Asian Nations Can Direct Colossal Savings Into New Energy, Zhou Xiaochuan Says

At the Boao Forum for Asia conference in Saudi Arabia, Zhou Xiaochuan, a former Chinese central bank governor, emphasized the need for Asian countries to utilize their substantial savings for investments in renewable energy. He highlighted that both East and West Asia possess significant savings and investors are looking for opportunities that offer good returns [para. 1][para. 2]. Zhou suggested the creation of an incentivizing mechanism to channel these funds towards supporting the global shift to renewable energy [para. 3].

Despite existing investments from various entities, including sovereign wealth funds in the green energy sector, there is still a considerable shortfall in global climate financing. Zhou proposed price-based mechanisms like carbon taxes and emission trading systems as solutions, especially in rapidly industrializing regions such as Southeast Asia that consume large amounts of energy [para. 4][para. 5].

Zhou also cautioned against rushing the green transition without adequate preparation. He argued that premature reduction of fossil fuels before securing sufficient renewable resources could hinder economic growth and disrupt ordinary lives, potentially causing a loss of public support for carbon reduction initiatives [para. 6].