21/06/2021
SANDY GWEE, PRIMARY CONSULTANT, NOMURA RESEARCH INSTITUTE SINGAPORE
https://www.pv-magazine.com/2021/06/21/carbon-neutrality-and-solars-role-in-asean-nations/
The Paris Agreement was signed by all ASEAN countries and most members declared carbon emission reduction targets. Differences in energy transition readiness among ASEAN members are reflected in their nationally determined contributions (NDC) targets for greenhouse gas mitigation. One win for the renewable energy transition is harnessing solar power from the region's abundant resources.
Rooftop solar power has competitive costs, serving concentrated needs in cities and industrial parks industry in ASEAN, as well as needs in remote areas.
Photo: Constant Energy
ASEAN's carbon neutrality situation
According to a report by the International Energy Agency (IEA), energy demand in Southeast Asia will grow by 60% in the next two decades. The power sector will be responsible for just under half of the region's carbon dioxide emissions by 2040, which was around 42% in 2019.
Climate change is a major concern for ASEAN as the Philippines, Myanmar and Vietnam are ranked in the top 10 countries in the world in terms of adverse impacts of climate change. In many ASEAN countries, rising sea levels pose worrying threats to low-lying coastal cities and large areas of agricultural land at risk of flooding.
To accelerate green growth efforts, ASEAN needs to commit to net zero emissions and carbon neutrality targets sooner. Carbon neutrality will reduce risks and enhance the competitiveness of businesses, which will increase the attractiveness of foreign direct investments and promote financial growth. green.
While it is necessary to establish appropriate targets and mechanisms, the path towards carbon neutrality will require the efforts of many stakeholders such as governments, companies and communities.
The importance of carbon markets
Navigating a carbon neutral path will require ASEAN to develop a coordinated carbon market, starting with the implementation of a carbon tax and mechanisms to support a zero emissions path carbon.
In ASEAN, the carbon market is in its early stages, with only Singapore applying an economy-wide carbon tax. Vietnam recently passed a revised Environmental Protection Law that will legalize emissions trading schemes, which will take effect on January 1, 1. Other ASEAN countries are also moving towards on the same side: Thailand is considering enacting a carbon market and Indonesia has put forward proposals to implement a carbon tax.
In Europe, carbon prices have more than doubled from a year ago as regulations on carbon emissions continue to tighten. If this price is used as a reference point for ASEAN, increasing pressure on businesses to make green commitments and be transparent in reporting could ensure efficiency in the carbon market.
Smarter cities play a very important role
As ASEAN urbanizes, governments should implement the concept of smart city development to optimize outcomes and limit carbon footprints.[1] (carbon footprint) through efficient use of resources. Sustainability has become a key feature of urbanization and master planning for ASEAN's major cities, incorporating features such as green spaces, renewable energy, smart energy management and cool the area.
For example, Thailand's smart city master plan aims to address high energy costs by transitioning towards incorporating renewable energy into its supply, while implementing mitigation policies. and reusing waste, as well as implementing other smart solutions such as smart grids, district cooling systems and promoting cogeneration facilities.
Countries should also adopt smart technologies such as the Internet of Things, mobile devices, artificial intelligence and sensors that can increase the efficiency and effectiveness of solving everyday problems such as traffic management. inform and track carbon emissions. ASEAN countries can mitigate environmental risks by deploying the above technologies to collect and analyze real-time data, and simulate scenarios to optimize solutions.
With the establishment of the ASEAN Smart Cities Network in 2018, 26 pilot smart cities have been identified, with the goal of enhancing overall quality of life through smart, sustainable urban development. and powered by technology.
Since then, major ASEAN countries have launched ambitious development plans: Thailand aims to reach 100 smart cities by 2024 and Indonesia targets 100 smart cities in its master plan. me. These smart city trends will continue to expand and will include sustainability as ASEAN strives to accelerate economic growth.
Question about funding
According to the Asian Development Bank, for Asia to maintain growth momentum and reduce poverty while responding to climate change, the region must invest $1,7 trillion per year in infrastructure. until 2030. However, only about 2% ($40 billion) is expected to be allocated to climate risk adaptation. As Covid-19 puts a strain on public finances, there will also be opportunities for public-private partnerships and private investment to promote sustainable development projects.
An encouraging sign is the increase in direct corporate power purchase agreements (DPPAs) for renewable energy in ASEAN. In Singapore, Sunseap Group signed DPPA with technology giants such as Facebook and Amazon to provide 100% renewable energy for power supply operations in this region.
Non-ASEAN power companies have also entered the ASEAN market to serve the growing demand for renewable energy. For example, Japanese renewable energy startup Shizen Energy, in partnership with Constant Energy, has signed business cooperation contracts with Japanese companies operating in Southeast Asia.
As more corporations commit to sustainability and net-zero emissions goals, corporate DPPAs and investments in renewable energy will continue to grow, which will be essential. needed to meet future carbon neutrality commitments for ASEAN countries.
Notably, a collective initiative from global organizations such as RE100 encourages multiple commitments to 100% renewable energy and the incorporation of low carbon solutions across supply and value chains. With the requirement to reduce scope 3 emissions, i.e. all indirect emissions across a company's value chain, these suppliers will be required to comply and make the transition towards carbon neutrality.
Reduce, reuse and recycle
Finally, local community participation in “Reduce, Reuse and Recycle” activities is essential. Consumer behavior towards efficient use of resources and use of energy-saving technologies is likely to be cultivated. This can be seen from a series of ASEAN programs that encourage conversion and disuse of old, energy-inefficient electrical appliances and devices.
A culture of reusing packaging has also been promoted in Singapore and Malaysia in recent years, and discouraging the use of single-use plastic will help reduce carbon emissions and ease the burden of waste management.
Recycling remains a challenge in ASEAN as urban waste collection and management remains a primary concern for waste-to-energy projects, but this is likely to improve with recognition. Community awareness and educational efforts are increasingly being carried out.
The path towards carbon neutrality is one that requires immediate efforts from a multitude of stakeholders and uses a variety of solutions. ASEAN's carbon neutral roadmap will provide many opportunities for governments, businesses and consumers to choose strategies that ensure economic relevance in the coming years, as the change of a A greener world is an irreversible trend.
[1] Carbon footprint: emissions are mainly carbon released into the air due to human activities.