Injecting momentum into global economic recovery and sustainable growth

According to the International Monetary Fund’s forecast, GDP in the RCEP region will grow by USD 10.9 trillion between 2023 and 2029, contributing over 40% to global growth. 'The next few years will be a critical period for RCEP development. Firmly supporting and fully implementing RCEP at a high quality level demonstrates China’s determination and capacity to advance open cooperation,' said Kuang Xianming, Deputy President of the China Institute for Reform and Development (Hainan) and Deputy Director of the RCEP Research Institute. 'Faced with intensifying external uncertainties, RCEP members must strengthen collective efforts, eliminate interference, jointly build a high-standard free trade zone, and shape a new future for the Asian economy.' The Boao Forum for Asia’s Annual Report on Asia’s Economic Outlook and Integration Process 2025 forecasts that Asia’s weighted real GDP growth rate will reach 4.5% in 2025, reaffirming Asia’s role as the world’s primary engine of economic growth. Zhang Yuyan, Academician of the Chinese Academy of Social Sciences and Dean of the School of International Political Economy at the University of Chinese Academy of Social Sciences, noted that Asia’s share of global economic output continues to rise: 'Measured in purchasing power parity (PPP), the combined GDP of Asian economies is projected to increase from 48.1% of the world total in 2024 to 48.6% in 2025. We have every reason to remain confident in Asia’s growth and its future.' China Leads Green Transformation Across Asia Green transformation is an indispensable pathway to sustainable development and has become a new choice for coordinated economic, social, and ecological development across an increasing number of Asian countries and regions. Robust actions by China and other Asian nations are yielding positive results. The Boao Forum for Asia’s Annual Report on Sustainable Development in Asia and the World 2025 — Climate Change Response: Asia’s Advancement of Green Development shows that Asia is forging a more dynamic and sustainable growth path by leveraging green transformation to address climate vulnerability, drive economic growth, and achieve sustainability. 'Inaction on climate change carries far higher costs than the investments required to act,' said Helena McLeod, Deputy Director-General of the Global Green Growth Institute. 'Backed by policy support, capital investment, and an innovation ecosystem, China is playing a leading role in new energy vehicles, energy storage, and renewable energy—helping position Asia as a global pioneer in green technology R&D.' Investment in clean energy continues to surge across Asia. In 2023, China accounted for one-third of global clean energy investment. Karl Fai, Professor at BI Norwegian Business School, stated that China not only leads in energy transition but also demonstrates strong willingness for international cooperation, promoting green transitions across Asia, among developing countries broadly, and globally—thereby contributing to the world’s sustainable economic growth. Biao Lu, Chief Economist of the Asian Infrastructure Investment Bank (AIIB), remarked that China’s achievements in advancing green transformation are remarkable; green energy technologies continue to evolve rapidly, and China’s green development experience offers valuable lessons for other developing countries. Enrico Giovannini, Professor of Economic Statistics at the University of Rome Tor Vergata, Italy, has visited China multiple times. He told reporters: 'Over the years, I have witnessed China’s astonishing transformations—especially those driven by advances in new energy technologies. Electric vehicles cruise city streets across China; photovoltaic and wind power plants dot the Gobi Desert and coastal tidal flats alike—China’s nationwide deployment of renewable energy infrastructure is particularly striking.'

Day Two of the 2026 Sustainable Global Leaders Summit: Experts jointly explore pathways to alleviating AI anxiety, advancing energy transition, and responding to climate change

Sun Lihui, Vice President and Chief Sustainability Officer of Huayou Cobalt, believes the most urgent action needed over the coming years is establishing comprehensive partnerships across the upstream and downstream value chain. He points out that, in recent years, upstream and downstream actors have not been on equal footing: many rules and requirements have been unilaterally imposed by downstream players—'they transmit only demands, not knowledge or capabilities.' In his view, the key task moving forward is to foster fair and equitable partnerships between upstream and downstream stakeholders—shifting from issuing demands to building capabilities and sharing knowledge, and from one-way data traceability to mutual data sharing. Zhang Kaipeng, Senior Vice President and Head of Schneider Electric’s Global Supply Chain in China, stated that green supply chains have shifted from being an 'optional choice' to a 'must-answer question' for corporate survival and development. Reflecting on years of practice, Zhang distilled the core of green supply chain development into three keywords: technological innovation as the driving force, talent development as the supporting force, and ecosystem collaboration as the unifying force. Corporate Breakthroughs: Green Development and Global Competition & Cooperation Ju Jiandong, Chair Professor at Tsinghua University’s PBC School of Finance and Director of the Center for Green Finance Research (CGFR), addressed concerns about potential overcapacity arising from accelerating green transition by two decades. He clarified that overcapacity refers to production exceeding demand—not all investment inevitably leads to overcapacity. Indeed, if investment stimulates demand, it not only avoids overcapacity but may even resolve existing overcapacity. Sequence matters: green transition should begin at the demand side—starting with residential electricity consumption, transportation electrification, and utility power use—followed by grid modernization (where the grid functions both as demand and supply), then the midstream, and finally the upstream. Once market mechanisms are fully activated, markets will precisely allocate resources, enabling rapid industry development. Chai Qimin, Vice-Chairman of the Expert Committee on Environment and Sustainable Development Technologies at the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), emphasized that carbon peak and carbon neutrality represent the largest-scale societal transformation humanity has ever undertaken—and will profoundly shape global sustainable development over the coming decades. In supporting national dual-carbon goal formulation and integrating related targets into five-year plans, scenario analysis serves as the core research methodology. Grounded in a 'What if?' logic, it assesses how changes in key variables affect costs and benefits under different development pathways, thereby informing decision-making. Similarly, the Intergovernmental Panel on Climate Change (IPCC) employs scenario-based analyses to compare the advantages, disadvantages, and cost-effectiveness of alternative pathways—factoring in discount rates, time horizons, and other integrated considerations. Peng Wensheng, Practice Professor at Shanghai Advanced Institute of Finance (SAIF), Shanghai Jiao Tong University, and Chief Economist of the SAIF Think Tank, pointed out that there are two principal models for promoting carbon reduction: the European Union model, which uses carbon trading markets and carbon pricing to raise the cost of fossil fuel use and thus reduce consumption; and China’s model, which supports emerging industries through government subsidies on the clean energy production and supply side—accelerating their development and scaling up industrial-financial integration. Li Zhiqing, Director of the Center for Environmental Economics at Fudan University and Deputy Party Secretary of the School of Economics at Fudan University, observed that data centers and computing hubs enhance human work and life efficiency—but precisely because such efficiency gains boost overall output, workload, and consumption, they inadvertently consume vast amounts of energy and resources. Thus, after societies achieve full intelligence and green transformation globally, the total volume of energy and resources required will far exceed current estimates. From this perspective, proactive, forward-looking planning is indeed essential.

Inaction Risks Greater Energy Insecurity, Costlier Transition – UN ESCAP Exec

15 hours ago

UN ESCAP warns that prioritizing short-term energy security over decarbonization risks higher costs and insecurity amid soaring global prices. She urges regional cooperation and grid investment to ensure affordable clean power access during the transition.

icis

2026-10-26

Inaction Risks Greater Energy Insecurity, Costlier Transition – UN ESCAP Exec

Inaction Risks Greater Energy Insecurity, Costlier Transition – UN ESCAP Exec

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