The growing scope of Asia’s green demand

The Asia Pacific is a critical battleground in the global effort to tackle climate change. Many nations and businesses across the region are investing in policy frameworks and commitments necessary to drive climate solutions.

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According to the World Energy Investment Outlook, total investment of $US 4.6 trillion will be required into renewable energy and energy efficiency) between 2014 and 2035 to meet the energy demand of China, India, Japan, and South-East Asia. This figure needs to rise to $US 7.7 trillion if the world is to meet the current 2° warming target.

" The Asia Pacific is a critical battleground in the global effort to tackle climate change."
Benjamin McCarron, Managing Director, Asia Research and Engagement

In Asian markets the spend demands will surround efforts to transform supply and reduce demand respectively. Much of the required investment will be needed to maintain existing energy output rather than meet demand growth.

The below chart outlines the projected spend in Asia over the period to 2035.

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The chart is a part of the Investing for the climate in Asia report, undertaken by Asia Research and Engagement (ARE) with the support of Australia and New Zealand Banking Group Limited (ANZ) and released as part of the re-launch of the Asia Investor Group on Climate Change (AIGCC).

The report, available later in September, reviews the practices of 88 leading domestic financial institutions across the Asia Pacific to understand the state of the finance industry’s response to climate change.

Benjamin McCarron is managing director of Asia Research and Engagement (ARE) which provides financial institutions, companies and civil society organisations with information about the financial relevance of sustainability and governance issues.

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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