Despite maintaining high levels of economic growth for a long time, South Asia today faces risks. The latest report of the World Bank on the regional economic situation says so. The report also highlights the huge potential for sustaining high growth in the region by participating in the ongoing energy transition around the world, primarily as a solution to global warming. Towards Faster, Cleaner Growth is the theme of the two-day conference organized by the BRAC Institute of Governance and Development (BIGD) and the World Bank starting today in the context of this report. The conference provided an opportunity for researchers, policy makers, and development workers to have an effective discussion in the light of research on the prospects and challenges of green growth in the region.
Taking advantage of the global energy transition, South Asia can increase productivity and investment and create jobs, reduce air pollution, and reduce dependence on energy imports. However, taking this opportunity to increase economic growth, the governments of South Asia have to limit those activities due to the slow growth and financial challenges. But although the financial investment capacity is limited, South Asian countries can take various effective measures in this regard. For example, through supportive market policies, information dissemination, financing facilities, and the creation of reliable electricity systems, governments can encourage businesses to adopt various energy conversion technologies, such as efficient energy technologies.
Improving energy efficiency can accelerate progress on both economic and environmental goals in South Asia. The region consumes twice the global average energy per unit of economic output, which is equally damaging to the environment and the economy. While South Asian businesses have enthusiastically adopted a variety of early-stage energy-efficient technologies, adoption of more advanced and new technologies has lagged behind. If they get incentives, they will go ahead in this regard.
“Bangladesh has made unprecedented progress in green development. For example, our garment factories are among the best green factories in the world,” said Planning Minister M.A. mannan. He was present as the chief guest at the opening ceremony of the conference.
Mannan also said, “We have to continue on the path shown by the Energy Efficiency and Conservation Master Plan of Bangladesh. The plan outlines how large industrial and energy users, residential customers, private institutions and government agencies can achieve energy efficiency.”
“Bangladesh is one of the most vulnerable countries to climate change,” said World Bank Country Director for Bangladesh and Bhutan, Abdulai Sek. He further said, “Bangladesh must be more proactive in addressing environmental and climate related risks as the intensity and frequency of natural disasters increase. At the same time, many more steps need to be taken to maintain the country’s ongoing strong growth. Green growth can help Bangladesh build long-term resilience against climate risks and achieve its goal of becoming an upper-middle income country.”
This energy transition could reshape South Asia’s labor market. About one-tenth of the workers in the region are engaged in pollution-prone jobs. These jobs are done by low-skilled and marginal workers. They usually take risks like this because of their acute need. While energy transitions can create new jobs for such marginalized people, the transition may leave many trapped in those declining industries and negatively affected. The report recommends a wide range of policies to protect them, including high-quality education and training, financing and market access; Facilitating staff mobility; and strengthening the social security system.
“In this conference we emphasized the green-growth agenda and sought to explore in depth what kind of plans and policies we can adopt to take this agenda forward,” said BIGD Executive Director Imran Mateen. He added, “The green-growth agenda is not only the most important thing in South Asia, considering our huge population and demographic characteristics. Rather, it is equally important to encourage innovation around this agenda and we intend to move forward in that direction. But the green-growth agenda will never materialize unless it can simultaneously ensure economic growth. Therefore, to understand this issue we need to use the combined knowledge of physical and social sciences, such as technology, economics and political science. Only then will inclusive green prosperity be possible.”