Escap: Promoting green economy in the Asia-Pacific region

It is time for more and faster action to address the climate change crisis. The Sixth Assessment Report of the Intergovernmental Panel on Climate Change estimates that to limit warming to 1.5°C above pre-industrial levels, global greenhouse gas emissions must be reduced by 43 per cent by 2030, compared to 2019 levels. However, the latest UNFCCC synthesis report estimates that greenhouse gas emissions will be reduced by just 0.3% by 2030 compared to 2019 levels - highlighting the huge gap that needs to be addressed.

In this regard, the private sector should and can play a leading role, working closely with governments and communities to achieve a green transformation in the region. As the annual regional meeting of the Sustainable Development Network (ESBN) of the United Nations Economic and Social Commission for Asia and the Pacific, the Asia-Pacific Business Forum (APBF) is an excellent opportunity to mobilize the private sector in the region to contribute more to the green transformation of the region.

The Asia-Pacific Business Forum 2023, held in November this year under the theme "Business Green Deals in Asia Pacific: Driving a Green Transition", focused public attention on the challenge of climate change, its impact on all 17 Sustainable Development Goals (SDGS) and innovative solutions. In essence, the key challenges and opportunities for action for the private sector in the five pillars of the APAC Business Green Deal are:

Advancing zero-carbon, affordable and resilient energy systems.

Build smart, low-carbon, water-secure and climate-resilient cities, infrastructure and transport.

Mobilizing public and private finance for the green transition.

Accelerate and expand innovation to promote sustainable development.

A shift to a more circular economy.

Specifically, the forum will focus on three key areas: how tools such as the Green Deal digital platform can be used to support green finance, green logistics and infrastructure, and green innovation and technology entrepreneurship to support corporate green deals in the Asia-Pacific region.

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Green finance and green trading digital platform

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Finance is central to driving the green transition. The difficulty of accessing finance for micro, small and medium-sized enterprises (MSME) has been well documented, and governments and relevant agencies have put in place various policies and mechanisms to facilitate the flow of finance to these enterprises. With increasing demands on companies to monitor, report and reduce their carbon footprint, it is even more important that businesses, especially Msmes, understand and leverage existing digital platforms for environmental, social and corporate governance and sustainability reporting to improve access to finance. Given the growing availability of sustainability-related finance/supply chain finance products, Green Deal and its ESBN digital platform can support the improvement of green capital mobility across the region, in particular by enabling more businesses and Msmes to qualify for green finance.

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Green logistics and infrastructure

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Green logistics is an important part of enterprise supply chain, so it is getting more and more attention. Key key players include not only the private sector in the infrastructure and logistics sectors, but also the private sector in least developed countries, landlocked developing countries and small island developing States, whose understanding is essential to participate, build their green enterprises and accelerate decarbonization and waste reduction actions in developing countries. Escap argues that the private sector, as a valuable partner in achieving economic, social and environmental sustainability, needs to be more meaningfully involved in infrastructure development. The Asia and Pacific Infrastructure Financing and Public-Private Partnership Network, launched in 2018, is a good example of how ESCAP seeks to pool insights on infrastructure financing issues in Asia and the Pacific, mobilize valuable financial and technical input from the private sector, and promote more effective regional cooperation.

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Green innovation and technology entrepreneurship

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The COVID-19 pandemic has brought unprecedented chaos to the world. Under the "new normal," organizations must change the way they operate to adapt to market realities and changes in consumer behavior. How entrepreneurs can contribute to the continued development of the region as a hub of technology and innovation, and how they can benefit from enhanced collaboration with the start-up community, has become important. New tools and platforms can improve accountability and transparency in business operations, and tech entrepreneurs can also contribute to improved governance and greater openness. For example, data analytics can be used to track and report on environmental, social and governance (ESG) performance, and blockchain technology can be used to build transparent supply chains.

Ahead of COP 28, this year's Asia-Pacific Forum is therefore timely for the private sector, policymakers and academia to discuss corporate green deals in the Asia-Pacific region and the important role that the private sector can play in scaling up climate action. With 2023 also the midpoint of the deadline for achieving the Sustainable Development Goals, this forum comes at an important time with the potential to chart a better future for private sector action on extreme climate change. Escap looks forward to the opportunity to engage in in-depth discussions on these important topics, explore the challenges and opportunities posed by the climate crisis, connect with ESBN members and sustainable development advocates in the region, and seize the opportunity to forge new partnerships for a green transition in the Asia-Pacific region.

Source: United Nations Trade Network