11 November 2014: As part of its Green Growth Series, the Organisation for Economic Co-operation and Development (OECD) has released a report detailing the unsustainability of Southeast Asia’s current growth path. The report finds that climate change, fossil fuel-related pollution and an over-dependence on natural resources will hurt growth, prosperity and health in the long-run.

According to the report, titled ‘Towards Green Growth in Southeast Asia,’ the region derives 20% of its wealth from natural resources, which are being depleted at an increasing rate. By comparison, the figure in OECD countries is 2%. The authors find that the depletion is particularly severe in Brunei, Indonesia, Thailand and Viet Nam. The report further points out that, as fossil fuel usage contributes to increasing pollution, health costs may rise while life expectancy could drop.

In addition, the authors report that climate change-related conditions, such as flooding, poor agricultural yields and rising sea levels, could result in a 5% decrease in gross domestic product (GDP) by 2060. They point out that environmental problems, such as polluted air and water, depleted forests and topsoil, and the loss of mangroves that protect coasts from flooding, are symptoms of the region’s rapid growth. If the environmental damage is not mitigated, the authors caution, the costs associated with coastal flooding alone could reach US$6 billion annually by 2050.

The paper was presented on 11 November 2014 at the Low Emission Development Strategies Forum in Yogyakarta, Indonesia, by OECD Deputy Secretary-General Rintaro Tamaki, who stressed that the region’s current challenges are also an opportunity to modernize, think long-term with clear and predictable policies and invest in green infrastructure projects. The paper recommends integrating green growth planning with long-term economic growth strategies. [OECD Press Release] [Publication: Towards Green Growth in Southeast Asia]