Indonesia can be competitive in the global low-carbon transition by taking advantage of key market opportunities in geothermal, energy storage and industrial efficiency. Our analysis with Vivid Economics highlights how a low-carbon industrial strategy can help realign Indonesia’s economy towards these increasingly profitable sectors and leverage their strengths to improve its position in the ‘green race’. Further, Indonesia should not delay its efforts to scale up low-carbon industries, given the benefits a low-carbon industrial strategy can deliver for economic diversification and growth.
Vietnam stands at an inflection point, primed to take advantage of strong policies and human and natural capital to build its competitive advantage in a low-carbon economy. Our analysis with Vivid Economics highlights how Vietnam is already a specialist in components required for smart grids and energy storage with promising opportunities in other technologies such as solar PV and wind power. A low-carbon industrial strategy can help realign Vietnam’s economy towards these increasingly profitable sectors and help maintain its high economic growth. If implemented, Vietnam stands to gain substantially from this strategy, with some estimates indicating savings of over US$23 billion to 2030. These savings are predicted to come from a renewables-led pathway where renewable energy generation capacity will quadruple in the same period.