Corporate Leaders in the APAC Region Advocate for Clean Energy Coalitions to Address Government Policy Inconsistencies

BayWa r.e., a global leader in renewable energy development, independent power production, services, and solar distribution, has issued its Asia Pacific (APAC) Energy Report titled “Asia’s Climate Goals at Risk – Urgent Need for Greater Accord.” Despite showcasing positive advancements in the renewable energy transition, the APAC region has reached a pivotal moment. Challenges like the consequences of the Russia-Ukraine war, inadequate governmental support, and fluctuating energy prices and interest rates present substantial risks to the pace of progress and climate objectives.

Amidst frustrations caused by inconsistent government policies, companies are spearheading efforts and urging collaborative alliances between organizations to drive sustainability goals forward. BayWa r.e. has released its inaugural APAC Energy Report, conducted by Kantar, a renowned data, insights, and consulting company. The report surveyed energy decision-makers across Australia, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, The Philippines, and Vietnam, revealing that geopolitical tensions, rising costs, and inflation act as significant challenges hindering the energy transition in the Asia Pacific region. To overcome these obstacles, it is crucial for corporations and governments to unite and work together towards solutions.

According to the APAC Energy Report, corporate leaders are driven to mobilize their peers and competitors, urging for increased public-private partnerships to achieve global net-zero goals. The report underscores the urgent call to action and expresses optimism that significant strides can be made in the adoption of green energy throughout the APAC region. Niranpal Singh, Managing Director of BayWa r.e. Energy Solutions in Malaysia, emphasizes the importance of this collaborative effort.

Key Findings

Among the top three barriers identified by respondents, the APAC Energy Report highlights slow government implementation of renewable energy policies and unpredictable policy environments in local markets, accounting for 36% and 33% of the responses, respectively. For instance, in Southeast Asia, 59% of respondents anticipate an increased government inclination toward fossil fuel-based energy instead of supporting green energy in the next two to three years. In Oceania and East Asia, 47% of corporations express concerns about unstable government support for fossil fuel-based energy in the coming years. To facilitate the transition to green energy, 42% of APAC corporates believe that government tariffs on conventional energy sources would assist in driving their organization’s adoption of renewable energy.

Despite the challenges and obstacles faced in the renewable energy transition, APAC corporates recognize the urgent need for change. Nearly half of the surveyed companies (48%) have prioritized the energy transition, aiming to increase their use of renewable energy by over 40% within this decade. Encouragingly, 79% of these companies aspire to achieve this goal within the next five years. The survey also revealed that 54% of respondents believe that adopting renewable energy would enhance their company’s image, while 50% see it as providing a business advantage. Additionally, 42% noted that green energy would offer an advantage in talent recruitment and retention, particularly with the decreasing cost of commercial rooftop solar compared to subsidized power in Southeast Asia

Accelerating transitions

The survey revealed that corporate leaders recognize the importance of collaboration with both peers and competitors to accelerate the transition towards clean energy. Among companies at the forefront of renewable energy adoption, 68% strongly agree that forming coalitions and working together is crucial to achieving sustainability goals. Similarly, the same percentage of respondents expressed support for APAC countries collaborating to promote renewable energy. These findings emphasize the collective commitment and shared responsibility of businesses and nations in driving the clean energy agenda forward.

The report emphasizes that the coming decade is crucial for the energy transition in the APAC region, despite the challenges posed by geopolitical tensions, international conflicts, rising costs of living, inflation, and the worsening climate crisis. The urgency to transition from traditional energy sources is now more critical than ever and requires accelerated action. Corporate decision-makers are called upon to lead the way, joining forces, pressuring governments, and driving rapid adoption of renewable energy. The report, conducted by BayWa r.e. and Kantar at the end of 2022, surveyed 346 energy decision influencers from organizations with 100 or more employees in several APAC countries. This report is part of BayWa r.e.’s series of energy reports, with a previous focus on U.S. corporate energy buyers and decision-makers in 2021. The APAC Energy Report is available for download.