Small private businesses that aim to fight climate change and prevent more environmental destructions are flourishing rapidly in Asia.
Globally, the current worth of these environment-friendly businesses has reached over $1 trillion, according to a report by the World Bank Group’s International Finance Corp (IFC). This suggests that there are a lot of opportunities in fighting climate change and most importantly, this means that there are a lot of entrepreneurs that are more than willing to splurge funds to invest for a greener and cleaner future.
For instance, China has an e-logistics company, Houchebang, which is an online platform that serves to coordinate 350,000 shippers and 2.3 million truckers in the country’s 360 cities. “Its service reduces empty miles and waiting times between loads, making shipping more environment-friendly,” writes Vivek Pathak, the director of IFC East Asia. The e-logistics concept largely improves the efficiency of shipping services and reduces greenhouse gases emission in the process.
In addition to China’s Houchebang, there is also Attero Recycling, a pioneering e-waste recycling service in India. It extracts precious metals from discarded electronic devices and parts. The Philippines also has its eco-friendly company, the Imperial Homes, which constructs green buildings and low-cost low-carbon housing projects, and ultimately help low-income Filipinos save electricity. On the average, the company’s Via Verde houses consume 30% lesser energy, water, and construction materials.
Green buildings, renewable energy, and climate-smart urban transportation represent the majority of the eco-friendly market, each worth around $350 billion. The rest of the market includes municipal waste management, energy storage, and water recycling. According to the International Energy Agency, the fast growth of this market sector is expected to continue that by 2040, global investments in renewable energy alone would reach $11 trillion yearly, and fifty percent of which goes to Asia Pacific.
The IFC’s latest report entitled “Creating Markets for Climate Business,” demonstrates that these small private businesses collectively play a big role in supporting developing countries reach their climate goals. For instance, 20 percent of Papua New Guinea’s population, for the first time, now have access to off-grid renewable energy, thanks to the $3.3 million invested by Australian and New Zealand governments.
The growth of eco-friendly businesses in Asia will continue and enable these innovative efforts to reach the climate change target if smart policies on emissions and waste will be supported and implemented by Asian governments. Amendments in current policies to support the fight against climate change could elicit more investments in this sector resulting in more jobs and ultimately to a greener future.
[Via Nikkei Asian Review]
