Environment

This month, G20 leaders will endorse guiding principles for “quality infrastructure investment”, a priority for Japan. China’s support of these principles signals a willingness to address criticism of its Belt and Road Initiative. China and Japan, rivals in delivering high-speed rail, appear open to collaborating on projects that would meet high sustainability standards, writes Motoko Aizawa, President of the Observatory for Sustainable Infrastructure, who for 12 years headed the Policy and Standards Unit in the Environmental and Social Department of the International Finance Corporation (IFC).

Deforestation lets countries develop economically through commodity production, mining, and infrastructure-building, but makes many previously forested areas unsuitable for people and animals. The solution to this isn’t reforestation—it’s natural regeneration. Nature is our best ally and business partner.

Growing media and societal attention on environmental issues has prompted researchers to examine factors that contribute to making companies greener. New research has found that corporations with more women in their leadership teams are less likely to be accused of breaching environmental law.

Air pollution has countless victims—nearly nine out of ten people across the globe breathe polluted air, according to the World Health Organization. New research suggests that it even reaches the unborn, moving from a mother’s lungs to the placenta and fetus. Not only does it cause health and economic ill-effects, but it also impacts human cognition.

The global economy is currently organized in an environmentally damaging way: goods are produced, used, and discarded. The shared economy and the platform economy offer alternatives, but not solutions. The key to a more sustainable economy could lie in the combination of the two.

Many parts of Asia are affected by high levels of air pollution. The continent is home to some of the most polluted megacities in the world, including Beijing and Shanghai in China, and Delhi and Kolkata in India. While these places suffer all year round, several countries in Southeast Asia face a unique air pollution problem that is seasonal, but no less dire.

The worldwide debate over more environmentally friendly energy is replete with myths that slow down the uptake of renewables. In fact, renewable energy is increasingly competitive, and the transition is entirely feasible for ASEAN countries today.

Climate change means that drought is likely to scourge larger parts of the world, and more often, with serious impacts on agriculture and food supply. Drought episodes are generally tackled via ad hoc policy support measures. As the Australian case shows, such responses should be replaced with longer-term policy interventions across good and bad seasonal conditions.

Having built the world’s second-largest economy on the back of its mammoth manufacturing sector, China is now contending with not just environmental problems but also economic obstacles. Policies that make businesses greener can raise costs, and negative impacts on labor must be mitigated.

With environmental and societal concerns coming to the forefront of global discussion, adopting green finance is a matter of highest urgency. In Asia, the shift has already begun. Banks, funds, and companies are increasingly building systems for and investing in greener projects.