Southeast Asia’s Green Energy Industry Fuels Employment

Southeast Asian countries have discovered a lucrative new sector – biofuels, reports the Economist. Palm oil can be turned into biodiesel, which promises to be a cheaper and more environmentally sound energy alternative. Besides reducing dependence on oil and gas, biofuel production helps boost trade surpluses and create employment.

In fact, Indonesia’s biofuel sector already employs 1.5 million people, and with the $110 million in aid the government promised its palm farmers, the number is expected to grow. Meanwhile, Malaysia has already approved 52 new biodiesel plants, which are needed to meet the orders pouring in from the EU and Japan. Neighboring Thailand, Myanmar, and the Philippines are also investing in biofuel plantations. Singapore will be doing refining for producer countries.

Two drawbacks: the time it takes for oil palms to grow fruit and, that as the price of palm oil goes up, food and other cooking oils become more expensive for the poor.