Resetting Southeast Asia’s climate agenda

Shutting down the sun and the wind is much harder than blowing up a gas pipeline.

High inflation, rising interest rates, falling currencies, and volatile energy prices, together with an economic slowdown and post-pandemic budget woes, may increase pressure on the ASEAN+3 – the ten members of the Association of Southeast Asian Nations, together with China, Japan, and South Korea – to scale back efforts to mitigate climate risk. While this policy shift may make fiscal sense, it is a mistake that could have grave repercussions for the region and ultimately lead to slower economic growth and greater financial instability.