APEC can be part of solution to PH economic crisis

COMPLEMENTARY policies are needed as Asia-Pacific Economic Cooperation (APEC) member economies embark on structural reforms to promote a sustainable recovery from the Covid-19 pandemic and future economic shocks.

The 2022 APEC Economic Report, released last week as leaders of the regional economic forum met in Bangkok, called for further green initiatives that could be facilitated through fewer regulatory barriers, improved access to credit and the promotion of sustainable finance alignment tools.

“Structural reform will be required as a response to the economic slowdown caused by Covid-19, and actions to combat climate change and other environmental challenges have become significantly more urgent,” the report said.

More is needed, in particular, with regard to getting a better understanding of the process to develop and implement green regulatory measures.

“The participation of the business community and consumers is important in transforming the economy into a greener one. Resolving environmental challenges is a long-term process and policy uncertainty is one of the main barriers to transitioning to a green economy,” the report said.

“Skills in the government and private sector are also critical to the implementation of effective green structural reforms and integral to the transition toward a low-carbon economy,” it added.

Structural reforms can be supported by incentivizing green innovation and technologies, developing new sectors, and smoothing the transition for workers and industries by helping them adjust to new conditions.

“Competitive product and services markets are important to foster green innovation and technology adoption, and remove barriers to entry, particularly for small, innovative firms,” the report said.

“Innovation will be critical to increase productivity and dynamism in this new context.”