Drivers of Local Economic Growth

The geography of energy is shifting, and Asia is at the tectonic centre of the change.    As the drama of the climate transition plays out across the world’s largest continent, you can see it first hand in entrepôts like Singapore, which I visited not so long ago. Around one fifth of the world’s energy and metals trade passes through the city’s port and financial markets, in part because the Asia Pacific region has dominated investment in critical materials over the last decade.  That strong demand follows the adoption of solar panels, electric vehicles, and battery storage, each of which depend on sourcing vastly more of the minerals required to build them: copper, lithium, nickel, cobalt, aluminium, and rare earths. The average BYD or Tesla electric vehicle requires six times more mineral inputs than a conventional car.  Asia will need to import and extract these minerals in huge quantities to meet climate targets. Supply chains will reshape around the regions producing and processing these metals, many of which are geographically concentrated. Resource-rich Asian economies are using their deposits to drive growth.     Asian battery makers and miners are also developing advanced recycling techniques to meet this growth in demand more sustainably – by 2050 nearly half of all nickel demand could be met by recycled metals. One example is a company promoting sustainable solutions for lithium-ion batteries called Green Li-ion, so valuable materials within batteries can be reclaimed and reused efficiently. HSBC is supporting the Singaporean founded company through a green trade facility.   Indonesia has become the leading producer of battery metals, while Malaysia looks to benefit from rare earths investments. China is a dominant player, particularly in electric vehicles and the components of solar panels. As trade patterns evolve, producers such as Japan and the Philippines could play greater roles. Australia is already a commodities powerhouse and could become the world’s largest hydrogen exporter.    For many decades, exports of oil and gas shaped trade and geopolitics. In an era of energy transition, economies across the Asia Pacific region are primed to play a greater role. HSBC is primed to help.    #HSBC #climateaction #sustainability David Liao

A sustainable future for agriculture depends on aligning digital solutions with strong data layers and an enabling context where technology, infrastructure, policies, and human capital create resilience for farmers and markets. Looking at the evolution of agriculture, we see how deeply the sector is shaped by digital layers that connect advisory services, smart farming, supply chains, and financial access. Each element gains relevance only when supported by an environment that integrates reliable infrastructure, fair markets, and clear policies. Data flows, integration platforms, and analytics are not abstract elements. They provide farmers with timely knowledge, facilitate transparent transactions, and open access to capital. Around these elements, technologies and human skills amplify impact, shaping ecosystems that can adapt to climate, market, and social pressures. I believe the future of agriculture depends on this synergy. It is not a question of adding more technology, but of creating a fabric where solutions, digital tools, and policies operate in balance. Reflection on this point is essential for anyone interested in the resilience of global food systems. #DigitalAgriculture #SmartFarming #Sustainability #AgriTech #FutureofFood

The agri-food system is at a pivotal moment—facing rising demand, climate pressures, resource constraints, and the urgent need to cut emissions. To build a resilient, future-proof food system, we must shift from extractive practices to regenerative agriculture at scale. 🚜 This is not just an opportunity—it’s a necessity. Our latest report, produced by Boston Consulting Group (BCG) in collaboration with OP2B and supported by Carlsberg Group, lays out a bold roadmap for scaling regenerative agriculture across Europe. We identify four key drivers for success: 🔹 Sustainable Economics – Ensuring financial viability for farmers. 🔹 Cross-Value Chain Partnerships – Driving collaboration for real impact. 🔹 Standardized Metrics – Creating clear, outcome-based measurements. 🔹 Farmer Training – Equipping farmers with the knowledge and tools to transition. And one essential enabler: Supportive Policy Frameworks. Strong policy alignment is critical to accelerate adoption and ensure long-term success. 🌍 This is the time to act. We must move beyond pilot projects and fragmented efforts—working together to define clear standards, align policies, and create a system where regenerative farming thrives. 📖 Read the full report here: https://lnkd.in/ezNHiJKn Grateful to my co-authors Casper Zulim de Swarte, Louise Berrebi, Jack Bugas, Peter Jonathan Jameson, Shalini Unnikrishnan, and to Simon Boas Hoffmeyer and Ema Radmilovic at Carlsberg Group for their contributions. 💡 What will it take to make regenerative agriculture the new standard? Let’s drive the conversation forward. 👇 #RegenerativeAgriculture #SustainableFarming #FutureOfFood #ClimateAction #AgricultureInnovation #RegenerativeAgriculture #SustainableFarming #FutureOfFood #ClimateAction #AgricultureInnovation #FoodSecurity #ResilientFoodSystems #SustainableAgriculture #FarmingForTheFuture #SoilHealth #Biodiversity #CarbonFarming #AgriTech #GreenTransition #SustainabilityLeadership #PolicyForChange #FarmersFirst #NatureBasedSolutions #CircularEconomy #AgriFoodTransformation Trine Filtenborg de Nully Mikkel Pedersen Hubertus Meinecke Jan Philipp Bender Eden Cottee-Jones Vuk Trifkovic Jesper Nielsen Andreas Husted Malby Jonas Sommer Lorentzen Gertie Find Laerkholm Thomas Møller Jensen Nanna Gelebo Fanny Grönlund (Sjöberg) David Sandberg

Relatively small amounts of critical minerals underpin trillions of dollars in economic value globally. New IEA analysis highlights growing risks, including export controls, although countries are also taking steps to make supply chains more secure 👉 https://iea.li/4aTpQ33 The geographic concentration of critical mineral supply chains continues to grow, particularly for refining. Rare earths are the exception. The top supplier's share fell from 90% in 2023 to 85% in 2025, showing progress is possible with strong policies. Read more in the International Energy Agency (IEA)’s Global Critical Minerals Outlook 2026 👉 https://iea.li/4bNpwDh While critical mineral projects are being announced & developed across the globe, we see a structural imbalance in diversification efforts. Investment outside the dominant supplier remains concentrated in mining, while efforts to expand refining & downstream capacity lag behind. In a complex geopolitical environment, critical minerals have moved to the forefront of countries’ energy, economic & national security agendas. This is making a difference: public finance commitments more than quadrupled between 2023 and 2025, reaching $65 billion. New IEA analysis also sees a major opportunity to diversify supplies of strategic minor minerals. The investment needed is much smaller than the potential risks of disruption and can be seen as economic insurance. Since #CriticalMinerals account for a small share of final product prices, the cost of diversification could have a limited impact on consumers. For example, critical minerals account for around a quarter of battery cell costs but only about 3% of the price of an average EV. Diversified supply is not only a matter of investment: it also means tackling gaps in technology, equipment & workforce skills. Our new Global Critical Minerals Outlook 2026 includes guidance for policymakers on this & more. Read it in full on our site 👉 https://iea.li/4bNpwDh

The Union Budget’s announcement to develop dedicated rare earth and #criticalmineral corridors across #TamilNadu, #Kerala, #Odisha, and #AndhraPradesh comes at a decisive moment for India and the global economy. This initiative is not merely about mining - it is about strategic autonomy, clean industrial growth, and long-term economic resilience. Today, China controls over 60% of global rare earth mining and nearly 85% of processing capacity, creating significant supply-chain vulnerabilities for clean energy, electric mobility, electronics, defence systems, and advanced manufacturing. In contrast, countries such as the United States, Australia, and the European Union are aggressively building domestic capabilities, strategic reserves, and recycling ecosystems to reduce dependence on concentrated supply sources. Rare earth elements are essential inputs for EV motors, wind turbines, solar technologies, semiconductors, batteries, defence electronics, and medical equipment. As India targets large-scale EV adoption, renewable energy expansion, and domestic semiconductor manufacturing, secure access to critical minerals becomes non-negotiable. The proposed corridors—spanning mining, processing, R&D, and manufacturing create an integrated ecosystem rather than fragmented interventions. Equally important is the opportunity to supplement primary mining with secondary sources. Estimates indicate that India’s e-waste alone could yield nearly 1,300 tonnes of rare earth elements, while mine tailings and industrial waste offer additional recovery potential. Last year’s ₹1,500 crore allocation for extracting critical minerals from waste streams was an important start, but scale, coordination, and regulatory clarity are now essential to unlock meaningful impact. The regulatory framework must evolve accordingly. E-waste Management Rules should clearly classify critical minerals as high-value strategic resources, not residual waste. Extended Producer Responsibility (EPR) frameworks must go beyond compliance and actively incentivise recovery, recycling, and reuse. At the same time, India’s large informal recycling sector—currently operating without safety nets must be formalised through technology transfer, skilling, access to finance, and transition incentives, ensuring both environmental protection and dignified livelihoods. From an economic and urban governance perspective, the implications are significant. Rare earth corridors can catalyse clean manufacturing clusters, generate high-skill employment, and reduce import dependence. Cities and industrial regions will benefit from value-added manufacturing, innovation ecosystems, and circular-economy models that align growth. If executed with coordination and clarity, this initiative can deliver multiple dividends: lower emissions, reduced waste, enhanced competitiveness, skilled job creation, and greater self-reliance.

Critical minerals are no longer simply natural resources. They are becoming strategic infrastructure. As industries accelerate investment in AI, advanced manufacturing, electrification, semiconductors, and next-generation technologies, access to critical minerals is emerging as a defining component of long-term competitiveness. Mineral reserves do not automatically translate into economic advantage. Extraction capacity, processing capability, infrastructure, investment, governance, and resilient supply chains all influence how those resources create value. For business leaders, this extends well beyond the mining sector.  Many organizations now operate in industries that depend on supply chains built around materials they neither produce nor directly control. Understanding where critical resources originate—and how those ecosystems evolve—is an essential element of long-term strategy and operational resilience. Competitive advantage is increasingly shaped not only by innovation, but by the ability to secure the capabilities and resources that make innovation possible.

Transforming Agriculture: Key to Achieving Viksit Bharat by 2047 As we march towards the monumental milestone of India's 100th year of independence, it's imperative to reflect on the path forward. In envisioning a Viksit Bharat by 2047, one crucial aspect stands out: the transformation of agriculture. Recently had an opportunity to address a large gathering of students from across the country as part of the "Transcendence..Xenz: National Conference on Agenda of Viksit Bharat 2047" at the Kadi Sarva Vishwavidyalaya. I thank Dr. Bhavin Pandya and the organizers for the opportunity to engage with the young minds and motivate them to make a career in agriculture. Agriculture has been the backbone of India's economy for centuries, employing a significant portion of our population and contributing significantly to our GDP. However, to propel India into a developed nation status with an anticipated GDP of USD 30 trillion, we must reimagine and revitalize our agricultural sector. Some key points to consider: 1. Modernization and Technology Integration: Embracing modern agricultural practices and leveraging cutting-edge technologies such as precision farming, IoT, and AI can revolutionize productivity and efficiency. Empowering farmers with access to these tools can lead to sustainable growth and increased yields. 2. Infrastructure Development: Enhancing rural infrastructure including irrigation systems, transportation networks, and storage facilities is paramount. Improving connectivity and access to markets will enable farmers to sell their produce at fair prices and reduce post-harvest losses. 3. Diversification and Sustainable Practices: Encouraging crop diversification and promoting sustainable farming techniques can mitigate risks associated with climate change and ensure long-term viability. Embracing organic farming and agroforestry can enhance soil health, conserve water, and preserve biodiversity. 4. Market Reforms and Agribusiness: Implementing policy reforms to liberalize agricultural markets and facilitate private investment can spur growth and innovation. Encouraging the development of agribusinesses and food processing industries can add value to agricultural products and create employment opportunities. 5. Skill Development and Education: Investing in agricultural education and training programs can empower the next generation with the knowledge and skills needed to adopt modern practices. Promoting entrepreneurship in agriculture can unlock the potential for agri-startups and agri-tech ventures. Achieving Viksit Bharat by 2047 necessitates a paradigm shift in how we approach agriculture. By embracing innovation, sustainability, and inclusivity, we can unleash the full potential of our agricultural sector and pave the way for a prosperous and resilient India. Let us embark on this transformative journey together, ensuring that no farmer is left behind, and realizing the vision of a vibrant and thriving Bharat.

Critical minerals will play an increasingly central role in the global energy transition — provided their extraction is carried out in a sustainable and inclusive way. In this context, #Australia will have a central role in global climate discussions as a leader in the #COP31 climate negotiation process. Some regional experiences within Australia already offer useful insights into how to structure an economic transition in regions historically dependent on fossil fuels. One example is the town of Collie, in Western Australia, traditionally linked to coal mining and coal-fired power generation. The region has implemented a Just Transition Plan that mobilizes more than A$700 million in public investment to diversify the local economy and create new employment opportunities. This was the central topic of my meeting with David Michael, Minister for Mines and Petroleum of Western Australia. We discussed the opportunities associated with decarbonization and the energy transition, and how regional experiences such as Collie can help inform broader debates about the future of resource-dependent economies through Australia’s presidency of the COP31 climate negotiations. Just transition strategies tend to share several core elements: - support for workforce reskilling - investment attraction mechanisms for manufacturing and energy storage industries - economic diversification, including tourism and new productive sectors - community-led planning with integrated governance As global demand for critical minerals grows, the challenge is not only to increase production, but also to ensure that the #energytransition generates lasting #prosperity in the regions where these resources are extracted.

🛫 Asia’s travel boom is a tipping point - and a test. Tourism in APAC is a US$3T engine (10% of GDP), supporting 185M jobs and welcoming 650M visitors. But growth without design can concentrate benefits in a few hotspots, strain infrastructure, price out locals, and trigger boom–bust cycles. Given tourism’s weight in our economies, we must build now so its benefits are lasting and widely shared.   This week, I spoke about the future of tourism at the Singapore Hotel Association's Hospitality Exchange 2025. Here are some of the thoughts I shared on what this “building” should look like:   🔍 Move beyond headcounts: Today, anonymized spend data can reveal where visitors go, how they move, and what they value. These insights help destinations anticipate demand, guide flows, and protect fragile sites before congestion hits.   🌐 Reimagine travel hubs as launchpads: Not just arrival points, but orchestrators of regional tourism, connecting visitors to lesser-known destinations and easing pressure on city centers and mainstream attractions.    🚆Build layered connectivity: Invest in and integrate hard infrastructure like airports with regional flight connectivity, high-speed rail, and room capacity, with soft infrastructure like digital readiness in the form of interoperable payment 💳 and transit systems to enable seamless journeys for tourists and locals alike.   🤖 Activate AI agents: Shift from search to end-to-end curation—connecting travelers with authentic, purpose-driven experiences, enabling seamless navigation, and dynamically managing visitor flows. It’s the new paradigm for smarter, more sustainable tourism.   The goal: tourism that enriches communities, preserves culture, and strengthens local economies. More than riding the wave, this is how Asia can define the next era of global travel.

When discussions around foreign exchange earnings come up, the focus is usually on exports, foreign direct investment, or portfolio flows. Far less attention is paid to a simpler question: How much money do foreigners spend inside India? In 2024, international visitors spent roughly $35 billion in India. That sounds substantial until you compare it with what is possible. If India had attracted twice as many visitors and doubled those earnings, the additional inflows could have more than offset the country's current account deficit for the year. That changes the conversation entirely. Because this is no longer just a tourism story. It is an economic competitiveness story. The experience of other large economies is instructive. Among countries with GDP exceeding $100 billion, international tourism contributes more than 10% of GDP in the UAE, nearly 10% in Portugal, and around 9% in Morocco and Greece. Even advanced economies such as Spain, Singapore, Austria, and Thailand derive roughly 5-8% of their GDP from international visitor spending. In other words, tourism is not merely supporting these economies. It is a meaningful pillar of economic activity, foreign exchange earnings, and employment. Countries such as Singapore, Thailand, Malaysia, Vietnam and the UAE have understood that visitors do not spend money only at monuments, beaches or heritage sites. They spend money in cities. On restaurants, shopping, entertainment, healthcare, education, transport and everyday experiences. People visit Paris to experience Paris. People visit New York to experience New York. Very few people visit Indian cities for that reason. Which raises an uncomfortable question. If India is among the world's fastest-growing major economies, why are so few of our cities global destinations in their own right? Urban infrastructure is often discussed as a quality-of-life issue. It is also a balance-of-payments issue. Every cleaner street, safer public space, better transport system and more walkable neighbourhood improves life for residents. It also makes the country more attractive to global visitors and brings foreign exchange earnings with it. Sometimes macroeconomic strength is not created through complex policy interventions. It comes from getting the fundamentals of city-building right. Thoughts?