Green Transition in Asia in Action

On April 20, the 2022 Annual Conference of the Boao Forum for Asia released the "Sustainable Development of Asia and the World 2022 Annual Report - Green Transformation in Asia in Action". The "Report" proposes that, as an important global growth engine, many Asian countries have made carbon commitments in 2021, and governments, businesses and civil society are all taking active actions.

Li Baodong, Secretary-General of the Boao Forum for Asia and former Vice Minister of Foreign Affairs of China, said that the "Sustainable Development of Asia and the World 2022 Annual Report - Green Transformation in Asia in Action" is one of the two flagship reports released by the Boao Forum this year. The "Report" pointed out that Asia is an important growth engine in the world, and its carbon emissions have exceeded half of the world's total emissions, which is of great significance to the green recovery and just transition of the global economy.

According to the "Report", by the end of 2021, 25 Asian countries have made carbon neutrality commitments. Among Asia's seven largest economies, Japan and South Korea have set timeframes for carbon neutrality by 2050, Turkey by 2053, China, Indonesia, Saudi Arabia by 2060, and India by 2070.

Governments, businesses and civil society are all taking action. The government has strengthened green governance, implemented green recovery policies, and enhanced resilience to climate change. Looking at green governance practices in Asia, some countries, such as China, South Korea, Nepal, Singapore and Thailand, have established “high-level leadership groups” or committees to oversee the development and implementation of national net-zero emissions strategies. In some countries, such as Singapore and Japan, collaboration between the lead agency and other line ministries, as well as between central and local governments, to achieve net zero emissions is a feature. Active participation of NGOs, such as professional consulting and research institutions, also plays an indispensable role in Korea and Japan. In terms of strategies and policies, many Asian countries have defined short-, medium- and long-term decarbonization goals, formulated corresponding roadmaps, adopted comprehensive climate mitigation and climate adaptation policies, and launched a complete set of industrial, fiscal and financial policies, using Incentives and Disincentives. Some Asian countries have been at the forefront of establishing monitoring, reporting and evaluation (MRV) systems and have been early adopters of international disclosure requirements. In addition, China, South Korea, Japan and Kazakhstan have established Emissions Trading Systems (ETS); Indonesia and Vietnam are under construction; the Philippines, Pakistan, Thailand and Bangladesh are also considering this as an important part of the market mechanism component.

Let's look at the actions of Asian companies. They strengthen the development and utilization of new energy, promote green investment and financing, reduce the carbon footprint of the entire industry chain, and actively support global climate initiatives. Many members and partners of the Boao Forum have become global pioneers in the research and development and application of technologies such as carbon capture and utilization, solar photovoltaic, wind power, green hydrogen, and biofuels. For example, SABIC built the world's largest carbon dioxide capture and treatment plant in Saudi Arabia to achieve "negative carbon emissions"; Trina Solar provided "county-wide solutions" and built "photovoltaic villages" in rural China to promote China's realization of Dual carbon goals and rural revitalization; through cooperative projects to develop green hydrogen energy, FMG has transformed from a large iron ore exporter to a renewable energy leader, and actively explored green hydrogen projects in many Asian countries.

Many Asian countries are promoting green transition in their development, and the task of achieving greater development in transition is arduous. Li Baodong said that to achieve carbon neutrality and green transition, Asian countries need a peaceful and stable international environment, a stable industrial chain and supply chain guarantee, and an accelerated replenishment of climate aid funds from developed countries to developing countries. Green technical support and capital investment.

Dr. Ma Jun, Director of the Professional Committee of the China Association of Finance and Economics and President of the Beijing Institute of Green Finance and Sustainable Development, further explained the content of the "Report". He stressed that a roadmap is needed to achieve carbon neutrality. China is a leader in developing countries in terms of facility roadmaps, and has plans at the national level. At the same time, the framework roadmaps for many industries such as energy, transportation, construction, and manufacturing have been relatively clear. These roadmaps provide the financial industry. Good guide. He also proposed that to strengthen the ability to deal with challenges, firstly, we should coach high-carbon enterprises and make good plans and response plans; secondly, we should do a good job in transforming the financial system and encourage financial institutions to provide more financial financing. He also said that in the context of carbon neutrality, it is expected that my country will have a green and low-carbon investment demand of 487 trillion yuan in the next 30 years, and relevant fields must seize this opportunity.

Xie An, Deloitte China Climate Change and Sustainability Leader, proposed that if enterprises need to transform energy, whether my country's energy supply, infrastructure and smart grid supply can provide enough renewable energy to enterprises, these are the key factors for enterprises to challenges in the transformation process. Xie An suggested that in order to meet the challenges, enterprises should cooperate with the implementation measures from the perspective of concept and strategic direction. At the same time, enterprises also need support at different levels, including support at the regulatory level and support at the infrastructure level. Asian companies have taken actions in some important links, including the rapid application of new technologies, etc. At the same time, Asian companies have strong implementation and promotion capabilities.