SIEW Thinktank Roundtable F featured insights on the potential pathways to meet ASEAN’s regional net-zero ambitions. Boo Yi Lin reports
With the 2021 United Nations Climate Change Conference (COP) just a few days away, it was timely for discussions to take place around Asia's efforts in the clean energy transition. At SIEW Thinktank Roundtable F helmed by the British Chamber of Commerce Singapore (BritCham), experts offered new insights into the scale-up of investment and innovation required for Southeast Asia's sustainable infrastructure.
Tom Moody, Regional Director SE Asia, Climate and Energy, UK Foreign Commonwealth and Development Office (FCDO), began his Keynote Address by highlighting how crucial the upcoming COP26 is in finalising the rules within the Paris Agreement. He reminded that this requires a global commitment to mobilise the necessary green finance to accelerate a just energy transition.
Simon Wilde, Director Analysis and Assurance, OFGEM, said the COP26 Summit is an important milestone that will set in motion the UK’s plans towards accelerating its net-zero strategy.
Specific measures will include a support scheme for new carbon capture and storage hubs, as well as the transport and storage elements for carbon capture, utilisation and storage (CCUS). There will also be relevant support mechanisms from regulatory structures, Mr Wilde added.
Challenges and solutions in decarbonising Asia
With coal still deeply embedded in today’s markets, a huge collective effort will be needed to drive the energy transition. Nikki Kemp, ASEAN Hub Director, Sustainable Development Investment Partnership (SDIP), World Economic Forum, stressed on the importance of guiding principles to cover all aspects of the economy for each country's energy policies.
With the move towards electrification, Paul Jordan from UK Energy Catapult said there is also a greater need to look at the electricity consumption profiles of consumers and for smart energy systems to match load and demand. He added that Energy Storage Systems can also be used to address intermittency in renewables.
Prannoy Chowdhury, Senior Consultant, South East Asia, The Carbon Trust, said hydrogen will definitely have a role to play in the road to decarbonisation. While there are downsides, such as the numerous steps required in the production process as well as conversion loss, there are also significant advantages. Hydrogen is energy-dense and can be condensed in larger quantities at a lower weight.
Within the Singapore context, Henry Tse, Director of New Mobility Technologies, Connected Places Catapult, said hydrogen fuel cells can be applied to the heavy goods vehicle sector as well as ports. If both businesses and operators collaborate to adopt the technology, this could see greater take-up in the wider region.
Reaching net-zero through public-private collaborations
The right mix of government support and wider economic regeneration policies can help fund a net-zero carbon future, said Michael Jenner, Corporate Affairs Director, Sembcorp Energy UK. He added that this will also require the right balance between public and private sector cost sharing. Once the business model can demonstrate that it works with the right partnership, the model can be replicated globally, he said.
Dr Gareth Williams, High-Value Manufacturing Catapults, said governments around the world will need to get familiar with the complexities associated with new technology adoption. He added that policymakers will need to inspire the move to net zero, coupled with big behavioural changes within the communities, to provide that level of support needed to accelerate the energy transition.
Scaling up investments in Southeast Asia’s sustainable infrastructure
Scaling up investments for the region's sustainable energy infrastructure will benefit from government-level partnerships who can drive the changes needed, said Alison Young, Global Export and Investment Specialist, Connected Places Catapult. With the right regulations and policy frameworks in place, she said it is possible to break down the barriers to investments.
Dr Kaho Yu, Lead Energy Analyst, APAC, Verisk Maplecroft, highlighted that every country’s regulatory requirements and pace of energy transition are different. The impact of these differences on the clean energy investment landscape was apparent in the recent global energy crisis.
Adding to this, Dominic Gregory, Partner, Corporate and Finance Transactions, Bryan Cave Leighton Paisner LLP, said it was important to compare notes on infrastructure and financial regulations within different licensing landscapes to avoid unintended consequences.
Lessons and key takeaways for Asia
In the closing remarks of the Roundtable, Allard M Nooy, Chief Executive Officer, Infraco Asia Development Pte Ltd, emphasised the need to find innovative solutions in financing to get to net-zero. He said there will be costs associated with retiring and replacing coal-fired power plants.
Experts again highlighted the importance of collaboration in driving the energy transition. Peter Godfrey, Managing Director, APAC, The Energy Institute, stressed that it is important to recognise the communities involved in this process as they can make a decisive difference.
Nick Dingemans, Partner, Penningtons Manches Cooper LLP, said understanding that there is money to be made from the energy transition will encourage businesses to innovate more at the pace and scale that is required.
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