Southeast Asia’s turning point

The cost of doing nothing could be economically devastating

US$28 trillion lost from Southeast Asia’s economy by 2070.
The economic cost of unchecked climate change in Southeast Asia is equivalent to losing nearly a decade of economic activity.

Source: Deloitte Economics Institute. ASEANstats.

We have a narrow window of time to change the future. Decisions need to be made in the next decade to combat the worst impact and accelerate economic growth.

Acting on climate change is the new economic engine.

US$12.5 trillion added to Southeast Asia’s economy by 2070.
A gain of nearly US$2.5 trillion in 2070 alone – equivalent to increase that is 80% of Southeast Asia’s 2019 economy.

Source: The World Bank. (2021). ASEANstats.

Southeast Asia has much to lose from inaction.

Unchecked climate change will impact over 80% of Southeast Asia’s current economic output threatening decades of hard-won growth. Services, manufacturing, and retail and tourism are among those most affected industries.

Source: Deloitte Economics Institute.

Southeast Asia has much to gain from action.

Rapid decarbonization could enable Southeast Asia to significantly transition away from fossil fuel sources, falling to 10% by 2070. Southeast Asia should accelerate its clean energy transition.

Source: Deloitte Economics Institute.

1. 2021 to 2030—Bold climate plays: Decisions begin to impact decarbonization and the economy benefits from significant investments in sustainable technology.

2. 2030 to 2040—Coordinated change: Economic shifts occur in policy, energy, and consumers. Ongoing structural change delivers modest economic benefits relative to those realised from initial bold climate plays in previous decade.

3. 2040 to 2050—Turning point: Economic gains continue to rise steadily as a result of the direct economic benefits of decarbonization.

4. 2050 onwards—A low-emission future: Southeast Asia’s economy is near net zero emissions and operates in a world that keeps global warming to around 1.5°C. Rapidly gain economic dividends from global decarbonization.