Digital transformation key to future-proofing climate-stressed Southeast Asia: report

Southeast Asia is a particularly vulnerable region to climate threats. Digital solutions may be key to helping the region shore up resilience against economic losses and increasing climate-induced extreme weather events.

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Women paddle a boat through a flooded street in Hoi An, Vietnam. Image: Toomas Tartes, CC BY-SA 3.0, via Unsplash.

For Southeast Asia to withstand and overcome climate shocks, it must turn to digital solutions.

Such solutions, according to a new Google and Deloitte report published last month, will help communities prepare for impending weather-related disasters, strengthen the region against climate-induced disasters, and reduce economic losses linked to extreme weather events. 

The APAC chapter of a report by the technology company and professional services firm, entitled Digital as a Key Enabler for Climate Action: The Association of Southeast Asian Nations Perspective, highlights climate change and digital progress as “interconnected” global challenges. 

The report also notes that developing APAC countries with fewer resources face greater challenges in implementing adaptation projects, all while being disproportionately susceptible to climate shocks.

Nearly 13 million people in Southeast Asia were impacted by natural disasters such as floods, typhoons, extreme temperatures and wildfires in 2022 alone, with the Asian Disaster Reduction Center’s latest Natural Disasters Data Book highlighting Asia Pacific as the most hazard-prone region globally.

Ranking among the most climate-vulnerable regions worldwide is Southeast Asia, which faces a dual challenge: adapting to climate change largely driven by emissions from advanced economies, and rethinking development approaches that are progressively exacerbating global warming.

Similarly, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the regional arm of the United Nations for the Asia Pacific region, highlights digital transformation as pivotal in achieving both, all while future-proofing cities and economies.

“[In the long run], nations that lag in terms of digital development will also face a lack of disaster prevention and preparedness, hindering their socioeconomic development,” Cristina Bernal Aparicio, co-author of UNESCAP’s Digital technologies for climate change adaptation report, told Eco-Business.

“Embracing digital technologies is not merely a technological choice but a critical determinant to strengthen resilience, reduce inequalities, and advance sustainable development in the face of evolving global challenges,” continued Bernal, who is also a consultant in climate change adaptation communications at the United Nations Framework Convention on Climate Change (UNFCCC), which is the foundational international treaty signed in 1992 providing a framework for global action on climate change. 

Weather and climate-related catastrophes are projected to shave off 11 per cent from the gross domestic product (GDP) of Southeast Asian economies by the end of the century, according to a report by the Asian Development Bank, with Southeast Asian markets standing to lose at least 37 per cent of their GDP to unmitigated climate change by 2048. 

In the most severe scenario, Indonesia, Malaysia, the Philippines, Singapore and Thailand may lose economic output totalling more than seven times their 2019 GDP by 2050 to climate-induced shocks.

Better solutions

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Google’s country managing director in Singapore Ben King highlights that digital solutions can provide developing cities with affordable access to emissions data and tools for sustainable urban planning. Image: Google Singapore

Investing in innovative early warning systems in the form of digital solutions is one effective way to offset economic risks and save lives.  

“The technology we need to address climate challenges already exists, but they need to be cascaded to less technologically mature communities to ensure an equitable future for all,” highlights Ben King, Google’s country managing director in Singapore.

As a large tech company, King added that the organisation recognises its responsibility in developing potential solutions to mitigate climate shocks, and in partnerships to enable such technology to scale.

Banking on the transformative potential of artificial intelligence (AI) in digital solutions, Google has launched several initiatives to drive climate action.

We firmly believe that the transformative power of [technology] should be harnessed for the benefit of all. By working together, with smart policies and a big-picture mindset, we can create a future that’s both digital and sustainable.

Ben King, country managing director, Google Singapore

One such solution is Flood Hub, which utilises data and AI to provide real-time alerts and forecasts on flood information up to a week in advance, allowing local governments to provide critical time for evacuation and disaster preparation.

“The breakthroughs we’re making in AI have enabled us to scale solutions that can help vulnerable communities in areas to tackle extreme weather events,” King added. 

Such solutions are proving especially helpful in Southeast Asia, with another report published by Nature noting more than a quarter of the region’s population is exposed to floods. 

“For example, we’ve developed hyper-local flood forecasting models with AI to forecast where riverine floods will occur, which is currently available in flood-prone places like India, Thailand and Vietnam,” said King. 

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Flood Hub is part of Google’s crisis response work to provide people access to trusted information and resources in critical moments. Image: Google

The company also strives to reduce emissions in cities through its solution Project Green Light, which uses AI and data from Google Maps to analyse traffic patterns and provide recommendations to city traffic engineers on adjusting traffic light timing.

Project Green Light is now used across 70 intersections in 12 cities including Manchester, Rio de Janeiro and Jakarta. Initial data from the 12 cities where the system has been deployed since 2023 indicates a potential 30 per cent reduction in vehicle stops and a 10 per cent decrease in emissions at intersections.

“By optimising not just one intersection, but coordinating across several adjacent intersections to create waves of green lights, cities can improve traffic flow and further reduce stop-and-go emissions,” explained King. 

Digital solutions can also provide cities – especially developing cities – with affordable access to emissions data, allowing them to measure and address their carbon emissions, King adds. 

Google’s Environmental Insights Explorer (EIE), for example, can estimate annual vehicle trips, be it by car, bus, bike, or distance travelled, and then multiply this data to help individuals calculate emissions. 

To track building emissions, such tools can convert building carbon footprint data into energy use estimates using data on building energy performance, and then calculate those emissions using emissions factors, according to Google.

Such tools can essentially help cities establish emissions baselines, identify emissions sources, and influence climate-related regulation, noted King. “With EIE, we hope to empower policymakers and governments around the world to understand their environmental impact and develop effective climate action plans,” he said.

The full report, which was released on 9 September, explored how digital technologies can be leveraged to address climate challenges via three main climate action pillars: mitigation, adaptation and resilience, and foundation.

Low-carbon future

While effective, digital technologies must be scaled to bring tangible results in Southeast Asia, King noted.

“If brought to scale, digital technologies could reduce emissions by 20 per cent by 2050 in the three highest-emitting sectors: energy, materials, and mobility.”

Beyond digital solutions, Bernal highlights the importance of climate-focused policies and increased funding, which will help Southeast Asia to fund innovation, decarbonise, and shore up its resilience to climate change. 

“In APAC countries, supporting digitalisation and innovation will be crucial to effective climate action and adaptation,” she said. “The development policies that mainstream both climate adaptation and the use of digital technologies not only strengthen governments’ commitment to adapting to climate change but also ensures that these projects are prioritised to receive funding and human capital for successful implementation.”

Data, however, suggests that much more expertise is needed for further developments. 

For example, Singapore needs a 55 per cent boost in its digital workforce by 2025, while Indonesia requires an additional 600,000 digital talents yearly up to 2030.  

To maximise the impact of digital transformation on Southeast Asia’s climate resilience, areas such as digital skills, talent, and maturity must be improved upon alongside strategic digital measures in climate monitoring, infrastructure, and innovation, highlights the APAC chapter of the report by Google and Deloitte

In this report, Google also presents its Digital Sprinters Framework as a structured blueprint for emerging countries to accelerate their digital transformation.

The shift will entail investment by governments and the private sector in the four primary categories of infrastructure, people, technological innovation, and public policies. Each category addresses specific aspects of policy that can facilitate sustainable and inclusive economic growth while harnessing the power of digital transformation.

“We firmly believe that the transformative power of [technology] should be harnessed for the benefit of all and recognise that unlocking the true potential of this technology lies in ensuring its equitable and widespread accessibility,” King concluded.

“By working together, with smart policies and a big-picture mindset, we can create a future that’s both digital and sustainable.”

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