《SIIA：2023東盟數字化綠色化融合發展的機遇、挑戰與規劃研究報告（英文版）（44頁）.pdf》由會員分享，可在線閱讀，更多相關《SIIA：2023東盟數字化綠色化融合發展的機遇、挑戰與規劃研究報告（英文版）（44頁）.pdf（44頁珍藏版）》請在三個皮匠報告上搜索。

1、June 2023Building aDigital-Green ASEANGrowing intersections betweendigital growth and sustainability goalsAbout this ReportThis special report by the SIIA provides research and analysis on the dual emerging trends of digitalisation and sustainability in ASEAN.Through a lens of innovation,inclusion,i

2、nteroperability and sustainability,the SIIA conducted closed-door roundtables and interviews to garner insights from policymakers and the private sector between September 2022 to April 2023,which feeds into this report.With the lifting of travel restrictions,the SIIA also conducted policy research t

3、rips for this report to the ASEAN key economies of Indonesia,Thailand and Vietnam.The report launches at the ATxSG 2023,co-organised by Singapores Infocomm Media Development Authority(IMDA)and InformaTech.Authorship and AcknowledgmentsThis Special Report is authored by Jessica Wau,Deputy Director(AS

4、EAN Programme)and Janessa Kong,Senior Policy Research Analyst,Singapore Institute of International Affairs(SIIA).The report was directed by SIIA Chairman,Associate Professor Simon Tay and edited by Rohini Nambiar,Assistant Director,Policy Programmes&Media.Contributions were made by Andrew Wilfred,As

5、sistant Director,SIIA,Wong Zhi Xuan,and Cheney Yap.All views expressed in the report are those of the authors,unless otherwise credited.We would like to thank the following partners and organisations for sponsoring the report:The Infocomm Media Development Authority of Singapore(IMDA),Equinix,Huawei

6、,Microsoft and Tata Consultancy Services.We appreciate the insights sharing from our partners as well as other companies we engaged with for this report.A full list of the participating organisations for our research interviews and roundtables is listed in the appendix.The reports contents do not ne

7、cessarily reflect the views or stated policies of the above contributors.Table of ContentsForeword 1Executive Summary 21.Introduction 42.Digital-Green Growth:The Landscape for ASEAN Key Economies 6 2.1 The ASEAN Digital Roadmap 6 2.2 ASEANs Path to Carbon Neutrality 8 2.3 National Roadmaps for Key A

8、SEAN Economies 83.Data and Data Infrastructure 16 3.1 Data Centre Outlook in ASEAN 16 3.2 Greener Data Centres 17 3.3 Cross-border Data Flows 194.Powering Data&the Digital Economy:Seeking Clean Energy Solutions 21 4.1 Cross-border Energy Flows 21 4.2 Climate Technology 22 4.3 ASEAN Power Grid 23 4.4

9、 Transition and Green Finance 245.Sustainable Digital Trade 25 5.1 Digitalising Supply Chains 25 5.2 Tackling Scope 3 Emissions 276.Digital Solutions to Sustainability Challenges 29 6.1 Artificial Intelligence(AI)29 6.2 Green Fintech 297.Exploring an ASEAN-wide Framework for Digital Sustainability 3

10、1 7.1 Leveraging on ASEAN-led Mechanisms 31 7.2 Building Blocks for Digital Sustainability 328.Policy Recommendations 359.Conclusion 37Appendix:Participating Organisations 39ForewordThe Singapore Institute of International Affairs(SIIA)focuses on politics,economic policy and sustainability issues.We

11、 are Singapores oldest think tank and over the last ten years has been globally ranked as one of the leading institutions in ASEAN and the best independent think tank in Asia.We are aware of trends in technology but are not,as such,specialized in technology or the digital economy.During the pandemic

12、 however we had much cause to look more closely at these issues.We were not the only ones.As many have noted,during the national lockdowns and the border closures that marked the policy response to the pandemic,the digital economy accelerated.Digital strategies for companies,consumers and countries

13、went from the nice-to-have next thing to essential and ASAP.When the Singapore government and private sector formed a task force on how to emerge stronger from the crisis of the pandemic,digitalization was a key component of the efforts.The SIIA served as the think tank and learnt in this process,es

14、pecially emphasizing the need for efforts to link the digital economy across borders in our region,and beyond.Our New Horizons Report of 2021 said,“Singapores role as a living lab involves not only deploying new innovations in Singapore,but also testing solutions for ASEAN as a whole.”This Report de

15、velops our analyses and recommendations on the digital economy in our region.In the first report,Charting ASEANs Digital Future(2022),we surveyed the emerging policy challenges for the region such as the need for capacity building and regulatory certainty.In this report,one year on,we zoom in on key

16、 issues concerning digital-green growth including greener data centres,renewable energy grids and sustainable digital trade.From this work,we realize that while almost all agree on the potential of a regional and global digital economy,there are many differences on key issues that can be obstacles t

17、o greater cooperation.Even among ASEAN,while members have committed since 2015 to the ASEAN Economic Community,consensus and integration of the digital economy remains to be agreed and will require more time and work.That effort must take into account not only what the ten members do with each other

18、.Bilateral and plurilateral initiatives on the digital economy with other partners are also increasingly active and can be path finders for dialogue,understanding and cooperation.The dynamic pace of the sector is pushing things forward,but much remains to be done.It is our hope that this Report and

19、the SIIAs work on the digital economy will contribute to the efforts to grow the digital economy in ways that assist the economy,society and planet.Simon TayChairman SIIA1Executive SummaryThe opportunities to grow the digital economy in ASEAN are tremendous,especially in tandem with the broader econ

20、omic integration of the region.Yet so are the challenges.This is not only to harmonise policies among the different member states,recognising their different interests and concerns.This is also in respect of commitments to sustainability.This report highlights the growing intersections between digit

21、alisation and decarbonisation,and the implications for ASEANs economic growth and integration.The regional context,opportunities,challenges and recommendations are provided in this report.Opportunities&ChallengesIn ASEAN and around the world,there is an acceleration of digital adoption and connectiv

22、ity,further necessitated by the COVID-19 pandemic.Yet,digitalisation is at a crossroads for reasons including concerns about sustainability and climate action.The digital economy has a physical energy and carbon footprint,which will continue to grow with increasing demand for data and data infrastru

23、cture.Unless addressed,the acceleration of growth and economic activity from digitalisation will exact a heavy impact.The solutions must not however aim to restrain or reverse the drive towards digitalisation and de-digitalise.We instead require innovative and transformative ways to mitigate and red

24、uce carbon emissions.There are ways that the current digital revolution can be an enabler for countries and corporates to better meet sustainability goals.Three ways we consider in this Report will be through increased efficiencies,facilitating the measuring and reporting of climate-related standard

25、s,and providing new technologies to counter carbon emissions e.g.carbon capture,utilisation and storage.In looking at these approaches,we consider our region closely and optimistically.ASEAN has the potential to pioneer a digital-green ecosystem instead of approaching digital and sustainable growth

26、as disparate sectors in“silos”.The current and emerging availability of technologies also provides opportunities to create a foundation for new structure and strategies to be put in place can serve to drive a“digital-green”transition with potentially critical contributions to the broader economy and

27、 societies across the region.Our Report focuses on the landscape for sustainable digital growth in ASEAN and what types of regional cooperation can be forged to help enable and drive forward this digital-green transition.The economies of Indonesia,Singapore,Thailand and Vietnam in particular,have ma

28、de strides for the next steps for industry and how we live and work often referred to as“4IR”.They exemplify the ambition and potential for advancements in digital and green policies across the region.But such transitions will not be made automatically or easily.Governments in ASEAN will need to map

29、 out economic growth plans and work with people,the private sector and across borders,towards creating ecosystem for digital transformation and green growth.Recognising the convergence of digitalisation and sustainability,our Report makes a number of key recommendations that can help ASEAN move forw

30、ard towards a“digital-green”future.2KEY RECOMMENDATIONS TO BUILD A DIGITAL GREEN ASEANDigital Economy Actors:1.End-to-end supply chain digitalisation:Companies should continue to fully digitalise their supply chains to increase the efficiency of material management as well as onboard their main supp

31、liers onto complementary systems to measure and track their Scope 3 emissions.2.Greening data centres:Mitigating the carbon footprint of data centres must be considered.Data centre providers have explored utilising tech innovations to mitigate their environmental impact,which must be complemented by

32、 government efforts to facilitate renewable energy trade and setting interoperable standards to incentivise efforts towards greener data centres.Digital Policymakers:3.Enable cross border data flows:Enabling cross-border data flows with appropriate data protection safeguards for greater efficiency o

33、f online transactions and leveraging global platforms that facilitate interoperability.4.Harmonise standards in Digital and Green Economy Agreements:Digital and Green Economy Agreements(DEAs and GEAs)provides opportunities to develop norms and standards for the digital and green economies.5.Incorpor

34、ate the digital-green agenda into existing ASEAN mechanisms:ASEAN first needs to ensure that sufficient rhetoric and discussion around the digital-green nexus is present in current ASEAN mechanisms.This can further be developed in coming years with input from the private sector and other stakeholder

35、s for feedback,even as ASEAN looks towards developing its Post-2025 Community Vision towards 2045.Wider Economy Changes:6.Connect ASEANs carbon markets:Interconnectivity across carbon market platforms in ASEAN would be needed to support the trade of carbon credits.Harmonizing standards will allow pu

36、rchasers to confidently buy credits for their businesses with some level of certainty to the quality,quantity,and reliability of the credit.7.Develop a regional,renewable power grid:Connecting electricity grids across Southeast Asia will allow the region to leverage on AMS innate strengths and accel

37、erate the wider energy transition.This will enable the growth of data centres and other essential digital infrastructure,as well as help the region achieve its net-zero goals.8.Foster innovation:Regulatory sandboxes will be crucial to support the development and innovation of technology tools and ne

38、w virtual systems,and must be assisted by funding support.9.Bridge the skills gap:Demand for talent will continue to grow in tandem with the digital and green economies and there is a need to ensure that a pipeline for talent is established.Upskilling workers and improving the quality of education s

39、hould be a priority for AMS to ensure that everyone can participate in the digital and green economies.10.Promote digital-green norms:Promoting a framework of thinking about the digital and green economies will require efforts from both the public and private sector.Policymakers can help create rhet

40、oric and regulation around reporting standards,while tech platforms can offer sustainable options by default,nudging both business and consumers towards greener habits.This is a shortened summary of key recommendations identified by the SIIA to build a“Digital-Green”ASEAN.An expanded version with mo

41、re context is found in the last chapter of the report.31.IntroductionWhy ASEAN?The Association of Southeast Asia Nations(ASEAN)is projected to become the worlds fourth-largest economy by 20301.ASEAN has strong growth prospects supported by favourable demographics with a relatively young median age o

42、f 30.2 years2 and a growing urbanised middle class.While diverse,ASEAN member states(AMS)are increasingly integrated,with the ASEAN Economic Community(AEC)making the bloc an attractive investment destination and a key production base in the global economy.The emergence of digitalisation further enha

43、nces ASEANs growth prospects.The e-Conomy SEA report considers six countries from Southeast Asia and estimates the regions digital economy could reach$1 trillion by 2030.3 Yet,there are also immense challenges for ASEAN economic integration and stability.The global COVID-19 pandemic has receded and

44、lockdowns and border obstacles have eased,but new factors have arisen to create a“poly-crisis”.These include the war in Ukraine,a tense Sino-US relationship,supply chain disruptions and increasing impacts from climate change.Why Digital-Green?Climate change is neither distant nor abstract.Increasing

45、 calls to take immediate action drive demand to move on sustainability and to decarbonise our economy and society.These demands have a complex interplay with the trends in digitalisation.How do they overlap?Firstly,both trends have emerged as contemporaries in time.Concerns about climate and the gro

46、wth of the digital economy have grown in parallel among corporations and consumers,governments,and citizens.The internet economy has boomed,and mobile phones have become ubiquitous,while at the same time more nations have begun to recognise that the earths temperature is increasing alarmingly.4The t

47、wo trends again intertwined during the pandemic.A world that was in lockdown for the majority of 2020-2021 required digital connectivity for work,school,and social cohesion,and for a brief spell,there was some environmental dividend with less pollution and less carbon.Yet,as pandemic concerns eased

48、and activity restarted,carbon emissions have not only returned but jumped.A second commonality is that both are cross-cutting issues,rather than isolated silos.The“digital economy”does not only affect tech companies but,in combination with other aspects of technology,challenges many aspects of more

49、traditional“brick-and-mortar”businesses e.g.,shopping malls have bankable digital services or purely transitioned online to e-commerce.To get to a“green economy”,there are many changes that are needed in economic and social activity,especially linked to the sources of power for factories,households,

50、transportation,and supply chains.1OECD.EconomicOutlookforSoutheastAsia,ChinaandIndia2018:FosteringGrowththroughDigitalisation.EconomicOutlookforSoutheastAsia,China and India.OECD,2018.https:/doi.org/10.1787/9789264286184-en.2JamesFox,“IndustriestoWatchOutforGrowthinSoutheastAsiain2023,”ASEANBriefing

51、fromDezanShira&Associates,January17,2023,https:/ interplay between digitalisation and sustainability is inevitable.Corporates are developing strategies of“Greening Tech”,by mitigating the environmental impact of technology,and“Tech for Environmental Sustainability”,by using technological innovations

52、 to improve sustainability practices.With both cross-cutting issues embedded in the modern economy,current regulatory frameworks around related policies should be updated.This includes the need to address related factors such as financing,security and cooperation.How Can We Build a Digital-Green ASE

53、AN?This report outlines the growth of digitalisation in ASEAN and highlights the growing intersections between this trend and the challenges for sustainability and decarbonisation.It attempts to answer the question of how we can build a digital-green ASEAN for strong,sustainable,and inclusive growth

54、.We begin by examining the landscape for digital and green growth in ASEAN as an organisation.We then survey digital and sustainable policy strategies across selected key ASEAN economies:Indonesia,Singapore,Thailand and Vietnam.Second,the report considers issues relating to data,which many consider

55、the lifeblood of the digital economy.We examine the infrastructure needed to support its growth,including energy grids that need to be more sustainable.Third,the report explores supply chains where digital tools and sustainability practices naturally aggregate,especially for businesses that seek to

56、tackle not only their own carbon footprint but their entire value chain what is termed,“Scope 3 emissions”.Lastly,the report addresses the challenges and opportunities for a digital-green ASEAN,with recommendations on how regional cross-border collaboration can help governments and businesses achiev

57、e policy and strategic goals.These must not only be reconciled but can generate synergy,to drive forward sustainable,inclusive,and strong growth for ASEAN even in this period of global challenges and uncertainty.Figure 1:Growing intersections:Digitalisation and environmental sustainabilitySmart Gree

58、n transportation Smart Green factoriesSmart Green buildings Sustainable e-commerce-Digital-sustainable trade/supply chains Digital public services/e-government access52.Digital-Green Growth:The Landscape for ASEAN Key EconomiesDigitalisation and decarbonisation are key policy areas that governments

59、are keen to develop.The key economies of ASEAN have begun mapping out their own national digital roadmaps as well as announced their climate targets.While economic growth remains a priority for many AMS,trends in digitalisation and sustainability will shape the type of growth achieved.The region wil

60、l need investment in infrastructure,capacity building for green and digital talent,and the involvement of micro,small and medium-sized enterprises(MSMEs),that form the backbone of ASEANs economy.2.1 The ASEAN Digital RoadmapSince the signing of the e-ASEAN Framework Agreement in 2000,ASEAN leaders h

61、ave attempted to catalyse digital growth through various frameworks.This includes the ASEAN Digital Integration Framework Action Plan(DIFAP)2019-2025,the adoption of the ASEAN Digital Masterplan 2025 and the ASEAN E-commerce Agreement.While COVID-19 spurred countries towards digital adoption,it also

62、 revealed gaps within and between AMS.Thus,the ASEAN Comprehensive Recovery Framework(ACRF)and Bandar Seri Begawan Roadmap were subsequently developed to highlight the need for inclusive digital transformation and identify existing initiatives to aid with the three phases of recovery,acceleration,an

63、d transformation.The current overarching framework guiding AMS on their path towards digitalisation is the ASEAN Digital Masterplan(ADM)2025.The outcome is a society where everyone is able to use digital services to enhance their daily lives,while businesses and public bodies can use digital service

64、s to become more productive and accessible to citizens.In addition,digital services will allow for fast frictionless trade among AMS,accelerating businesses to expand across the ASEAN region.Achieving this vision requires AMS governments and regulators to ensure high-quality and ubiquitous connectiv

65、ity throughout ASEAN,and develop services which are safe and relevant to the needs of end users,while removing barriers that hinder access to digital services.AMS have actively prioritised digital transformation and adopted digital goals either in part or whole in their respective national-level fra

66、meworks.However,current digital roadmaps lack a green chapter or any elaboration on how digital tools might be leveraged to achieve sustainability goals.6Figure 2:ASEANs timeline of digital&sustainability initiatives2016-2025ASCC Blueprint 2025Priority areas include response to climate change,sustai

67、nable cities,sustainable consumption and production2021Smart Green ASEAN Cities programmeGreen and smart solutions of high urbanisation through digitalisation and use of technologiesFramework for Circular Economy for the ASEAN Economic CommunityGuide ASEAN in achieving long-term goals of resilient e

68、conomy,resource efficiency,and sustainable,inclusive growthASEAN Taxonomy for Sustainable FinanceIntroducing a common language across ASEAN for financing sustainable economic activities2023-2025ASEAN Digital Economy Framework Agreement(DEFA)Aims to create a seamless digital trade ecosystem through s

69、tandardization of rules and functions2021 onwardsBandar Seri Begawan RoadmapHighlights key actions from existing relevant ASEAN initiatives with immediate and long-term benefits for the regions competitiveness2021-2025ASEAN Cybersecurity Cooperation Strategy Create a safer and more secure cyberspace

70、 through establishment of open,secure,and stable rules-based multilateral orderASEAN Digital Masterplan 2025Lays out timeline and plans for accelerated digitalisation efforts through digital services and infrastructure.Includes cybersecurity cooperation strategy2019-2025ASEAN Digital Integration Fra

71、mework and its Action PlanProposes 5 policy areas that can help ASEAN overcome the barriers to digital integrationASEAN Framework on Digital Data Governance Sets out the strategic priorities,principles and initiatives in member states policy and regulatory approaches towards digital data governance

72、in the digital economy20182018-2021ASEAN Agreement on Electronic CommerceSigned in 2018 and developed a Work Plan to facilitate the implementation in 2021DigitalSustainability2016202572.2 ASEANs Path to Carbon NeutralityThe ASEAN region is rich in natural resources and is the centre of the worlds ma

73、rine biodiversity.5 However,the region is vulnerable to climate change-related impacts such as floods,droughts,and rising temperatures.According to the Intergovernmental Panel on Climate Change(IPCC),“South-east Asia will witness increased losses in coastal settlements and infrastructure due to floo

74、ding caused by unavoidable sea-level rise”.6While AMS are at risk,its economies are growing rapidly and demanding large amounts of energy.The ASEAN power sectors CO2 emissions will continue to grow and peak at 805 million metric tons(MMt)in 2029.7 While most energy demand comes from the four AMS of

75、Indonesia,Vietnam,Thailand and Malaysia,AMS must collectively address increasing energy use as economies have grown 6 per cent8 annually in the last two decades.ASEAN accounts for about 5 per cent of global energy demand with per capita emissions at 1 per cent of the global total in 2020.9 The ASEAN

76、 Plan of Action for Energy Cooperation(APAEC)is in its second phase:2021 2025,and will continue to evolve as new technology and priorities emerge.AMS have also committed to net-zero goals.Nine out of ten governments have pledged to achieve net zero targets by 2050.Going forward,the ASEAN Secretariat

77、(ASEC)is also working on an ASEAN Strategy for Carbon Neutrality,to develop a net-zero regional strategy.A regional framework for a cross-border strategy has the intrinsic benefit of leveraging on the innate strengths of each AMS while strengthening the ties that bind them.2.3 National Roadmaps for

78、Key ASEAN EconomiesIn addressing how AMS can grow both digitally and sustainably,the SIIA has identified the four key economies of Indonesia,Singapore,Thailand,and Vietnam as starting points for our research.Singapore is relatively advanced in its digital economy and has taken the lead on DEAs,and T

79、hailand,Indonesia and Vietnam are strong manufacturing hubs that are relatively advanced in digital readiness and infrastructure and have shown strong political will to grow the digital economy.This section explores different digital and green roadmaps adopted by key AMS to establish a digital-green

80、 ecosystem.5ASEAN,“Environment-Overview,”AssociationofSoutheastAsianNations,n.d.,https:/asean.org/our-communities/asean-socio-cultural-community/environment/.6CherylTan,“South-EastAsiaamongRegionsHardestHitbyClimateChange,MustPrioritiseAdaptation:IPCC,”TheStraitsTimes,March7,2022,https:/ for Whole-o

81、f-Government ApproachMultiple ministries and initiatives involved given that the digital economy is a cross-cutting issue,need for a coordination mechanism with clear,measurable objectives(2)Lack of Digital Talent and SkillsDigital readiness has improved,but many are still unequipped with the releva

82、nt digital skills.Countries are actively developing human resources to meet the future demands of the digital economy(3)Cultivating the Right Policy Environment(i)Regulation around cybersecurity and data protection need to foster trusted cross-border data flows within ASEAN(ii)Encouraging investment

83、,innovation,research,and development without overregulating emerging technologies(4)Inclusive Growth Supporting Digital Transformation for MSMEsThe main barriers inhibiting digital transformation for SMEs include the(i)lack of digital literacy,(ii)perception of increased and unnecessary cost,and(iii

84、)lack of guidance and skills to execute digital transformationTable 2:Top challenges for the growth of the digital economy in ASEANSource:Authors research from stakeholder interviews10 IEA-EDGARCO2,acomponentoftheEDGAR(EmissionsDatabaseforGlobalAtmosphericResearch)CommunityGHGdatabaseversion7.0(2022

85、)includingorbasedondatafromIEA(2021)GreenhouseGasEmissionsfromEnergy,www.iea.org/data-and-statistics,asmodifiedbytheJointResearchCentre.https:/edgar.jrc.ec.europa.eu/report_2022?vis=pop#emissions_table.Country Net-zero targetsGlobal share of emissions Per capita emissions(tonnes)Brunei20500.02%16.05

86、Cambodia20500.04%1.0Indonesia20601.59%2.19Laos20500.05%2.83Malaysia 20500.66%7.56Myanmar20500.11%0.72PhilippinesNo target set0.39%1.33Singapore20500.15%9.71Thailand20650.71%3.88Vietnam 20500.85%3.24Table 1:AMS carbon emissions contribution to the world(2021)Source:EmissionsDatabaseforGlobalAtmospher

87、icResearch(EDGAR)109IndonesiaAs Southeast Asias largest economy,Indonesias 270 million population offers an attractive digital consumer market,especially as there is high mobile penetration.However,the country currently lacks a mature digital workforce.Policymakers predict that the country needs 9 m

88、illion digital talents by 2030.11 Indonesias Ministry of Communication and Informatics(KOMINFO)is tackling this issue under the Indonesia Vision 2045 to create a“National Digital Literacy Movement”to improve the digital capabilities of Indonesians.The Ministry of Industry is also partnering with MNC

89、s to upskill personnel,forming capability centres to train in data analytics,robotics,IoT,and cloud computing to support the digital ecosystem.Indonesia is investing in building large national data centres to house government data in Bekasi,Batam,Nusantara and Labuan Bajo.This would propel the One D

90、ata Indonesia plan developed by the Ministry of Planning and National Development(BAPPENAS)to accelerate the digitisation of public services.However,businesses still face data localisation requirements.According to Government Regulation(GR)No.71 of 2019 on the Provision of Electronic System and Tran

91、saction,Indonesia has relaxed restrictions for data in the private domain and only places limits on government data.12 However,there is an exception for the Banking,Security,Financing and Insurance(BFSI)industry,where data still must be localised.11 Tempo.co,“IndonesiaNeeds9MillionDigitalTalents,Min

92、isterAirlanggaSays,”Tempo(TEMPO.CO,April6,2023),https:/en.tempo.co/read/1711800/indonesia-needs-9-million-digital-talents-minister-airlangga-says#:text=Indonesia%20Needs%209%20Million%20Digital%20Talents%2C%20Minister%20Airlangga%20Says,-Translator&text=TEMPO.CO%2C%20Jakarta%20%2D%20Coordinating,US%

93、24146%20billion%20in%202025.12 DanielPardede,“Indonesia:NewRegulationonElectronicSystemsandTransactions,”GlobalComplianceNews,November7,2019,https:/ OfficeofAssistanttoDeputyCabinetSecretaryforStateDocuments&Translation,“PresidentJokowiHighlightsStrategiestoKick-StartGreenEconomy,”CabinetSecretariat

94、oftheRepublicofIndonesia,January20,2022,https:/setkab.go.id/en/president-jokowi-highlights-strategies-to-kick-start-green-economy/.“Our hope is that Indonesias economic transformation would really take place toward a green economy.”Indonesia President Jokowi(February 2023,Ground-breaking of hydropow

95、er plant)As the G20 chair in 2022,President Jokowi emphasised that a green economy is key to Indonesias future.The country will leverage on its resources,such as nickel,to produce lithium batteries as part of Electric Vehicle(EV)market.Indonesia is also keen to become a global market leader in carbo

96、n trading schemes.13 Indonesias“2060 or sooner”net zero target was adopted in 2021 and included in its Long-Term Strategy for Low Carbon and Climate Resilience(LTS-LCCR)under the Paris Agreement.Stronger 2030 emission reduction targets were adopted in its Enhanced NDC under the Paris Agreement in 20

97、22.10Whats next for Indonesia?The industries of e-commerce,transportation,health and edutech are likely to be drivers for the next wave of digital transformation in Indonesia.Aside from working with the ASEAN Secretariat(ASEC)to develop the Digital Economy Framework Agreement(DEFA),Indonesia is also

98、 working on developing a whole-of-government approach to the digital economy.The Coordinating Ministry of Economic Affairs(Kementerian Koordinator Bidang Perekonomian)is leading a National Strategy for Digital Economy 2030 which will outline the main priorities for Indonesias digital economy moving

99、forward.It will build on the findings from the DEFA study,and data collected from the relevant ministries involved.SingaporePositioning digitalisation at the forefront of growth and innovation,Singapore has taken the global lead in integrating technology into the fabric of its society.The countrys“S

100、mart Nation”initiative was launched in 2014 to leverage digital tools to improve peoples lives and increase productivity across the economy.Smart Nation is a whole-of-government initiative and encompasses a comprehensive network of state and non-state actors that aims to effect widespread digital tr

101、ansformation across Singapore.One integral development has been mainstreaming cashless transactions and e-payments,evidenced by universal tools like PayNow,which enables immediate peer-to-peer transfers,and the Singapore Quick Response Code(SGQR),a unique QR code for merchants to accept payments fro

102、m different service providers.With the ubiquity of digital payments,digital financial services growth will be further propelled by the“digitalisation of investments and lending via digibanks and fintechs”.14 Other initiatives include autonomous vehicles,a National Digital Identity(NDI),digitalisatio

103、n of the healthcare system,consolidation of digital government services,and upskilling professionals in AI technology.“The pandemic has accelerated digitalisation in many of our countries.It is a driver for future growth and for the achievement of our Sustainable Development Goals.There are many opp

104、ortunities for win-win international cooperation in this field.”Singapore Prime Minister Lee Hsien Loong(November 2022,G20 Bali Summit)Additionally,Singapore has been championing increased cross-border collaboration in ASEAN,having signed Memorandum of Understandings(MOU)with Malaysia,Vietnam,Thaila

105、nd,and Laos respectively on the digital and green economies.Collaboration is expected in areas like personal data protection,cyber security,digital connectivity,and renewable energy.Singapore views digital and green growth as a priority for ASEAN and hopes to leverage subsequent DEAs and GEAs to dev

106、elop norms14 Google,Temasek,andBain&Company,“E-ConomySEA2022,”2022,https:/ the Intersections between Digital and SustainabilityThe Infocomm Media Development Authority(IMDA)has made strides in exploring the intersections between Digital and Sustainability.Under the GreenGov.SG movement15,it has ende

107、avoured to estimate its own carbon profile,which has been published in its 2022 annual report.This process has enabled them to identify the challenges faced by companies in the tracking,monitoring,and reporting of Scope 3 emissions.IMDA is working to support companies to use digital technologies to

108、improve their carbon management.15 MinistryofSustainabilityandtheEnvironment,“GreenGov.SGMovementSetsNewMeasuresandTargetstoCutCarbonEmissionsacrossPublicSector,”July12,2021,https:/www.mse.gov.sg/resource-room/category/2021-07-12-press-release-on-greengov.16 Theplanincludesfivekeyprogrammesencapsula

109、tingfocusareassuchasgreeninfrastructure,energyusageandtransition,sustainableliving,greeneconomy,anddevelopinglong-termresiliency.17 NationalClimateChangeSecretariat(NCCS),“AddendumtoSingaporesLong-TermLow-EmissionsDevelopmentStrategy,”2022,https:/www.nccs.gov.sg/files/docs/default-source/publication

110、s/nccsleds_addendum_2022.pdf.18 BangkokPost,“NBTCSetsoutPlantoBoostBroadband,”BangkokPost,October28,2022,https:/ MinistryofDigitalEconomyandSociety,“VillageBroadbandInternetProject(NetPracharat),”2022,https:/www.unescap.org/sites/default/files/Village%20Broadband%20Internet%20Project%20%28Net%20Prac

111、harat%29%2C%20MDES%20Thailand.pdf.20 RoyalThaiEmbassy,WashingtonD.C.,“ThailandWillRaiseIts2030Net-ZeroTarget,”thaiembdc.org,accessedMay10,2023,https:/thaiembdc.org/2022/09/08/thailand-will-raise-its-2030-net-zero-target/.21 OfficeofNaturalResourcesandEnvironmentalPolicyandPlanning,“Long-TermLowGreen

112、houseGasEmissionDevelopmentStrategy,”November2022,https:/unfccc.int/sites/default/files/resource/Thailand%20LT-LEDS%20%28Revised%20Version%29_08Nov2022.pdf.and standards for these economies.On sustainability,the Green Plan 203016 is a ten-year action plan that outlines targets to achieve Singapores

113、sustainable development agenda and strengthen its commitment to the Paris Agreement.The country recently raised its national climate target to achieve net zero emissions by 2050 and reduce emissions to around 60 MtCO2e in 2030 as part of their Long-Term Low-Emissions Development Strategy(LEDS)and 20

114、30 Nationally Determined Contribution(NDC).17ThailandThailand has made both the digital and green economy its main priorities in recent years.Captured in its 2021 Bio-Circular-Green(BCG)model,its national level framework which was presented at the Asia Pacific Economic Cooperation(APEC)2022,the digi

115、tal and green economies have been identified as key levers for pandemic recovery and sustainable economic growth.Since then,it has made significant progress in digital infrastructure and regulation.This includes expanding the quality and coverage of fixed mobile broadband18 19 and exploring 5G capab

116、ilities,as well as the launch of the National Cyber Security Agency(NCSA)in 2021 and fully adopting the Personal Data Protection Act(PDPA)in 2022.The Digital Economy and Society Development Plan(DESP)is currently being revised,and the Office of the National Digital Economy and Society Commission(OND

117、E)is in the process of developing new goals for the next five and ten years.The future phases would mainly focus on geographical-based development,with projects like the Smart City Initiative and the Eastern Economic Corridor(EEC).The revised plan will also consider recent trends and pressing societ

118、al issues such as climate change and an ageing society.This revision is timely as Thailand has accelerated its plans to become carbon neutral by 2050,with an intermediate goal of reducing emissions by 40 per cent within 203020,which it announced in mid-2022.Its Long-Term Low GHG Emission Development

119、 Strategy in 2022(LT-LEDS)21 outlines key mitigation efforts,detailing policies,priorities,and measures which must be taken.This will complement efforts undertaken in 1222 TheOfficeofNaturalResourcesandEnvironmentalPolicyandPlanning,MinistryofNaturalResourcesandEnvironment,“ClimateChangeMasterPlan20

120、15-2050,”July2015,https:/climate.onep.go.th/wp-content/uploads/2019/07/CCMP_english.pdf.23 Bloomberg,“VietnamWantsDigitalEconomyEqualto20%ofGDPinFourYears,”B,August12,2021,https:/ MinistryofInformationandCommunications,“VietnamApprovesNationalPlanningfor2021-2030,”MinistryofInformationandCommunicati

121、onsoftheSocialistRepublicofVietnam,October27,2022,https:/english.mic.gov.vn/Pages/TinTuc/155524/Vietnam-approves-national-planning-for-2021-2030.html.25 ConnectonTech,“Vietnam:NewDraftTelecomsLawRegulatingOTTCommunication,DataCenter,andCloudComputingServices,”ConnectOnTech,February7,2023,https:/ Pri

122、cewaterhouseCoopers,“Decree53GuidingCybersecurityLaw,”September8,2022,https:/ Channels for Public-Private Partnerships(PPP)Thailand has consistently involved the private sector in its process of digital transformation.This includes collaborations to build capabilities in digital talent and innovatio

123、n with tech MNCs,as well as local conglomerates.Moving forward,there is an opportunity to move past the existing project-by-project basis of collaboration and establish formal channels of consultation to ensure an alignment of goals in the long run.This will be especially useful in the case of geogr

124、aphical-focused initiatives,where the private sector has raised concerns about the viability of executing some of these large-scale projects within projected timelines.The National Climate Change Master Plan(CCMP)developed in 2015,which was designed to help Thailand achieve sustainable growth and de

125、velop resilience by 205022.The 2021-2027 BCG Action Plan will be key in identifying synergies between existing sustainability approaches with other economic growth frameworks.It remains to be seen how the BCG model will influence the priorities identified in Phase 3 and 4 of the DESP.This is especia

126、lly given the focus on S-curve industries and Special Economic Zones(SEZs),which are likely to be carbon-intensive endeavours.VietnamCOVID-19 was an inflection point for the exponential growth of Vietnams digital economy,and has since become a priority for the country moving forward.While Vietnam is

127、 well-positioned to reap the benefits of digital transformation,the government is still defining which aspects of the digital economy to prioritise.The National Digital Transformation Programme by 2025 with a vision towards 2030 aims to accelerate digital transformation through increasing digital li

128、teracy,enterprise strategies,and incentives to encourage a whole-of-government approach to digitalisation.This is in line with the goal set by the government to have the digital economy contribute 30 per cent of GDP by 203023,with specific targets for each province24.The National Committee on Digita

129、l Transformation was established in 2021 to coordinate between the relevant ministries involved,and is currently chaired by Prime Minister Pham Minh Chinh.The increased focus on digital regulation over the last five years reflects the challenge faced by the government in regulating the digital econo

130、my.Concerns primarily centre around content regulation(rise of misinformation,internet scams,political speech etc.)and cybersecurity,alongside encouraging fair competition between MNCs and MSMEs,and implementing corporate taxes.This has resulted in a series of decrees which contain data localisation

131、 clauses and targets digital service providers the latest of which seeks to regulate data centre,cloud computing,and over-the-top(OTT)services25.Some of these requirements include the need for a representative office located in Vietnam and data to be stored locally26 to facilitate the enforcement an

132、d implementation of these decrees.Another key challenge relates to digital inclusion.There is a need to bridge the gap between urban and rural areas in the areas of digital infrastructure,digital adoption,and human resource development.1327 McKinsey,“ChartingaPathforVietnamtoAchieveItsNet-ZeroGoals,

133、”October14,2022,https:/ GlobalComplianceNews,“Vietnam:KeyHighlightsofNewDraftofNationalPowerDevelopmentPlan(DraftPDP8),”GlobalComplianceNews,March13,2021,https:/ with the trend of green transformation,digital transformation is an inevitable trend that is evolving very strongly,widely and daily.”Viet

134、nam Prime Minister Pham Minh Chinh(October 2022 celebrating National DigitalTransformation Day)On sustainability,Vietnam has announced a 43.5 per cent emission-reduction target by 2030 as laid out in its National Strategy on Climate Change,including sector-specific targets for 2030 and 205027.The la

135、test draft of the Power Development Plan 8(PDP8)also aims to have renewable energy comprise 53 per cent of total capacity by 2045 and phase out new coal power projects entirely by 203028.As Vietnams coal power plants are relatively new,the drawdown will take time and require significant transition f

136、inancing.Enabling Cross-border Data FlowsFacilitating seamless cross-border trade will be imperative to capitalise on the immense potential of Vietnams booming e-commerce sector.A lack of clarity regarding regulation or application processes would result in uncertainty and increased cost for stakeho

137、lders involved.The drafting of a replacement law on E-transactions in 2022 which contains more detailed guidelines reflects greater commitment to promoting digital trade.However,data governance continues to be a sensitive issue,and the increase in data localisation clauses in recent decrees has been

138、 a cause of concern for businesses.Thus,there is need to enable trusted cross-border data flows through compliance with regional frameworks and standards.14IndonesiaSingaporeThailandVietnamKey Sustainability FrameworksNational Medium-Term Development Plan(RPJMN)for 2020-2024 on Low Carbon Developmen

139、t29Green Plan 203030Bio-Circular-Green(BCG)Model31National Climate Change Master Plan(CCMP)2015 205032Long-Term Low GHG Emission Development Strategy(LT-LEDS)33Decree 06:Reduction targets for each ministry and relevant areas34Decision No:896/QD-TTg:National Strategy on Climate Change35Power Developm

140、ent Plan 8(PDP8)36National Digital FrameworksNational Strategy for the Digital Economy(2023-2030)37Making Indonesia 4.038Smart Nation-Digital Government,Society,and Economy39Digital Economy and Society Development Plan(DESP)40National Digital Transformation Program41Table 3:Snapshot of digital&susta

141、inability plans in Singapore,Thailand,Indonesia,Vietnam29 RepublicofIndonesia,“NationalMedium-TermDevelopmentPlan(RPJMN)for2020-2024,”2020,https:/perpustakaan.bappenas.go.id/e-library/file_upload/koleksi/migrasi-data-publikasi/file/RP_RKP/Narasi-RPJMN-2020-2024-versi-Bahasa-Inggris.pdf.30 SGGreenPla

142、n,“SingaporeGreenPlan2030,”www.greenplan.gov.sg,2022,https:/www.greenplan.gov.sg/.31 NationalScienceandTechnologyDevelopmentAgency,“Bio-CircularGreen-Economy2021-2027ActionPlan,”2021,https:/www.nstda.or.th/en/images/pdf/bcg_action_plan.pdf.32 TheOfficeofNaturalResourcesandEnvironmentalPolicyandPlann

143、ing,MinistryofNaturalResourcesandEnvironment,“ClimateChangeMasterPlan2015-2050,”July2015,https:/climate.onep.go.th/wp-content/uploads/2019/07/CCMP_english.pdf.33 Thailand,“Mid-Century,Long-TermLowGreenhouseGasEmissionDevelopmentStrategy,”October2021,https:/unfccc.int/sites/default/files/resource/Tha

144、iland_LTS1.pdf.34 SocialistRepublicofVietnam,“DecreeonMitigationofGreenHouseGas(GHG)EmissionsandProtectionofOzoneLayer”(2022),https:/thuvienphapluat.vn/van-ban/EN/Tai-nguyen-Moi-truong/Decree-06-2022-ND-CP-mitigation-of-green-house-gas-emissions/503148/tieng-anh.aspx.35 SocialistRepublicofVietnam,“D

145、ecisionApprovingtheNationalStrategyforClimateChangeuntil2050”(2022),https:/thuvienphapluat.vn/van-ban/EN/Tai-nguyen-Moi-truong/Decision-896-QD-TTg-2022-approving-the-National-strategy-for-climate-change-until-2050/525126/tieng-anh.aspx.36 SocialistRepublicofVietnam,“DecisionApprovingtheNationalPower

146、DevelopmentPlaninthe2021-2030Period,withVisionto2045”(2021),https:/vepg.vn/wp-content/uploads/2021/09/5.9.2021-Draft-PDP8_En.pdf.37 KementerianKoordinatorBidangPerekonomian,“KegiatanKoordinasiPercepatanStrategiNasionalPengembanganEkonomiDigital2023-2030,”2023,https:/rekrutmentp.ekon.go.id/assets/dow

147、nloads/2023/G1/20230125-kak-tenaga-pendukung-administrasi-akuntansi.pdf.38 MinistryofIndustry,“IndonesiasFourthIndustrialRevolution,”July2018,https:/www.kemenperin.go.id/download/19347.39 SmartNationSingapore,“AboutSNDGG,”www.smartnation.gov.sg,2023,https:/www.smartnation.gov.sg/about-smart-nation/s

148、ndgg/.40 InternationalTelecommunicationsUnion,“ThailandDigitalEconomyandSocietyDevelopmentPlan,”April2016,https:/www.itu.int/en/ITU-D/Regional-Presence/AsiaPacific/Documents/Events/2016/Apr-Digital2016/S2_Present_Pansak_Siriruchatapong.pdf.41 BNiv(MinistryofHomeAffairs),“ThTngChnhPhPhDuytChngTrnhChu

149、yniSQucGianNm2025,nhHngnNm2030,”moha.gov.vn,May6,2020,https:/moha.gov.vn/kstthc/baocao/thu-tuong-chinh-phu-phe-duyet-chuong-trinh-chuyen-doi-so-quoc-gia-den-nam-2025-dinh-huong-den-nam-2030-44452.html.153.Data and Data InfrastructureData has been deemed as the lifeblood of digital transformation.Gov

150、ernments and businesses harnessing data in large-scale applications need dedicated computing infrastructure and integrated ecosystems.Functioning as centralised facilities that accommodate computing equipment such as servers,networked computers and storage equipment,data centres have become the foun

151、dation of the global Information and Communications Technology(ICT)ecosystem.1.Data centres are the backbone infrastructure for the digital services we use every day.2.Regulatory standards and policy frameworks are needed to establish greener data centres.3.Cross border data flows are important in f

152、acilitating the expansion of data centres in ASEAN.The following section studies the prospects for data centre markets in ASEAN,the intersection between data centres and sustainability,and data localisation regulations across jurisdictions.3.1 Data Centre Outlook in ASEANDemand from businesses and g

153、overnments across ASEAN is propelling the heated race for data centres,driven by the push for digital governments and accessible public services.For example,in Indonesia,the government has commissioned four National Data Centres(PDN)to consolidate government data under the One Data Indonesia framewo

154、rk and accelerate digitalisation across agencies.42 COVID-19 has also contributed to this by accelerating migration to hybrid work and online learning,enterprise digital transformation,and IT modernisation.Computation-intensive technologies,such as artificial intelligence,cloud computing,big data an

155、alytics and IoT products(e.g.autonomous vehicles),have also contributed to the growth of the data centre industry.42 YenOcampo,“IndonesiasNationalDataCentrestoImprovePublicService,”OpenGovAsia,November18,2022,https:/ 3:Data centres foundational for the digital economyThe term“data centre”is often br

156、oadly applied to rooms or buildings that offer space,power and cooling to house and host servers,compute,storage and other ICT equipment.Modern data centres have evolved from efforts to house ICT equipment to the need tosupport thousands of interconnected devices efficiently and effectively.It power

157、s your:(i)mobile apps(ii)online videos(iii)work documents(iv)cloud photo storage16The need for cost-effective and scalable solutions is incentivising businesses to transition from on-premise to colocation data centres43 which allow customers to directly connect enterprise-to-enterprise in a professi

158、onally managed environment.Direct interconnection improves speed,performance,security and reduces cost and delays in transfer of data.Southeast Asia is slated to be the fastest-growing colocation region internationally,ballooning by a Compound Annual Growth Rate(CAGR)of 16.5 per cent to hit US$6.5 b

159、illion in 2026.44 Singapore is Asia-Pacifics most mature and competitive colocation market,accounting for 60 per cent of the regions data centre capacity,45 while Indonesia,Malaysia,Thailand,and to a smaller extent,Vietnam and the Philippines are emerging as promising colocation hotspots.Indonesia i

160、s projected to enjoy the highest five-year CAGR in market size of 21.8 per cent in the region.46 Another notable trend is the rise of edge data centres in non-metropolitan areas or suburban areas with lower population densities to maintain low latency and cost competitiveness.Edge facilities could t

161、ake the form of containerised or modular data centres,which have higher mobility and support more flexible redeployment.Singapore is predicted to experience decelerating growth due to colocation market saturation,land scarcity and stricter sustainability standards in the long term.The moratorium on

162、building data centres imposed by the Singapore government in 201947 catalysed the shift of data centre investment towards emerging markets,notably Indonesia and Malaysia.Governments across ASEAN are proactively courting investments through policy instruments such as SEZs,tax incentives and expedited

163、 land procurement.For instance,Indonesias Nongsa Digital Park in Batam has attracted colocation providers,namely China-based GDS Services and Singapore-based Data Center First,and some of Vietnams 110 SEZs have specific mandates for data centres.483.2 Greener Data CentresThe data-intensive computati

164、ons performed by data centres consume a considerable amount of electricity to power not only computer servers,but also essential systems like Uninterruptible Power Supply(UPS),cooling,and ventilation infrastructure.According to conservative estimates,data centres account for nearly 1 per cent of glo

165、bal electricity consumption.49 50 Thus,the expansion of data centres in ASEAN will give rise to a significant challenge as the region seeks to meet its net-zero targets.Greening data centres is thus necessary and can be considered with these two frames in mind:(i)reducing the base demand for energy

166、required through increasing operational efficiencies,and(ii)increasing the supply of renewable energy.Reducing Base DemandIn order to fulfil their net-zero commitments,there will be a need for ASEAN governments to implement stricter sustainability rules to decarbonise the data centre sector.Followin

167、g the lifting of Singapores moratorium on building data centres,the IMDA and Economic Development Board(EDB)launched a 43 Colocationdatacentresrefertofacilitiesthatrentoutrackspaceandserverstothird-partycompanies.RackSolutions,“WhatIsaColocationDataCenter?,”RackSolutions,January16,2018,https:/ Bhask

168、arRakshitetal.,“HowDataCenterOperatorsCanWininSoutheastAsia,”Kearney,November11,2022,https:/www.southeast- KentChow,“Commentary:WhereDoDataCentresFitintoSingaporesVisionofGreenGrowth?,”ChannelNewsAsia,March23,2022,https:/ ChristineLiandXianYanWong,“DataCentresInSoutheastAsiaPoisedForRapidGrowth”(Cus

169、hmanandWakefield,August2019),https:/ JunYuanYong,“NewDataCentresinSingaporetoMeetHigherStandardsWhenMoratoriumLiftsinQ22022,”TheBusinessTimes,January27,2022,https:/.sg/companies-markets/new-data-centres-singapore-meet-higher-standards-when-moratorium-lifts-q2-2022.48 AriztonAdvisory&Intelligence,“So

170、utheastAsiaDataCenterMarket-InvestmentAnalysis&GrowthOpportunities2022-2027,”September2022,https:/ GeorgeKamiya,“DataCentresandDataTransmissionNetworks”(Paris:InternationalEnergyAgency,September2022),https:/www.iea.org/reports/data-centres-and-data-transmission-networks.50 FrancescaMontevecchiet.al.

171、,“Energy-efficientCloudComputingTechnologiesandPoliciesforanEco-friendlyCloudMarket”(Vienna:EnvironmentAgencyAustria,2020),https:/op.europa.eu/s/yBbk.1751 ThePUEisaratioofthetotalamountofpowerconsumedbyadatacentrefacilitytothepowerusedtooperateitsITequipment.AlowerPUEtranslatesintohigherefficiency.G

172、enerally,highlyefficientdatacentresshouldbenchmarkatPUEsoflessthan1.20,whileindustry-leadingproviders(e.g.Google)havePUEsofcloseto1.10.52 Joppa,Lucas,andNoelleWalsh.“MadetoMeasure:SustainabilityCommitmentProgressandUpdates.”Microsoft,July14,2021.https:/ Equinix,“Design,InnovateandBuildfortheEnvironm

173、ent,”2022,https:/ for Application exercise(DC-CFA)to pilot greener data centres.Eligible designs should have a Power Usage Effectiveness(PUE)of less than 1.30,51 and obtain platinum certification under the Building and Construction Authority(BCA)-IMDA Green Mark for New Data Centre(GM-NDC).Apart fro

174、m government-mandated standards,the data center industry has embarked on a slew of other initiatives to mitigate their environmental impact.Data centre providers are looking at deploying technology that reduces the energy consumption of servers on site(e.g.,multi-core processor-based applications,vi

175、rtual machines),and improving efficiencies through energy-efficient cooling and technology-guided management solutions.The tech industry is also embracing the movement towards green computing and green coding to reduce their overall carbon footprint.The notable mitigation measures include the follow

176、ing examples:Energy Microsoft and Google have pledged to fulfil the 24/7 Carbon-free Energy Compact in data centres by pivoting from offsets to hourly procurement from renewables by 2030.Microsoft is piloting 24/7 for data centres in Sweden and the Netherlands with local energy providers Vattenfall

177、and Eneco respectively.52 Equinix is deploying fuel cell technology to help achieve cleaner energy,resiliency and energy security.By the end of 2022 it had installed 43.5 megawatts of capacity in the USA and is part of a consortium,co-funded by the Clean Hydrogen Partnership,to develop a next-genera

178、tion fuel cell platform with tri-fuel compatibility including hydrogen,natural gas and Liquefied Petroleum Gas(LPG)as part of the EcoEdge PrimePower(E2P2)project.53Cooling Promising energy-efficient cooling solutions include hot-and-cold-aisle containment,direct-to-chip liquid cooling and close-coup

179、led cooling.Equinix deploys hot and cold aisle containment and novel surface cooling in the Equinix Cooling Array to support high-density clients while reducing water and power consumption needs in its Tanjong Kling data centre in Singapore(SG5).54 Google utilises close-coupled cooling by converting

180、 server rooms into cold corridors and installing cooling pipes in close proximity to computer servers.The arrangement shortens the airflow distance from the heat source to liquid cooling.18Technology Google and DeepMind have developed an AI-powered data centre management software to optimise cooling

181、 efficiency,reducing electricity consumed in a Google data centre by 40%.55 The algorithm harnesses Machine Learning to generate predictive models to calculate PUEs,detect overheating and deliver cooling recommendations.Huawei incorporates AI and ML in its prefabricated FusionDC technology for a sui

182、te of power,cooling and computation resource management tools.Its iManager applies AI and IoT to optimise space,power and cooling,and automate asset allocation.Increasing Supply of Renewable EnergyAccess to renewable energy remains a key challenge for companies that have committed to internal net-ze

183、ro targets.To minimise and offset emissions,many operators are investing in building renewable energy capacity,negotiating renewable Power Purchase Agreements(PPAs),obtaining Renewable Energy Certificates(RECs),and purchasing carbon credits.However,these solutions have their constraints the high cos

184、t of RECs56,the inflexibility of physical PPAs which are common in ASEAN57,and the lack of an established market for high-quality,tradable carbon credits within ASEAN has resulted in increased cost for companies to be more sustainable.Eventually,enabling cross-border low-carbon energy flows are need

185、ed to decarbonise the industry.In the intermediate,greater clarity and consistency of policy regulation,particularly with regards to green certification and carbon taxes,would help incentivize data centre providers to adopt greener practices.3.3 Cross-border Data FlowsGiven the importance of data in

186、 the digital economy,cross-border data flows(CBDF)will be integral in facilitating regional growth and innovation.Besides improving national economies and living standards in developing countries58,CBDF are also integral in supporting sustainability goals.Digital technologies can aid in information-

187、sharing,which supports the acceleration of innovation and R&D in climate mitigation and adaptation solutions.CBDF will also be integral to the sustainable growth of data centres in ASEAN.Regulatory frameworks which enable CBDF will allow for the efficient allocation of resources,reducing the need fo

188、r companies to store data locally in their countries of operation.This would,in turn,reduce the overall number of data storage facilities and thus,the energy required to power them.While CBDF are important,some AMS have shown resistance to the free flow of data due to varying concerns such as person

189、al data protection and privacy,national security,control over data and perceptions that CBDF will undermine domestic economic growth(Table 4).This has manifested in data localisation clauses in local regulations.These concerns can be partially attributed to the intangible nature of data,which presen

190、ts an obstacle in quantifying the value of data flows.55 RichardEvansandJimGao,“DeepMindAIReducesGoogleDataCentreCoolingBillby40%,”DeepMindTechnologies,July20,2016,https:/ S&PGlobalCommodityInsights,“RecordHighCertificatesPricesBringRenewableEnergyBuyinginFocus,”,December1,2022,https:/ International

191、EnergyAgency,“SoutheastAsiaEnergyOutlook2022”(IEAPublicationsInternationalEnergyAgency,May2022),https:/ JoshuaP.MeltzerandPeterLovelock,“Regulatingforadigitaleconomyunderstandingtheimportanceofcross-borderdataflowsinAsia,”March2018,https:/www.brookings.edu/wp-content/uploads/2018/03/digital-economy_

192、meltzer_lovelock_working-paper.pdf.1959 PDPC,“SingaporeNowRecognisesAPECCBPRandPRPCertificationsUnderPDPA,”PersonalDataProtectionCommissionSingapore,June2,2020,https:/www.pdpc.gov.sg/news-and-events/announcements/2020/06/singapore-now-recognises-apec-cbpr-and-prp-certifications-under-pdpa.60 Dhiraph

193、olSuwanprateepandThananyaChaikamonsuk,“Thailand:OperationalisingPDPA-DataTransfersandLocalisation-PartTwo,”OneTrustDataGuidance,September2022,https:/ MathieuLegendre,“WhatAretheBenefitsofanAPECCBPR/PRPCertification?,”SchellmanCompliance,September6,2022,https:/ countries believe localising data will

194、support domestic economic growth,the long-term comparative benefits of liberalised data flows by allowing for increased foreign investments outweigh those of protectionist regulation.Such localisation laws ultimately undermine efficiency,impede digital trade,and confer substantial costs to all stake

195、holders involved.Such concerns should not be diminished,and stakeholders will need to develop new ways to manage them.Subsequent solutions should prioritise fostering a certain degree of trust and protection to ensure CBDF is secure while remaining open.Certain AMS have already implemented laws whic

196、h help facilitate this.For example,Singapore59 and Thailands60 respective Personal Data Protection Acts(PDPA)stipulate that data may only be transferred overseas if the recipient country is able to ensure at least an equal degree of protection as the domestic regulation.Moving forward,ASEAN-mechanis

197、ms that facilitate trusted data flows will also need to be refreshed.There is currently no obligation to comply with ASEANs current Data Management Framework(DMF)and Model Contractual Clauses(MCCs),which aim to support SMEs in navigating complex regulations on data privacy and protection.This has ma

198、de it difficult to track overall utilisation,which appears to be low at best.AMS can also consider joining the Global Cross-Border Privacy Rules(CBPR),which facilitates data protection while supporting open data flows.The Global CPBR is open to all and can complement efforts by ASEAN to streamline d

199、ata regulation.This would benefit AMS by allowing for easier international development and data transfer,as well as offering businesses a competitive advantage61.As ASEAN establishes the Digital Economic Framework Agreement(DEFA),some of these standards and principles on data flows could be enshrine

200、d either in part or full for better business clarity.Table 4:Main concerns over cross-border data flows in ASEANSource:Authorsresearchfromtrips1.Personal data protection and privacy protecting consumers from cybersecurity attacks,rise of fake news and misinformation and scams2.National security wary

201、 of external interference in domestic affairs 3.Loss of control over data countries resort to overregulating data flows to ensure that they are safeguarded against the risks of CBDF4.Undermine growth in domestic economy inability to quantify the value of data flows,lack of fair competition between M

202、NCs and MSMEs204.Powering Data&the Digital Economy:Seeking Clean Energy SolutionsMost of the world still relies on significant amounts of fossil fuels to generate electricity,releasing tremendous greenhouse gas(GHG)emissions.To ensure that the growth of the digital economy does not exacerbate climat

203、e change,there is a need to decarbonise the electrical grid and transition to a low-carbon energy base.The reluctance to do so in part is due to the reliability of certain power generation sources and capabilities needed for existing energy grids to handle the spikes and troughs that come with low-c

204、arbon sources.Countries can choose to do this with a combination of batteries or smart grid technologies,and in more extreme cases,curtailment.In 2015,ASEAN committed to increase the share of solar,wind and hydropower in the energy mix from 9 per cent in 2014 to 23 per cent in 2025,this was a highly

205、 progressive pledge at the time.To reach this target,it was estimated that ASEAN would need to attract US$27 billion in renewable energy generation and infrastructure investment every year from 2016 to 2025.Cumulatively a total of approximately US$290 billion will be needed over the 10 years.In rece

206、nt years,momentum has built in the right direction with 82 per cent of new power capacity,estimated at 22GW,being generated from renewable sources.624.1 Cross-border Energy FlowsSoutheast Asia has the potential to generate gigawatts of renewable energy from different sources.As these renewable resou

207、rces are not evenly distributed geographically across AMS,there is potential for some members to consider selling their surplus energy.Cross-border energy flows could be in the form of electricity or even involve other forms of surplus energy such as green hydrogen or ammonia.Creating an integrated

208、grid to trade and move renewable energy to other countries has a number of benefits.First,having a larger and interconnected grid would allow countries bringing on large renewable energy projects to manage the fluctuations in power across their grid.Second,selling renewable energy to neighbouring co

209、untries helps ASEAN in its decarbonisation journey,and leads to a greening of the supply chain for production in ASEAN.Third,it would support the commercialisation of renewable energy projects that would otherwise not be feasible in export countries as the economics of their installed domestic base

210、would not support such a large facility nor would they be willing to pay the price premium.Lastly,it can also be a stable source of national revenue.To realize these benefits,policy frameworks would need to be harmonised to support cross-border energy flows and energy exports within ASEAN.1.Liberali

211、sation of cross-border energy flows is needed for countries to meet climate targets.2.An ASEAN Power Grid can help to accelerate regional decarbonisation.3.Green and transition finance will be needed for an integrated and low carbon grid.62 ShiNingTeh,“AseanPowerGridOptionforSporetoSourceGreenEnergy

212、,”TheStraitsTimes,September19,2021,https:/ TokHongLing,JenniferTay,andSaumyaRao,“RegionalElectricityTradeinASEAN”(PWC,October2022),https:/ CherylTan,“Singaporecouldsoonimportrenewableenergylikesolar,hydrogenfromIndonesia,”TheStraitsTimes,March17,2023,https:/ have had years of experience in the cross

213、 border trade of electricity.Laos has built up its power generating capacity through the construction and operation of several hydroelectric dams.It exports up to 78 per cent of its generation capacity.63 Sarawak,in East Malaysia,generates 3500MW of hydropower and has the potential for more capacity

214、-it currently exports 200MW of electricity to West Kalimantan in Indonesia.Myanmar exports electricity to China through two hydropower projects that support the China-Myanmar Economic Corridor.Recently,Singapore has signed agreements bilaterally with Cambodia and Indonesia to collaborate on cross-bo

215、rder electricity trade and the development of renewable energy projects.64 These bilateral arrangements for the trade and financing of renewable energy could have the potential to form the template for future initiatives that could be multilateral in nature and are much needed in a multi-stakeholder

216、 grouping like ASEAN.Moving forward,the ability to link different national grids to each other would create a system that is more reliable,better balanced,and increasingly green.While a fully integrated ASEAN power grid is still a long time away,there have been several advancements towards achieving

217、 that outcome.4.2 Climate TechnologyHydrogen is increasingly being explored as a new energy source for the region due to the relative ease of adjusting supply chains and retro-fitting existing infrastructure to run on it.According to the ASEAN Centre for Energy(ACE),coal and natural gas are the two

218、largest sources of fuel for power generation in the region.65 Singapore is currently the only AMS to have a formal national strategy to implement hydrogen technology.However,in Malaysia and Philippines,the development has been led by private companies such as PLN and Petronas.66 67 In Indonesia,Pert

219、amina has signed an MOU with Tokyo Electric Power Company Holdings(TEPCO HD)on the development of green hydrogen and green ammonia development.68 The development of a hydrogen ecosystem among AMS could accelerate the decarbonisation of the electrical grid.In the IEAs Clean Technology Scenario,CCUS r

220、epresents almost 20 per cent of emissions reductions needed across the industry sector.69 There are large hopes riding on the success of CCUS technologies at scale.For example,Petronas,in Malaysia,is embarking on one of the largest offshore carbon capture and sequestration(CCS)site in Sarawak,with t

221、he capacity to reduce CO2 emissions from flaring by 3.3 MtCO2e.70 R&D in CCUS projects will be needed and could range from sequestering carbon in newer forms of concrete and cement,to injecting CO2 into depleted oil fields.A lot of funding is being directed into different forms of CCUS technology th

222、at will potentially lead to different decarbonisation pathways for different countries as they seek to turn their hard-to-abate industries carbon neutral.224.3 ASEAN Power GridThe ASEAN Power Grid(APG)was one of six programme areas that was initially identified in the first ASEAN Plan of Action for

223、Energy Cooperation(APAEC)series,1999-2004.As we enter the fourth APAEC,there are several trials between countries to test the interconnections between grids(e.g.Laos-Thailand-Malaysia and Sumatra-Malaysia).These trials have been relatively successful with the Laos-Thailand-Malaysia trial having been

224、 renewed and expanded,with the inclusion of Singapore.While progress over the last two decades has been relatively slower compared to other regional grids globally,momentum has been building to drive interconnectivity among AMS.ASEANs move towards net-zero would benefit greatly from a fully integrat

225、ed grid,allowing renewable energy rich AMS to export energy to the rest of the region.This integration would allow for firms to make better business decisions on the location of their business units to leverage the different skills,demographics and languages that exist in AMS.The exporting of renewa

226、ble energy would also assist in the transition of electricity away from carbon intensive sources,potentially without the need to retire older carbon intensive assets earlier.This can be accomplished by building capacity in renewable energy generation while in parallel,drawing down aging infrastructu

227、re in an accelerated schedule supported by the revenue by green energy sales.As more types and sources of renewable energy become accessible,there will be a need to manage the ebb and flow of electricity through a particular grid.Smart grids71 will increasingly become the standard to balance the loa

228、ds for national grids,as identified by the ACE to be essential to establish reliable and cost-effective power supply.72 They are instrumental in integrating renewables into the grid to maintain Figure 4:Percentage of exports,imports vs.generated energy in ASEAN countries(Averaged 2018-2020)Source:Pw

229、CanalysisbasedonIEA,Governmentinformation,USEIA,EnerdataNote:FiguresforSingaporeselectricityimportsareasofJuly2022.-100%100%-80%-60%-40%-20%0%20%40%60%80%ExportImportPhilippinesIndonesiaVietnamThailandMalaysiaBruneiSingaporeLaosMyanmarCambodia71 Anelectricitynetworkthatusesdigitalandotheradvancedtec

230、hnologiestomonitorandmanagethetransportofelectricityfromallgenerationsourcestomeetthevaryingelectricitydemandsoftheendusers.72 ASEAN-GermanEnergyProgramme(AGEP)Team,“StudyonSmartGridOverviewinASEAN”(ASEANCenterforEnergy,November2018),https:/aseanenergy.org/study-on-smart-grid-overview-in-asean/.23th

231、e performance and resilience of transmission and distribution systems.Thus,there should be increased investment in the digitalisation of all grid components,including power transformers,substation automation,flexible alternating-current transmission systems,and advanced sensors.Adoption of such tech

232、nologies will allow AMS to transition out of carbon intensive production cycles and allow them to begin decarbonising their economies.4.4 Transition and Green FinanceTo make the transition to low carbon energy technologies as well as to build the necessary infrastructure,a significant amount of fina

233、ncing would be required.McKinsey estimates that private financial institutions could facilitate as much as US$3.5 trillion of annual financing globally between 2022 and 2050,with commercial banks providing between US$2.0 and US$2.6 trillion,approximately 66 to 74 per cent of total private sector fin

234、ancing.73 Banks and non-banking financial institutions have a role to play in providing this capital.However,banks have been slow to support newer technology platforms,instead prioritising transitional efforts by firms to reduce their carbon footprint using proven technologies.This must be complemen

235、ted by government efforts to build new infrastructure while borrowing from the market using green and transition financial products.This would allow the market to begin to build and test appropriate products,while incurring lower risk,as national institutions are less likely to default.State run com

236、panies in the region have begun using transition finance to build biofuel supply chains as well as carbon capture utilisation and storage facilities.One of the challenges hindering the development of green and transition finance is the availability of good quality data.This is especially since the t

237、ype of data most commonly available revolve around economic activity measurement,and conversions to emissions data have not yet been established.This will likely change with time,as consistent standards for sustainability reporting are developed by institutions like the International Sustainability

238、Standards Board(ISSB),and companies start to report along more standardised formats.As large corporates start to align their reporting along ISSB standards there will be a ripple effect as SMEs in their supply chains are also required to report similar information.As more elements of sustainability

239、data gets recorded and reported,financial institutions would be more willing to extend financing,as the risk of greenwashing and meeting their own net-zero targets is minimized.73 MarkAzoulayetal.,“FinancingtheNet-ZeroTransition:FromPlanningtoPractice,”McKinsey&Company,January23,2023,https:/ Digital

240、 TradeWith the advent of the fourth industrial revolution(4IR)or industry 4.0,digitalisation has transformed the movement of goods and services across borders.74 Many have embraced the emergence of digital economy products and services such as e-commerce,paperless trade and the automation of logisti

241、cs.As trade becomes increasingly digitalised,the right governing frameworks are needed to ensure environmental sustainability costs are mitigated,and benefits realised.Trade is a natural area of confluence for digitalisation and sustainability.For example,the use of digital tools like Artificial Int

242、elligence(AI)and Machine Learning to optimize shipping routes in real time not only increases operational efficiencies,but results in less emissions being produced per shipment.Examining supply chains through the lens of both digitalisation and sustainability will be at the core of future business s

243、trategies.This requires enabling Digital Trade Facilitation(DTF)“the application of modern information and communication technologies to simplify and automate international trade procedures”75,to create a policy ecosystem for digital trade.Developing more efficient and resilient supply chains can su

244、pport efforts towards climate goals,as digitalisation can aid supply chain traceability.This can address what many businesses view as their key challenge the ability to gain insight into their entire value chain.5.1 Digitalising Supply ChainsThe fragility of the global value chains(GVCs)were exposed

245、 during the COVID-19 pandemic,as cross border movement of goods were disrupted due to lockdown measures.Although there has been some measure of recovery and the restarting of GVCs,multiple barriers to the global trading system will cause friction and fragmentation,which in turn would negatively affe

246、ct global growth.The International Monetary Fund(IMF)predicts that the long-term cost of trade fragmentation could be as high as 7 per cent of global GDP.76The digitisation of supply chains can help to optimise supply chain processes,thereby improving efficiencies and reducing cost.While much has be

247、en said about the need for paperless trade,trade transactions globally remain highly dependent on paper documents.The International Chamber of Commerce(ICC)notes that less than 1 per cent of trade documents are digitized and that one cross-border transaction requires the exchange of 36 documents and

248、 240 copies on average.771.Supply chains are a natural area of confluence for digitalisation and sustainability.2.Tackling Scope 3 emissions are top of mind for businesses serious about net zero.3.Digitisation and using monitoring technologies can help decarbonise value chains.74 SusanLundandJamesMa

249、nyika,“HowDigitalTradeIsTransformingGlobalisation”(Geneva:InternationalCentreforTradeandSustainableDevelopment(ICTSD)andWorldEconomicForum,January2016),https:/www.tralac.org/images/docs/8854/how-digital-trade-is-transforming-globalisation-e15-initiative-january-2016.pdf.75 YannDuvalandMengjingKong,“

250、DigitalTradeFacilitation:PaperlessTradeinRegionalTradeAgreements,”ADBIWorkingPaperSeries(Tokyo:AsianDevelopmentBankInstitute,June2017),https:/www.adb.org/publications/digital-trade-facilitation-paperless-trade-regional-trade-agreements.76 HannahWard-Glenton,“IMFSaysFragmentationCouldCostGlobalEconom

251、yupto7%ofGDP,”CNBC,January16,2023,https:/ ICC,“StandardsToolkitforCross-BorderPaperlessTrade”(InternationalChamberofCommerce,June21,2022),https:/iccwbo.org/news-publications/policies-reports/standards-toolkit-for-cross-border-paperless-trade.2578 KatiSuominen,“TrustinTrade:ChallengestotheGlobalConve

252、rgenceonDigitalStandards,”HinrichFoundation,March28,2023,https:/ UNESCAP,“DigitalandSustainableTradeFacilitation:GlobalReport2021”(Bangkok:UnitedNationsEconomicandSocialCommissionforAsiaandthePacific,February2,2022),https:/www.unescap.org/kp/2022/untf-survey-2021-global.80 AndreWirjoandSylwynCalizoJ

253、r,“TradeNetworksamidDisruption:PromotingResiliencethroughDigitalTradeFacilitation,”PolicyBrief(Asia-PacificEconomicCooperation,December2022),https:/www.apec.org/publications/2022/12/trade-networks-amid-disruption-promoting-resilience-through-digital-trade-facilitation.81 ASEAN,“ASEANAgreementonElect

254、ronicCommerceOfficiallyEntersintoForce,”AssociationofSoutheastAsianNations,December3,2021,https:/asean.org/asean-agreement-on-electronic-commerce-officially-enters-into-force/;“ASEAN Agreement on Electronic Commerce,”signed on January22,2019,https:/agreement.asean.org/media/download/20190306035048.p

255、df.82 ASEAN,“ASEANSingleWindow,”AssociationofSoutheastAsianNations,accessedApril25,2023,https:/asean.org/our-communities/economic-community/asean-single-window/.There are positive signals that more countries are digitalising their supply chains.The fourth UN Global Survey on Digital and Sustainable

256、Trade Facilitation79 revealed that over 140 countries had made progress in adopting DTF measures.This includes implementing electronic payment systems,paperless trade and electronic customs.DTF can smoothen barriers to trade by countering supply chain disruptions80 and overcoming the inefficiencies

257、and inequalities that trade presents to business.With ports and logistics facilities affected by pandemic movement restrictions,AI-guided cranes,sensors and robots were identified by the APEC Policy Support Unit as digital solutions to mitigate such disruptions.Digitalising customs documents and usi

258、ng data combined with blockchain-enabled platforms were also necessary to circumvent the obstacles of moving goods across borders.Even as the world emerges from the pandemic,these tools and practices are important to develop more resilient GVCs.They also contribute to the formation of a single windo

259、w which speeds up trade processes and reduces the cost for business.For ASEAN,progress in digitalising trade has been evident with the ASEAN E-commerce Statement and the development of the ASEAN Single Window(ASW).The ASEAN E-commerce Statement81 aims to facilitate cross-border e-commerce in the reg

260、ion through(i)Paperless trading,(ii)Electronic authentication and electronic signatures,(iii)Online consumer protection,(iv)Cross-border transfer of information by electronic means,(v)Online personal information protection,and(vi)Location of computing facilities,while the ASW allows for the electron

261、ic exchange of trade-related documents.All ten AMS joined ASW live operations at the end of 2019 with an increasing range of forms being digitalised.At the latest ASW symposium,studies revealed that more than 1 million electronic Certificates of Origin(e-Form D)were exchanged in 2022,resulting in co

262、st savings of$150 million.82These practices can be promoted further by governmental agreements.Individual AMS have embarked on bilateral trade agreements like DEAs and GEAs to facilitate digital and green trade.Singapore first piloted the Digital Economy Partnership Agreement(DEPA)with New Zealand a

263、nd Chile in 2020 and has since embarked on DEAs with Australia,the UK,and Korea respectively.It has also signed various Figure 5:The case for paperless trade7810%improvement in paperless trade implementation=6%reduction in trade time on average in Asia-PacificSMEs exports could increase by 13%if tra

264、de documents were digitizedFull digitization of trade documents could save 13 million tons of paper=planting one billion trees2683 GreenEconomyAgreement,“SingaporeAustraliaGreenEconomyAgreement,”www.gea.gov.sg,April13,2023,https:/www.gea.gov.sg/sagea/.84 GreenhouseGasProtocol,CorporateValueChain(Sco

265、pe3)AccountingandReportingStandard(Washington,DC:WorldResourcesInstituteandWorldBusinessCouncilforSustainableDevelopment,2011),https:/ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf.85 Scope1emissionsaredirectemissionsfromownedorcontrolle

266、dsources.Scope2emissionsareindirectemissionsfromthegenerationofpurchasedenergy.Scope3emissionsareallindirectemissions.https:/ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf.86“WhatIstheDifferencebetweenScope1,2and3Emissions,andWhatAreCompaniesDoingtoCutAllThree?,”WorldEconomicForum,

267、September20,2022,https:/www.weforum.org/agenda/2022/09/scope-emissions-climate-greenhouse-business.87 DHL,“TheImportanceofEco-FriendlyPackaging,”DHL,October13,2022,https:/ CDPWorldwide,“Q&A:CorporateSustainabilityReportingDirective(CSRD),”March2021,https:/ Thisincludesthe:ClimateDisclosureStandardsB

268、oard(CDSB),theTaskForceforClimate-relateFinancialDisclosures(TCFD),theValueReportingFoundationsIntegratedReportingFramework,andindustry-basedSustainabilityAccountingStandardsBoard(SASB)standards.MOUs with AMS like Thailand,Malaysia,and Vietnam.While the terms and level of commitment vary for each co

269、untry,these agreements signal a commitment towards establishing standards and norms for the digital and green economies.Aside from promoting interoperability,DEAs and GEAs also help facilitate trust between the parties involved through cross-border collaboration on mutual areas of interest.For examp

270、le,the Singapore-Australia GEA encourages the exchange of information in its key modules,which includes the development of skills and capabilities needed for green growth,and spurring R&D and commercialisation of green technologies83.5.2 Tackling Scope 3 EmissionsMajor companies follow the GHG proto

271、col84 corporate standard that classifies emissions into three scopes.85 Scope 3 emissions often comprise majority of a business carbon footprint86,but are the most difficult to measure given the difficulties in collecting data throughout the value chain.Although Scope 3 does not directly fall under

272、an organisations control,it is important that firms recognise that they can influence their suppliers and nudge them towards reporting their Scope 1 and 2 emissions.This can be achieved through providing monetary incentives,as well as training and capacity building to help suppliers develop skills a

273、nd adopt relevant digital tools.Supply chain companies have embarked on a lengthy process to redesign their businesses to reduce costs and emissions on each item in the value chain.Some of these methods include simply optimizing packaging,design,and materials used,while others involve using more adv

274、anced tools like computer programs to process batch shipping and optimise delivery batches.This results in cost savings due to reduced packaging and fuel required in transportation.87 Major companies have also invested in route optimisation software to increase the timeliness of deliveries whilst lo

275、wering the emissions of shipping products.However,the movement towards tracking,measuring and mitigating Scope 3 emissions is still at the beginning stages.Most firms have not planned for Scope 3 emissions as part of their overall emissions,mainly since the reporting of Scope 3 emissions is not mand

276、atory in most major markets save the EU88,and there continues to be a lack of harmonized reporting standards for this category.Another challenge relates to the availability and quality of data surrounding Scope 3 emissions.Firms that have endeavoured to voluntary report their Scope 3 emissions cite

277、that the main challenge pertains to collecting reliable data from their suppliers,given that most of them comprise of SMEs that are either ill-equipped or have no impetus to report their emissions.Firms then default to using proxies such as industry averages,spend-based data,or other estimates,which

278、 are less accurate and can have large margins of error.Since the formation of the International Sustainability Standards Board(ISSB)at COP26,it is expected that there will soon be a single unifying sustainability reporting standard.This baseline standard will likely include reporting of all three GH

279、G scopes for companies and harmonize standards and frameworks proposed by previous disclosure initiatives.89 The emphasis Scope 3 reporting was also reflected at the 2790 InternationalFinancialReportingStandardsFoundation,“ISSBUpdateOctober2022,”2022,https:/www.ifrs.org/news-and-events/updates/issb/

280、2022/issb-update-october-2022/.recent ISSB Board meeting90,where a unanimous decision was made to include company disclosures on Scope 3 emissions,beyond just Scope 1 and 2.Relief provisions were also committed to help companies meet these new requirements.While this remains a relatively new area,so

281、me companies have embarked on initiatives to track and trace their Scope 3 emissions.These initiatives highlight the need to engage suppliers and help them start their decarbonisation journeys(Figure 6).Schneider Electric(SE)s“Zero Carbon Project”aims to cut 50%in emissions(Scope 1 and 2)from its su

282、ppliers operations by 2025.It has actively embarked on providing decarbonisation training to 1,000 companies in its value chain to help them reduce their emissions.Through this process,SE estimates that it can cut emissions by 6 million CO2e,approximately 20 times more than they would have been able

283、 to reduce on their own.Equinix is working with its suppliers and assisting them in setting science-based targets by 2025.They have built a deep relationship with their suppliers allowing them to gather data and help them develop their own corporate-level GHG reduction targets.Equinix has made progr

284、ess towards its 2025 goal of engaging 66%of its suppliers by emissions.In 2022,17%of suppliers by emissions committed to the goal.Equinix recognises that their suppliers are at different stages of the sustainability journey and has offered tools to accelerate their learning.In line with Microsofts c

285、orporate sustainability goals,their procurement teams worked with their supply chain counterparts to revise its Supplier Code of Conduct in 2020.The code obliges suppliers to disclose their emissions to Carbon Disclosure Project(CDP)or other reporting avenue and provide a plan to reduce emissions.Mo

286、re than 87%of their suppliers now provide their data to CDP,which allows Microsoft to provide Scope 3 transparency to their customers.Figure 6:Scoping out Scope 3-Examples of initiatives to tackle Scope 3 emissions286.Digital Solutions to Sustainability ChallengesThere is optimism that technological

287、 innovations can help countries and companies achieve their net zero goals.This can be as simple as increasing efficiencies as alluded to in earlier chapters;but more significantly,the introduction of new technologies such as AI,machine learning,and blockchain technology to green processes.Emerging

288、applications can be observed in the areas of supply chain monitoring and the verification of carbon credits.6.1 Artificial Intelligence(AI)The benefits of AI can also be applied to climate.91 AI has also been proven to be a useful tool for achieving sustainability goals a study by PwC estimates that

289、 using AI could reduce GHG emissions by 4 per cent in 2030 or 2.4 Gt CO2e equivalent to the 2030 annual emissions of Australia,Canada and Japan combined.92 Other examples include supporting environmental conservation and securing sustainable food sources;as well as tracking,monitoring,and managing s

290、ystems to enable more transparent and efficient industries.For example,Huaweis Farm to Fork Strategy93 uses AI capabilities to monitor soil and yield to help farmers maximise produce and ensure an adherence to global environmental standards.Climate data sets are extremely large and take a considerab

291、le amount of time to collect,analyse,and use to make informed decisions to execute eventual policy decisions.Using AI would allow for a better analysis of constantly evolving perimeters to make informed predictions about changes in the environment.AI is a tool that could potentially allow scientists

292、 and policymakers to have useful conversations by linking climate models with the decisions that need to be made based on the results of those models.However,trust or assurance,is a key aspect of using AI and that has yet to be completely accepted.6.2 Green FintechThe overlap of digital and sustaina

293、bility is also shaping the future of the financial services industry.Although Fintech has experienced significant growth in ASEAN,sustainability concerns are starting to receive more attention.While global FinTech funding has dropped in recent years,Green FinTech funding has increased by approximate

294、ly 140 per cent year on year(YoY)for 2022.94 However,most of the funding available is targeted towards European firms,with France and the UK receiving the most venture capital(VC)funding.Nevertheless,the ambiguity presents a significant opportunity for companies and banks to determine the niches the

295、y want to operate in and ultimately own.1.Digitalisation and new technologies can help drive decarbonisation efforts.2.Investments and relevant digital and green skills will be required.3.Regional collaboration in ASEAN can foster an environment of innovation and support a market for digital-green p

296、roducts.91 WillEvison,“HowAICanEnableaSustainableFuture”(PWC),accessedApril25,2023,https:/www.pwc.co.uk/services/sustainability-climate-change/insights/how-ai-future-can-enable-sustainable-future.html.92 ibid.93Huawei,“ArtificialIntelligenceandtheEuropeanGreenDeal,”Huawei,September30,2020,https:/hua

297、wei.eu/story/artificial-intelligence-and-european-green-deal.94 AmyOBrienandFreyaPratty,“ClimateFintechFundingReachesRecordHighin2022,”Sifted,January10,2023,https:/sifted.eu/articles/climate-fintech-funding-record-2022.2995 Stripe,“Climate,”Stripe,accessedApril19,2023,https:/ company,Stripe,recently

298、 launched a new service called Stripe Climate95,that allows firms to direct a fraction of their revenue from payments to help scale emerging carbon removal technologies.This has allowed thousands of companies that use Stripe Climate to partner with large MNCs like Alphabet,Meta,and JP Morgan Chase t

299、o co-fund Frontier,an advance market commitment,to buy an initial US$1 billion of permanent carbon removal between 2022 and 2030.Frontier will play three roles in the process:first,by aggregating demand to determine how much willing capital is available to purchase carbon removal,next,by vetting the

300、 suppliers of carbon removal and lastly,through acting as the platform for approving the removal purchases.Green FinTech has also extended to the raising of capital,as the proliferation of platforms have allowed individuals and organisations to confidently invest in green companies,as the platforms

301、themselves verify green credentials.RaiseGreen,partnering with IBM,has a platform that allows individuals to invest in clean energy projects for as little as US$100.By democratising investment in clean energy and technologies,Green FinTech can potentially open companies to new sources of investment

302、and allow investors to be involved in the early stages of development.For ASEAN,connecting its carbon markets to facilitate the trade of carbon credits would likewise attract Green Fintech.AMS can begin to pilot ways to promote interoperability across carbon credit platforms and provide the necessar

303、y regulatory frameworks for businesses to access and trade quality credits.307.Exploring an ASEAN-wide Framework for Digital Sustainability The challenge for ASEAN to address the digital-sustainability nexus depends not only on efforts within the tech sector or the sustainability sector,but also on

304、the wider context of integration and regional cooperation.Yet the diversity among AMS needs to be considered when setting policy direction for deeper collaboration and harmonised rules for the region,and this applies to the digital sector and linkages to sustainability.One key is for AMS to understa

305、nd that the digital transformation presents an opportunity for countries to move up the value chain and better position themselves,or even leapfrog,and to further recognize that climate concerns make it imperative to address the digital-sustainability nexus.Ideally,there needs for an ASEAN roadmap o

306、n the digital economy and to develop policies and capacity to address the linkages to sustainability and climate concerns.7.1 Leveraging on ASEAN-led MechanismsASEAN Economic Community(AEC)The broad context is set by the AEC,which was formally established as a pillar of the ASEAN community in 2015 t

307、o more closely integrate the regional economies.The 2015 AEC Blueprint was developed to realise this vision,providing directions and integrative efforts to be implemented by various AEC sectoral bodies.This has been followed up in the 2025 AEC Blueprint.Following the mid-term review(MTR)of the 2025

308、Blueprint,ASEAN realized the need to consider the increasing volatile and uncertain global context,and emerging areas for action were identified including as the digital economy,sustainability and inclusivity.ASEAN recognized that the digital and green factors cut across economic sectors and also co

309、nnect to the other pillars of the ASEAN Community political-security,and socio-cultural.96 Thisincludesthe2021BandarSeriBegawanRoadmapandthe2021ASEANTaxonomyforSustainableFinance.97ASEAN,“ThreeStrategicPillarsofIndonesiasASEANChairmanship2023ontheEconomicTrack,”asean2023.id,March7,2023,https:/asean2

310、023.id/en/news/three-strategic-pillars-of-indonesias-asean-chairmanship-2023-on-the-economic-track#:text=The%20Chairmanship%20of%20ASEAN%20Indonesia.98EmbassyoftheRepublicofIndonesiaYangonMyanmar,“EmbassyoftheRepublicofIndonesiaYangonMyanmar,”KementerianLuarNegeriRepulikIndonesia,March7,2023,https:/

311、www.kemlu.go.id/yangon/en/news/23618/indonesia-must-push-sustainable-development-in-asean-official.99KementerianKominfo,“ASEANLeaderstoMeetHLTF-ACVtoDiscussthePost-2025ASEANVisionFormulation,”asean2023.id,April23,2023,https:/asean2023.id/en/news/asean-leaders-to-meet-hltf-acv-to-discuss-the-post-202

312、5-asean-vision-formulation.There is an opportunity to restructure the AEC to make it more responsive and adaptable to external challenges,allowing it to support ASEANs digital-green economic transformation.The AEC has already moved on various digital and sustainability initiatives96 and embarked on

313、several cross-cutting initiatives,like the adoption of the Framework on Circular Economy for the AEC,and the development of an ASEAN Strategy on Carbon Neutrality.The 2023 ASEAN chairman,Indonesia,aims to accelerate inclusive digital economy transformation and increase participation for sustainable

314、economic growth97.ASEAN is reviewing the AEC and has appointed a High-level Task Force on ASEAN Economic Integration(HLTF-EI)to further these discussions.Sustainable development,including the energy transition and the development of electric vehicles were issues that featured strongly in the recent

315、43rd HLTF-EI meeting98.ASEAN will take further steps to compile the ASEAN Community Post-2025 Vision towards ASEAN 204599.The recognition of the digital and green factors as cross-cutting challenges combine with 31these steps in the ASEAN process to present an opportunity for ASEAN to create element

316、s within its broader Community project that can be more responsive and adaptable to support a digital and green economic transformation.Digital Economy Framework Agreement(DEFA)The DEFA is another ASEAN work in progress and one that is more specific to the digital economy.Under the Indonesias chairm

317、anship for 2023,it is pledged as a key deliverable,with hopes to address key issues including:(a)Digital Trade and Standards;(b)Digital Payment and Identification;(c)Cybersecurity and Data Protection;(d)Digital Skills and Talent.Indonesia hopes to have a Leaders Statement on the DEFA and initiate ne

318、gotiations before the end of its chairmanship.The 3rd ASEAN Digital Ministers Meeting and Related Meetings(ADGMIN)held in February highlighted the importance of the DEFA study for the development of the framework,and this is likely to remain high on the agenda even as Singapore takes over as chair f

319、or the 4th ADGMIN in 2024100.Based on our research,some of the key issues the DEFA hopes to address would include(i)building ASEANs digital readiness for the bloc to become an innovator for digitalisation,(ii)providing connectivity through infrastructure and affordable access,(iii)enabling inter-ASE

320、AN data flows,(iv)strengthening public-private collaboration,and(v)mapping and prioritising based on the level of readiness of AMS.It is important to ensure that the DEFA addresses concerns on interoperability,and thus clear standards will need to be established for the focus areas above.In this reg

321、ard,referencing existing agreements such as DEAs will help determine how best to provide capacity building and models for the region to adopt trade terms that are beneficial for business.Subsequently,we recommend that ASEAN can follow up to integrate aspects of the green economy to the DEFA and subs

322、equent agreements.This is important to regulate and develop standards for the development and use of new green technologies in efficient ways and to achieve a scale that is effective.7.2 Building Blocks for Digital SustainabilityEstablishing a digital-green foundation for ASEAN will first be crucial

323、.While ASEAN as a whole and its member states have yet to consider these two areas in tandem,there are several commonalities between AMS National Roadmaps for Digital and Sustainability that can form the basis for developing an ASEAN-wide framework for digital sustainability.These can be seen as bui

324、lding blocks to address the digital-green nexus,and many have already been incorporated to varying extents by different AMS.For the digital economy,some examples include developing digital infrastructure,governance and skills.For the green economy,one example is the emphasis on resource and energy e

325、fficiency,and another is to create carbon markets.The table below lists a number of these building blocks that can support efforts to address the digital-green nexus in ASEAN economies.100 ASEAN,“The3rdASEANDigitalMinistersMeetingandRelatedMeetings,”February2023,https:/asean.org/wp-content/uploads/2

326、023/02/Endorsed-3rd-ADGMIN-JMS.pdf.321.Project Guardian is a collaborative initiative between the Monetary Authority of Singapore and the financial industry aimed at exploring the economic potential and use cases of asset tokenisation.It tests the feasibility of applications in asset tokenisation an

327、d decentralised finance(DeFi)while managing potential risks to financial stability and integrity.DBS Bank,JP Morgan and Marketnode will lead the first pilot101,which will explore DeFi applications in wholesale funding markets.The pilot aims to carry out secured borrowing and lending on a public bloc

328、kchain-based network through the execution of smart contracts.Examples of PPPs for Innovation:Digital Economy Infrastructure and Data Laws,Regulations and Governance Widespread Digital Adoption Digital Trade Digital Literacy and Skills Digital PaymentsGreen Economy Resource Efficiency Low-carbon Ene

329、rgy Carbon Markets(Voluntary and Compliance)Green Skills(e.g.GHG Calculation,Transition Planning)Green FinanceTable 5:Examples of building blocks in different AMS Source:Authors research from interviews101“MASpartnerstheindustrytopilotusecasesindigitalassets,”MAS,31May2022,https:/www.mas.gov.sg/news

330、/media-releases/2022/mas-partners-the-industry-to-pilot-use-cases-in-digital-assets.Public-Private Partnerships(PPPs)While governments in ASEAN must take the lead,there is much to be gained from PPPs to address the digital-green nexus.Collaboration and cooperation between the public and private sect

331、or will be crucial for progress to be made on these building blocks,particularly in the aspects of innovation and inclusion.Indeed the private sector is often likely to be the first mover in these sectors.Nevertheless,there remains a need for government support either in terms of taking the first lo

332、sses or in providing funding for training.Thus,PPPs will be fundamental to the growth of the digital-green economy.While the private sector has been actively involved in the digital and green economies in most AMS,collaborations tend to be on a project-by-project basis,or after a draft of a policy h

333、as been formulated.While this has been relatively successful to date,the dynamic nature of the digital and green economies,and by extension,the digital-sustainability nexus,will require subsequent frameworks to be agile and flexible.Innovation:There is a need to set the right policy paradigm to foster innovation.This could look like establishing an iterative policy development process involving th