The region accounts for just 37 billion dollars of the 600 billion-dollar global market for environmental goods and services, but its fast growth rate of between eight and 12 percent should triple market size by 2015, according to an ADB study.

The ADB's Asian Environment Outlook 2005 report said that after governments took notice, it was time for the private sector to follow the lead.

"We now see that governments across our region -- from India, to Thailand, to the People's Republic of China -- are increasingly ready to take on environmental challenges," said Nessim Ahmad of the ADB's environment and social safeguards division.

"Enforcement of pollution control laws is tightening, budgets for environmental protection are increasing, and judiciaries are taking tougher stances," he added.

"The improved environmental quality demanded by the public will require investment in wastewater treatment, solid waste management, sustainable public transport, and clean, renewable energy systems -- all of which are critical to the economic and environmental future of the region."

Ahmad said Asian consumers are now also demanding greener and more environment-friendly products.