The Asian Development Bank (ADB) has called for green trade and investment policies to tackle the effects of climate change in the Asia-Pacific region. During a virtual briefing on Tuesday, the ADB Chief Economist, Albert Park, emphasized the importance of aligning trade and investment policies to support the fight against climate change, especially as Asia accounts for half of global carbon dioxide emissions and 40% of natural disasters.
The ADB Principal Economist, Jong Woo Kang, stated that Asia’s regional integration relies on trade, investment, and finance. He added that the region has the potential to deepen value chains in high-tech and service industries and that digital technologies and regional cooperation could help increase remittance inflows and boost the recovery of the tourism sector. However, Kang also noted that Asia’s rapid economic growth and industrialization has made the region both a net importer and exporter of carbon emissions.
Kang further stated that cross-border investment may face challenges this year due to tightening liquidity conditions, a potential global slowdown, and the impact of the Ukraine conflict. He also highlighted that digitalization could reduce the cost of remittances and that regional cooperation could help boost tourism.
The ADB emphasized that trade and investment policy must be integrated into climate action by transitioning to service-driven economies and taking advantage of technological advancements. The bank also believes that international cooperation is crucial for ensuring the seamless flow of essential goods and promoting green technologies.
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