The case for green growth in Southeast Asia

The ten member countries of the Association of Southeast Asian Nations (ASEAN) will need to shift to a more sustainable development path in order to sustain economic growth, reduce poverty and achieve durable gains in well-being. Natural capital accounts for more than 20% of total wealth, well above the 2% average in OECD countries. Yet the rapid economic growth the region has enjoyed in the recent past has relied on intensive resource exploitation and is leading to the depletion of natural capital. Growing rates of pollution threaten health and productivity and, though still relatively low, ASEAN countries’ share of global greenhouse gas emissions is expected to surge. The chapter outlines a set of framework policies for greening growth in the region, ranging from improving governance, tax reforms and the removal of fossil fuel subsidies to upgrading competition and labour market policies. It proposes a set of green growth indicators that can help policy makers to track progress towards green growth and evaluate policies.