Green economy offers path

Investing in ecosystem restoration could generate billions in economic activity across Southeast Asia while protecting communities from worsening climate risks, according to research presented at Bangkok Climate Action Week 2026.

Indonesian research organization Center of Economic and Law Studies estimated that adopting restorative economic practices could generate Rp 2,208 trillion, or approximately P8 trillion, in economic output for Indonesia over 25 years.

The study also projected a potential 15 percent reduction in income inequality.

The findings were presented as regional organizations pushed for a shift toward a restorative economy, where economic development supports the recovery of forests, watersheds and other natural resources rather than relying primarily on their extraction.

For the Philippines, which faces frequent typhoons, flooding and other climate-related disasters, the approach offers a potential framework for strengthening environmental protection while creating economic opportunities.

At the event, researchers and policymakers discussed financing mechanisms that could direct investments toward environmental restoration and communities vulnerable to climate change.

These included ecological fiscal transfers, environmental taxes and policies linking government funding to environmental performance.

“We must elevate the nature-based economy beyond basic conservation and position it at the center of national economic strategy,” said CELIOS executive director Bhima Yudhistira.

“Through equitable fiscal mechanisms and transparent benefit-sharing, we can attract capital while ensuring transition dividends directly enrich local communities on the frontline.”

Indonesia’s implementation of ecological fiscal transfers across 43 subnational governments was highlighted as an example of connecting environmental performance with public financing.

Meanwhile, Cendekia Iklim Indonesia emphasized the economic benefits of watershed restoration and agroforestry.

The organization cited agricultural initiatives involving coffee and macadamia production in Thailand’s Doi Tung region as examples of combining environmental rehabilitation with sustainable livelihoods.

Participants also examined how biodiversity-based enterprises, local producers and impact investors could contribute to a broader green economy.

Koalisi Ekonomi Membumi executive director Fito Rahdianto called for stronger collaboration among governments, businesses and communities.

“Climate action strategies cannot operate in isolation; they require active, cross-sector collaboration,” Rahdianto said.