World Business

E Asia may stabilize gas emission by 2025: WB

(Xinhua)
Updated: 2010-04-20 11:03

JAKARTA: The six major energy-using countries of East Asia could stabilize their carbon emission by 2025 without compromising economic growth and the region needs over $80 billion annually to reach the goal, a World Bank report said on Monday.

The region needed to transform its energy sector towards energy efficiency and developing low-carbon technology, the reports said.

The report urges governments of the countries to take immediate action to transform their energy sectors towards much higher efficiency and more widespread use of clean energy

"Countries need to act now to transform the energy sector towards much higher energy efficiency and widespread deployment of low-carbon technologies. While many countries are already taking steps in this direction, accelerating the speed and scaling up efforts are needed to reach a sustainable energy path," Jim Adams, World Bank vice president for the East Asia and Pacific Region said in the statement.

Major investments in energy efficiency and a concerted switch to renewable sources of power in Indonesia, Malaysia, the Philippines, China, Thailand and Vietnam could simultaneously stabilize greenhouse gas emissions, increase energy security while improving local environments.

The report estimates that to reach a sustainable energy growth path, the region needs a net additional investment of $80 billion per year, a figure it describes as a "major hurdle".

A ten-fold rise in GDP in East Asia in the last three decades has led to a tripling of energy consumption which is expected to double again in the next two decades as the urban population increases by 50 percent and industrialization of the region continues, the report said.

The studies developed two scenarios in which development continues according to current government policies and an alternative, low carbon growth path. Under the alternative Sustainable Energy Development path, the report says renewable energy (including hydro, wind, biomass, geothermal, and solar) can meet a significant proportion of the region's power needs by 2030.

The Indonesian government has promised to cut carbon emission by 26 percent by 2020 and can expand it to 41 percent should there is international assistance.