ADB forecasts rosy future for 'green' investments
October 10, 2005
Manila - The market for "green" investments and products in the Asia-Pacific region was expected to triple in the next 10 years, making protecting the environment a profitable venture, the Asian Development Bank (ADB) said Monday.
In a report, the Manila-based multilateral lending agency said Asia and the Pacific currently accounts for $37 billion (R241.2 billion) of the burgeoning global market for environmental goods and services.
"With a growth rate of 8-12 percent - the fastest in the world - the regional market is expected to triple to $100 billion by 2015," according to the ADB's Asian Environmental Outlook (AEO) 2005 report.
Nessim Ahmad, director of ADB's environment and social safeguards division, said governments across the region were "increasingly ready to take on environmental challenges" such as air and water pollution as well as forest degradation.
"Enforcement of pollution control laws is tightening, budgets for environment protection are increasing, and judiciaries are taking tougher stances," he added.
As consumers demand "greener and more environment friendly products," Ahmad said more investments were needed in "wastewater treatment, solid waste management, sustainable public transport, as well as clean and renewable energy systems".
"While not all firms will be able to benefit from the expected boom in environmental investments, most should have an opportunity to gain from environmentally based product differentiation if they recognise this and act," he added.
In the AEO report, the ADB noted that despite progress in recent years, the region's campaign for environment protection was still lacking a critical factor - "a fully engaged private sector".
It noted that while governments determine the rules, greater corporate engagement and environmental responsibility was necessary because companies are the ones that use natural resources, make products and generate pollution.
"The key is for governments to give the private sector the incentive and flexibility to find low-cost ways to meet agreed environmental management objectives," Ahmad said.
The ADB said the growing demand for green investments and products has created "new incentives for corporate attention to the environment".
"New and greener products - together with an anticipated massive investment in environmental infrastucture throughout the region - show that environmental cleanup and protection offer strong business and employment creation opportunities," the report said. - Sapa-dpa
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