Page 102 - Ebook HTKH 2024

Access to preferential capital sources: ASEAN countries can take advantage of
grants and support from international organizations such as the Asian Development

Bank (ADB), the World Bank (WB), and global climate funds to implement green
projects and reduce emissions.
Green industry development and new job creation: The transition to a green
economy will create new industries and job opportunities in areas such as renewable
energy production, waste management, and green building construction.
Challenges for ASEAN
Dependence on fossil energy: Many ASEAN countries, especially Indonesia and
Vietnam, still rely heavily on fossil energy, especially coal. This creates a major

challenge in the transition to a green economy due to the traditional energy infrastructure
and production systems that depend on polluting resources.
Financial and technological constraints: Developing a green economy requires
large capital and advanced technology. However, many countries in the region still do
not have enough financial and technological resources to implement large-scale green
projects.

Incomplete legal and policy framework: Despite commitments on emission
reduction and sustainable development, the legal and policy frameworks in some
ASEAN countries are still incomplete or unenforceable, making it difficult to apply
green measures widely and effectively.
Consumer perceptions and habits: The transition to a green economy requires a
change in the perception of people and businesses about the role of environmental
protection and sustainable use of resources. However, traditional consumption habits

and short-term economic development thinking are still popular in many ASEAN
countries.
5. Some policy implications for green economic development in ASEAN
Based on the current situation of green economy development in ASEAN
countries, there are several policy implications that need to be put in place to promote
the transition to a green economy and achieve the sustainable development goals in the

region:
Increasing investment in renewable energy and clean technology
ASEAN countries need to continue to promote Investing in Renewable Energy in
order to reduce dependence on fossil energy. To do this, the government needs to have
clear incentive policies such as:
Offer financial incentives: Such as subsidies and tax breaks for renewable energy
development projects, including solar, wind, hydropower, and biomass.
Building supporting infrastructure: Invest in technical infrastructure such as

energy storage systems and smart grids to enhance the efficiency and connectivity of
renewable energy sources.
Attracting foreign investment: ASEAN needs to create a favorable environment
for foreign investment in the green energy sector by improving the legal system and
reducing administrative hurdles.

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