South Asia embraces global energy transition for sustainable growth

DHAKA: South Asia is navigating a potentially perilous economic future, as highlighted in the World Bank's recent regional economic update. In the report, the World Bank underscores the importance of fully leveraging the global energy transition to bolster growth in the region.

A two-day conference titled "Toward Faster, Cleaner Growth," jointly organized by the BRAC Institute of Governance and Development (BIGD) and the World Bank, is currently underway. The conference serves as a platform for scholars, experts and researchers to deliberate on the opportunities and challenges inherent in South Asia's quest for sustainable, green growth. The governments of South Asia find themselves constrained by decelerating economic growth and fiscal limitations, which restrict their ability to harness the immense potential offered by the global energy transition.

This transition, however, presents a unique opening to enhance productivity, stimulate investment, create jobs, mitigate air pollution, and curtail dependence on fuel imports. Even within the confines of limited fiscal resources, countries can encourage businesses to adopt energy-efficient technologies through market-driven regulations, public awareness campaigns, improved access to finance, and the establishment of reliable power grids.

MA Mannan, Bangladesh's Minister for Planning, highlighted the strides made in green development. He pointed out that Bangladesh's garments sector now stands as one of the world's leaders in the number of green Mannan said,"Bangladesh has made some impressive progress in green development. For example, our garments sector ranks among the world's best on the number of green factories".

"We must continue on the path outlined in Bangladesh's Energy Efficiency and Conservation Master Plan, which includes a series of programs that aim to help large industrial energy consumers, residential consumers, buildings, private companies, and government agencies move toward energy efficiency", said Mannan.

Enhancements in energy efficiency could expedite progress toward both economic and environmental objectives in South Asia. The region currently expends twice as much energy as the global average to produce each unit of output. While South Asian businesses eagerly embrace fundamental energy-efficient technologies, there's room for improvement in the adoption of more advanced solutions.

Abdoulaye Seck, the World Bank Country Director for Bangladesh and Bhutan, emphasized that Bangladesh is among the nations most vulnerable to climate change.

Seck said, "Bangladesh is among the countries most vulnerable to climate change".

"And as the intensity and frequency of natural disasters increase, Bangladesh must do more to tackle the environment and climate risks and sustain its strong growth performance. Green growth can help Bangladesh build long-term resilience against climate risks while help to attain its vision of becoming an upper-middle-income country", Seck added.

He asserted that as the frequency and intensity of natural disasters escalate, Bangladesh must intensify its efforts to mitigate environmental and climate-related risks while sustaining its robust economic performance.

Seck believes that green growth can help Bangladesh build long-term resilience against climate threats, aligning with its vision of achieving upper-middle-income status. The energy transition will inevitably reshape South Asia's labor markets. Currently, nearly one-tenth of the region's workforce is employed in industries known for their pollution-intensive practices.

Such employment is disproportionately concentrated among lower-skilled and informal workers, leaving them vulnerable to potential job and income losses during the energy transition. While the shift toward greener practices promises the creation of new job opportunities, it may also displace workers from declining sectors.

The report recommends a diverse array of policies to safeguard these workers, encompassing improved access to high-quality education and training, financial support, and market access.

Additionally, worker mobility and robust social safety nets are deemed essential. Imran Matin, BIGD Executive Director, stressed the centrality of green growth to the conference's agenda.

Matin observed that given South Asia's population and demographic landscape, the green growth agenda is both a central concern and an arena for fostering innovation.

Matin stated, "In this conference, we will truly emphasize the agenda of green growth and delve deeply into the choices we can make and how we can deliver on this agenda. In South Asia, given the salience of our population and demographics". He believes that this agenda cannot be advanced without meticulous consideration of its contribution to economic growth. An interdisciplinary approach is vital for comprehending green growth fully. As the conference unfolds, it serves as a dynamic platform for in-depth exploration of strategies for achieving sustainable, clean growth in South Asia, addressing both economic and environmental imperatives.