Energy transition in Asia will take and achieve ambitious global climate goals. The clean energy transition is also required to reduce poverty and create jobs
FREMONT CA: Asia, which accounts for about half of global energy demand and is now the world's largest polluting area, surpassing past major emitters in North America and Europe, is important for the clean energy transition. China, India, Indonesia, Vietnam, and Bangladesh are five instances across the continent. These countries account for over 43 percent of the global population and over 35 percent of global energy usage.
China stated its intention to achieve carbon neutrality by 2060, a significant follow-up to its prior commitment to peak carbon emissions by 2030. The world's second-largest economy is committed to stopping developing coal plants in other countries, albeit the details are yet unknown. Renewable Portfolio Standards have been in place in China, requiring grid operators, power businesses, and major customers to get a minimum amount of their electricity from renewable sources. In early 2021, a nationwide carbon-trading scheme was launched, followed by a green power trading pilot program in 17 provinces in China.
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Southeast Asia's energy demand is expected to expand fast, about 60 percent between 2022 and 2040. Much of this growth will be driven by Indonesia, the region's largest economy by far. At COP26, Indonesia pledged to phase out coal by the 2040s, expanding on a primary goal to achieve net-zero emissions by 2060. With fossil fuels accounting for 87 percent of capacity, the country is still far from that goal. Indonesia, on the other hand, benefits from its location atop the Pacific Ring of Fire, an area rife with tectonic and volcanic activity. With the resource, the island nation now has the world's greatest geothermal potential.
Another country that agreed to phase out coal at COP26 is Vietnam, which has pledged to achieve net-zero by 2050, subject to international help, as Indonesia has. Compared to larger countries, Vietnam has made remarkable progress on sustainable energy as a medium-sized economy. Many of the top markets for renewable energy investment fell in 2020, but Vietnam stood out as the third-largest globally, with an 89 percent gain.
Bangladesh, unlike Vietnam, has not yet advanced to the forefront of sustainable energy action. While Bangladesh has made significant socio-economic progress in recent decades, it still faces several development obstacles, including a population below the national poverty line and growing urbanization. Despite significant improvements in access to power, renewables still make for only 3 percent of the energy mix, significantly less than Bangladesh's original aim of 10 percent.