Vietnam News reported recently that Best, Google, Standard Chartered Bank and other institutions jointly released the Southeast Asia Green Economy Report 2025, analyzing the development of Southeast Asia's green economy and proposing a systematic approach to promote green transformation, and achieve coordinated development of economic, environmental and social benefits through system-level solutions, supportive solutions and regional cooperation.
Current status and challenges of Southeast Asia's green economic development
Southeast Asia's green economic transformation has made some progress, but there is still a gap with the 2030 climate goals. Emissions in the region are growing, relying on fossil fuels, and economic development is threatened by climate change. At present, renewable energy accounts for 9%, electric vehicle penetration is low, green investment and industrial development are lagging, and there are challenges such as trade restrictions and policy instability, which require a balance between economic growth and transformation.
System-level solutions
Sustainable bioeconomy: The bioeconomy occupies an important position in Southeast Asia's economy, but the current development model leads to emissions and deforestation. By improving the productivity of small farmers, developing natural solutions, and accelerating the production of sustainable biofuels, emissions can be reduced, jobs can be created, and economic growth can be promoted. For example, by 2030, it is expected to reduce about 230 million tons of CO₂ equivalent emissions and create about 340,000 jobs.
Next-generation grid development: Existing grids are difficult to adapt to the development of renewable energy and need to be upgraded and interconnected across borders. Measures such as attracting private investment, promoting regulatory reforms, and building green industrial clusters can improve grid efficiency and promote the integration of renewable energy. It is expected that by 2030, it will reduce about 5,000 tons of CO₂ equivalent emissions and create about 200,000 jobs.
Electric vehicle ecosystem: Southeast Asia has high road traffic emissions and low electric vehicle penetration. It is necessary to implement a dual strategy of stimulating demand and strengthening local production, improve charging infrastructure, and develop green transport corridors. It is expected that by 2030, it will reduce about 4,000 tons of CO₂ equivalent emissions, create about 350,000 jobs, and promote the region to become an electric vehicle manufacturing center.
