The study, conducted by the Asia Society Policy Institute, an
international relations think tank based in New York, said the investment was
34% higher than the estimated cost of meeting the region's current net zero
emissions targets, excluding those contingent on foreign aid.
The study said the investment and climate commitment would boost the
region's economic output by 6.3% above the projected level for the 2030s,
create up to 36.5 million jobs by 2030, reduce household energy costs by $270
billion and improve the trade balance by $827 billion by cutting fossil fuel
imports.
However, average households would feel poorer due to higher consumer
prices from carbon tariffs and higher taxes to fund decarbonisation, the
study's authors said.
The study was based on a simulation model developed by economists at
Cambridge Econometrics and was commissioned by a high-level policy panel on
achieving net zero emissions in Asia-Pacific.
The region accounted for almost half of global carbon emissions in
2020.
Last month, U.N. Secretary-General Antonio Guterres called on
countries to "fast track" their commitments to net zero emissions,
setting 2040 for developed economies and 2050 for emerging economies as
deadlines. He said a "quantum leap" in climate action was needed to
limit global warming to 1.5 degrees Celsius by 2100 and prevent the worst
effects of climate change.
China and Indonesia have set targets to reach net zero emissions by
2060, while Thailand by 2065 and India by 2070. Most other countries in the
region have committed to achieving net zero emissions by 2050.
According to the study, of the total investment of $71 trillion, $53
trillion is related to current net zero emissions commitments and another $18
trillion is needed to accelerate the achievement of net zero emissions for the
entire region by 2050.
The study warned that delaying more ambitious climate measures would
result in higher costs for Asia-Pacific countries in the long run due to
"stranded assets" and higher carbon border taxes imposed by other
world economies.
Assets become "stranded" when they become economically
unviable due to stricter decarbonisation regulations, causing losses for
investors.
Carbon border taxes aim to create equal conditions for domestic and
imported products in terms of carbon emissions or carbon footprints. The first
such tax will be collected by the European Union from 2026.