A report commissioned by BayWa r.e., a global renewable energy developer, independent power producer, service provider, and solar distributor, shows that inconsistent government policies prevent the widespread adoption of renewable energy in the Asia Pacific (APAC) region.
According to the report, which was conducted by data, insights, and consulting company Kantar, 36% of the respondents feel that slow government implementation of renewable energy policies slows down the pace of change in climate goals. Some 33% of respondents said that unpredictable policy environments in local markets are also a barrier to any progress in renewable energy initiatives.
“Challenges on the road to the transition will persist, and it will be imperative for corporates and governments to come together to overcome them,” Niranpal Singh, managing director of Malaysia, BayWa r.e. Energy Solutions, said in a statement.
The energy report surveyed energy decision-makers in Australia, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, The Philippines, and Vietnam.
Transition toward green energy
About 59% of respondents in Southeast Asia believe that instead of pushing for green energy, governments in this region may increase their support for fossil fuel-based energy in the next two to three years. While for corporations in Oceania and East Asia, 47% believe that government support for fossil fuel-based energy will remain unstable in the next two to three years.
To help the transition toward green energy, 42% of APAC corporates believed that government tariffs on brown energy would support their organization’s push toward renewable energy.
“The APAC Energy Report has shown that corporate leaders are motivated to gather their peers and competitors and call for more public-private partnerships to fulfill the global net-zero goals,” Singh said. “We hope that with this urgent call to action, substantial progress can be seen in green energy adoption within the APAC region.”
Corporate leaders’ call for action
While the outlook for the renewable energy transition is one of the challenges and obstacles to be overcome, the urgent need for change is recognized by the corporate leaders in the region. Close to half of the corporations surveyed have made energy transition a priority, with 48% of APAC companies aiming to increase the use of renewable energy by more than 40% over this decade. Within this group of companies, 79% are looking to achieve it in the next five years, providing cause for optimism.
Companies surveyed also saw the value in transitioning toward cleaner energy options, with 54% concluding that renewable energy will give companies a better image. Half of all respondents surveyed also agreed that utilizing renewable energy would give them some kind of business advantage, and another 42% suggested that green energy would give them an advantage in talent recruitment and retention at a time when large-scale commercial roof-top solar has become cheaper than subsidized power in Southeast Asia.
Categories: Business Features