Tap on commitment from COP27 to support Asean renewable energy target
(Eco Business, 17 Feb 2023) Asean countries can take advantage of climate financing opportunities that emerged at the latest COP and prepare an investment-ready environment for clean energy development.
An action plan for energy cooperation sets out that Asean seeks to raise the proportion of renewable energy in its energy mix to 23 per cent by 2025. However, as of 2020, renewable energy only takes up 14.2 per cent of its total primary energy supply. Asean needs to seize any available funding opportunity, including climate financing, to close the regional target gap.
According to the 7th Asean Energy Outlook (AEO7), the required clean energy transition investment in the Asean power sector under business-as-usual (BaU) from 2021-2050 is US$970 billion.
This amount is far less than the investment required to fund the impact of BaU externalities such as droughts, storms, and pollution-caused health problems, which could reach US$4,569 billion by 2050.
Some new funding opportunities that can be utilised to finance clean energy transition and climate adaptation programmes were initiated at the last COP meeting.
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Eco Business, 17 Feb 2023: Tap on commitment from COP27 to support Asean renewable energy target