The OECD’s Economic Outlook

Renewable energies – an opportunity for green growth in Southeast Asia

Cover: Economic Outlook for Southeast Asia, China and India 2016

Press release of 14.04.2016 |

Berlin – The development of renewable energies has a key role to play in boosting green growth in Southeast Asia. That is one of the core messages of the OECD’s Economic Outlook for Southeast Asia, China and India 2016. There is, at the same time, a need for more regional cooperation in order to achieve this. The event to present the OECD report in Berlin was opened today by Hans-Joachim Fuchtel, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development.

Asia is facing the challenge of finding climate-friendly ways to meet its growing demand for energy, Fuchtel emphasised. In the next 25 years, energy demand in Asia is set to double. Meanwhile, the region already accounts for 60 per cent of global CO2 emissions. And, at the same time, half of the countries most affected by climate change are located in the Asia-Pacific region.

"We need a new economic model,” Hans-Joachim Fuchtel said. "A model that protects natural resources and that benefits all people. That is why I am also calling on the business sector to shoulder a share of the responsibility. We cannot achieve the necessary transformation without private enterprises.” Development cooperation efforts are therefore geared towards getting both national and international companies involved in the work being done in these countries.

Fuchtel also reminded his audience that the annual meeting of the Asian Development Bank (ADB) will be taking place from 2 to 5 May in Frankfurt. This is the first time that the Bank, which was founded in 1966, has held the meeting in Germany. During the annual meeting, climate and sustainability are two of the topics that will be high on the agenda.

"The Asian Development Bank is a key partner for us in our efforts to help meet these challenges. That is why I am very pleased that the ADB intends to double its funding for climate finance,” Fuchtel said.

State Secretary Fuchtel cited the connecting of renewable energy sources to the grid in India and the expansion of sustainable energy systems in Viet Nam as examples that show how the experience Germany has garnered from its own energy transition and the associated know-how can be passed on to the partner countries of German development cooperation in Asia.

According to this year’s Economic Outlook for Southeast Asia, China and India, the Asian region can expect 6.2 per cent growth in the medium term (2016 to 2020). The report examines, among other things, what the increased use of renewable energies will mean for the region in terms of opportunities and recommends that Asian countries should aim to make their growth more environmentally compatible.

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