ADB says 'green' investments to triple in 10 years

ADB says 'green' investments to triple in 10 years

Deutsche Press-Agentur, Manila

The market for "green" investments and products in the Asia-
Pacific region was expected to triple in the next 10 years,
making protecting the environment a profitable venture, the Asian
Development Bank (ADB) said on Monday.

In a report, the Manila-based multilateral lending agency said
Asia and the Pacific currently accounts for US$37 billion of the
burgeoning global market for environmental goods and services.

"With a growth rate of 8-12 percent -- the fastest in the
world -- the regional market is expected to triple to $100
billion by 2015," according to the ADB's Asian Environmental
Outlook (AEO) 2005 report.

Nessim Ahmad, director of ADB's environment and social
safeguards division, said governments across the region were
"increasingly ready to take on environmental challenges" such as
air and water pollution as well as forest degradation.

"Enforcement of pollution control laws is tightening, budgets
for environment protection are increasing, and judiciaries are
taking tougher stances," he added.

As consumers demand "greener and more environment friendly
products," Ahmad said more investments were needed in "wastewater
treatment, solid waste management, sustainable public transport,
as well as clean and renewable energy systems".

"While not all firms will be able to benefit from the expected
boom in environmental investments, most should have an
opportunity to gain from environmentally based product
differentiation if they recognize this and act," he added.

In the AEO report, the ADB noted that despite progress in
recent years, the region's campaign for environment protection
was still lacking a critical factor -- "a fully engaged private
sector".

It noted that while governments determine the rules, greater
corporate engagement and environmental responsibility was
necessary because companies are the ones that use natural
resources, make products and generate pollution.

"The key is for governments to give the private sector the
incentive and flexibility to find low-cost ways to meet agreed
environmental management objectives," Ahmad said.

The ADB said the growing demand for green investments and
products has created "new incentives for corporate attention to
the environment".

"New and greener products -- together with an anticipated
massive investment in environmental infrastructure throughout the
region -- show that environmental cleanup and protection offer
strong business and employment creation opportunities," the
report said.