How can Indonesia, the Philippines and Vietnam join the ‘green race’ to take advantage of growing low-carbon markets? The global economy is transitioning towards cleaner and less carbon-intensive forms of growth. Demand for low-carbon products is expected to grow at 11% per year, between 2020 and 2050, and could accelerate as the world enters a zero-carbon paradigm. ClimateWorks and Vivid Economics have partnered to highlight how these countries can be at the forefront of this global low-carbon transition by taking advantage of nascent and emerging opportunities that will help their economy be resilient and future focused.
Indonesia can be competitive in the global low-carbon transition by taking advantage of key market opportunities in geothermal, energy storage and industrial efficiency. Our analysis with Vivid Economics highlights how a low-carbon industrial strategy can help realign Indonesia’s economy towards these increasingly profitable sectors and leverage their strengths to improve its position in the ‘green race’. Further, Indonesia should not delay its efforts to scale up low-carbon industries, given the benefits a low-carbon industrial strategy can deliver for economic diversification and growth.
Specialisation in green technologies such as solar photovoltaic and lighting can help the Philippines achieve an industrial strategy that is inclusive and innovation-led, propelling growth in green jobs and reaching energy security. Our research with Vivid Economics, highlights that the Philippines already has significant export strengths in solar PV and efficient lighting, with promising opportunities in geothermal and energy storage. For the Philippines to be competitive in the global low-carbon economy, it requires a robust low-carbon industrial strategy to consolidate these promising opportunities.
Vietnam stands at an inflection point, primed to take advantage of strong policies and human and natural capital to build its competitive advantage in a low-carbon economy. Our analysis with Vivid Economics highlights how Vietnam is already a specialist in components required for smart grids and energy storage with promising opportunities in other technologies such as solar PV and wind power. A low-carbon industrial strategy can help realign Vietnam’s economy towards these increasingly profitable sectors and help maintain its high economic growth. If implemented, Vietnam stands to gain substantially from this strategy, with some estimates indicating savings of over US$23 billion to 2030. These savings are predicted to come from a renewables-led pathway where renewable energy generation capacity will quadruple in the same period.