Despite an increased reliance on carbon-heavy sources, green technology is acquiring a monumental space in energy consumption.
FREMONT, CA: Despite a huge reliance on carbon-heavy technologies, green technology-oriented industries have been gaining momentum in recent periods. As a result, mid-sized companies generating renewable sources are surging on an increased scale, with nearly 25 green businesses acquainted with the global unicorn club over a combined valuation that exceeds 70 billion USD. Similarly, an increase in green investment activity is highly noticeable in the current scenario, where their deals have burgeoned by 67 per cent and are likely to accelerate further.
The stakes in sustainability-themed startups have levelled up to two billion USD, involving conventional deals across various arenas. Thus, the APAC region is experiencing a rapid rise in the investment zone and is likely to lead the market in future years. This potential development favours a tenfold increase in startup activities due to which Asia is emerging as a latent contributor in the energy services domain. A plausible advancement in technology, financing, and regulatory policies enables a proficient opportunity in the building of green businesses with an increased concentration in the energy industry. Therefore, Asian energy players are urged to deploy these ideologies to thrive globally.
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The contribution of energy sector end-users like transportation and power generation has been increasing in recent times, covering about two-thirds of the global emissions despite fossil fuels' securing a primary space in the energy supply. Furthermore, due to technological advancements and government policies, achieving sustainability in the discipline has become a primary focus. As a result, governments in APAC are increasingly contributing to achieving carbon neutrality, though most regions have yet to adapt, while others are already emerging as carbon-free countries.
Moreover, consumers are highly concerned with the credibility of the brands they use and their environmental impacts. Certainly, energy-related industries often undergo impacts via power generation, where despite the regional differences, global coal consumption has been at a peak for over a decade. The growth of renewable energy sources, instigated recently, is likely to take over half the responsibility of power generation in the future due to the fact that fossil fuel stains will remain.
Another potential consequence of international regulation to reduce sulphur emissions is a shift in marine fuel consumption from high-to low-sulphur content oil. Alongside this, the pressure of decarbonising has stimulated the development of alternative fuels like liquefied natural gas (LNG), ammonia, and hydrogen. Meanwhile, road transport holds a crucial impact as peak oil demand is anticipated to surge further in the upcoming years. Therefore, a major shift from internal combustion engines (ICEs) to hybrid and electric vehicles (EVs) is likely to evolve in the next decades.
Thus, Asia is emerging as a frontier in green energy and related heavy industry acceleration owing to an increased focus on renewable energy and electric vehicles.