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AI Investment for Climate Sustainability in Emerging Asia

The application of artificial intelligence (AI) to business and technological activities is fairly recent, and its scope, so far, has been limited.

However, the emergence of generative AI, exemplified by ChatGPT, highlights AI’s growing significance as a mainstream technology in the 21st century. Amidst the critical global challenge of reducing greenhouse gas emissions and mitigating climate change impacts, AI technologies offer promising solutions through enhanced energy management, waste reduction, and resource optimization.


This paper focuses on emerging Asia, which we define as high-growth economies such as Southeast Asia, the Middle East, and India. These regions and countries are characterized by robust economic growth, large populations, urbanization, and technological advancement, thus creating fertile ground for pioneering technologies such as AI.


On the other hand, the region faces significant climate change threats, with a high risk of extreme weather events. Moreover, social and economic conditions in these nations make them more vulnerable to climate impacts compared to developed countries. This paper delves into case studies from Singapore, Hong Kong, and Israel to serve as representative examples of the emerging Asian context.


Drawing insights from Earth Venture Capital (Earth VC), a venture capital firm dedicated to climate tech investment, this study reviews recent AI advancements and their applications in various sectors including energy management, mobility, agricultural precision, and waste collection.


It also explores the challenges and limitations of AI adoption for climate sustainability in emerging Asia, such as concerns about data privacy. Furthermore, the paper outlines expectations and potential outcomes for each approach and concludes that investing in AI for climate sustainability holds significant promise for achieving climate targets and fostering economic opportunities.


In light of these findings, the paper recommends that policymakers encourage climate investment by incentivizing investors to increase funding for AI research and development, reinforcing collaboration among stakeholders, and establishing ethical guidelines to ensure responsible Artificial Intelligence deployment.





 

This brief is produced under the AI + Climate Futures in Asia project. Supported by the Rockefeller Foundation, Digital Futures Lab has examined the opportunities, risks, and challenges at the intersection of AI and Climate Action in Asia. Project outputs and findings are available on this dedicated project website: https://www.climateai.asia/

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