ranking officials from multilateral agencies and industry leaders said that with natural disasters such as typhoon Yolanda (international name: Haiyan) -- which ravaged central Philippines in November last year -- now seen as the "new normal," climate change is becoming an increasingly serious risk to economic growth.
"It is obvious that we will have more severe and more frequent disasters in the region," said Asian Development Bank (ADB) President Takehiko Nakao.
"Fostering growth in this environment will require new approaches to a number of social challenges including energy consumption, urban planning and tourism," Mr. Nakao said.
Atsutoshi Nishida, Chairman of the Board of Toshiba Corp. said the region and the world are faced with the challenge of combining the twin issues of mitigating the impact of climate change and preparing the current environment for a more vulnerable kind of world in the future.
"Greenhouse emissions continue to be high... these have to be reduced dramatically. And the discussion can start after that. It is developed countries that make an objection to this idea. They should be more tolerant and discuss and address this carbon emission issue," Mr. Nishida said.
In the past, climate conversations have been confined to countries' environment ministries and within environmental advocacy groups. However, the effects of an anticipated 3-4 degrees Celsius of global warming are so pervasive that they require a broader governmental, private sector and civil society approach, according to Rachel Kyte, World Bank vice-president and special envoy for climate change.
"What we're desperate to do is to bring the conversation out of the ministries of environment alone and put it on the table of the ministry of finance, planning, development, and beyond," said Ms. Kyte.
"Every economy and aspect of life will be more complicated than how it is now... If we believe the science, for all of the current cities now and of the future, they will be more vulnerable to extreme weather events."
Panelists noted that one of the unique challenges for Southeast Asia is the concentration of urban populations along coastlines. Cities such as Manila, Bangkok and Jakarta are the engines of growth for their nations, but they are particularly vulnerable to extreme weather events, ADB's Mr. Nakao noted.
The World Bank's Ms. Kyte said that with climate change a looming threat, if it is not addressed properly, economic growth in the region will be constrained.
"Jobs will be constrained. Shared prosperity... we don't think that's possible without any action to address climate change," Ms. Kyte noted.
In order to promote economic growth with these climate-related challenges, the region needs new approaches to energy policies and consumption, said Kim Dong Kwan, Managing Director of South Korea's Hanwha Group.
"Green energy is really starting to make economic sense. While climate change is a very moral issue, it's also a very economic issue... And note that these investments are long-term. Investing in these kinds of technology now makes a lot of sense when faced with such a future," said Mr. Kim.
"Countries put in highways, roads to stimulate the automotive industry. It's time to look at smart grids or financing mechanisms for these kinds of sustainable energy systems."
The push towards more climate-smart growth, said the World Bank's Ms. Kyte, could also be addressed by putting a price tag on these risks or factors that contribute to this problem.
"You have to set the premise that climate change will make it more difficult for everyone to achieve things. Carbon, for example -- you need to take it as a global bad instead of a global good. Put a tax on it," she said.
"Price carbon and stop subsidizing what you don't want. And then, start using that financing to intensify growth where you do want it," Hanwha's Mr. Kim noted. "Climate-smart means thinking through the impact of these carbon emissions, and the importance of resilience in every aspect of the economy."
"There is also a tremendous role for the private sector both in lobbying governments and in advancing new, climate-smart business models. The pressure and the change are within the investor and within the private sector," said Yolanda Kakabadse, president of the World Wildlife Fund (WWF) International.
ADB's Mr. Nakao said that the participation of the private sector is especially important in terms of financing.
"These are investments... and we should have a more collective international actions. We also need policies at the government level. Innovation is important," he noted.
The ADB chief elaborated at the sidelines of the forum: "The government's role is important because the environment and climate change is an externality or a market failure issue, which means that [the] private sector doesn't invest in climate change or the environment. This side is guided by government policies."
Mr. Nakao said that such policies should involve strict regulations and taxation systems designed to curb carbon emissions produced by different industries.
Energy consumption and generation, Toshiba's Mr. Nishida added, also play a great part in the climate change discussion.
"Find out the best energy mix for each country... Utilize resources to make sure energy generation is more efficient. Because energy and climate change are part of a cycle," Mr. Nishida said.
Technological innovation in energy storage is one area where businesses can play a major role, he said.
Mr. Nakao also noted, however, that breakthroughs in green energy technology will not be enough to mitigate the effects of existing climate change.
"Micro-insurance, efficient urban transport and innovations in disaster-resilient construction techniques are areas in which businesses can play a leading role in improving the region's ability to weather the adverse effects of climate change and take advantage of climate-smart opportunities," he said.
"Many countries in Asia are keen to learn and adopt the best practices in environment and climate change... but most still want to grow further and reduce poverty. They can grow fast and grow smart together, but there is a certain dilemma."
"Combining these ideas together would need the help of the international community as a whole. Sometimes developing countries will have a harder time of adapting... but support is important," the ADB president said. -- with AMM source
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