Side event 1 (Morning Session)– Sustainable Energy Financing and Mobilisation of Energy Investments to Ensure Energy Security and Achieve NDCs in ASEAN

ASEAN countries have announced their respective carbon neutrality goals prior to or at the COP26, and further has bolden their action at the COP27 with target of carbon neutrality. However, carbon neutrality cannot be achieved by a mere target announcement. Pathways towards carbon neutrality may vary between countries. Availability, accessibility, and affordability of energy supply as reflected in the APAEC (ASEAN Plan of Action of Energy Cooperation) is the most fundamental requirement for ASEAN member countries.

ERIA’s technology optimization analysis for decarbonizing ASEAN energy mix towards carbon neutrality in 2060, produced in collaboration with the Institute of Energy Economics of Japan (IEEJ) suggests that i) energy efficiency improvement and electrification in end-use sectors, combined with low-carbon power supply, are core strategies for decarbonizing ASEAN energy systems ii) not only VRE, but also other carbon-free technologies (hydro, geothermal, biomass, nuclear, CO2 free hydrogen and CCUS) and negative emission technologies, as well as forest carbon sinks, should contribute to carbon neutrality iii) during transition periods, fuel switching from coal to natural gas, deployment of more efficient turbines, and co-firing with hydrogen or ammonia, all play important roles iv) while affordable technologies will be deployed in the mid- term, more niche but expensive technologies would be required in the last stage of complete carbon neutrality v) for political, economic, and social acceptability, mitigation costs must be reduced through technology innovation, large scale deployment, and regional/international cooperation.

Recognising a different energy landscape of ASEAN compared with North America and the European region in terms of economic development, current energy mix, resource endowment, and cross-country or inter-regional interconnections, ASEAN will need an appropriate energy financing for energy transition to ensure that smooth transition to carbon neutrality can be achieved all together. The government, private sector, banking sector and other financial institutions should not hesitate to fund such identified transition technologies together with renewable and clean technologies. In addition, Asian countries should raise their voices in international debate on green finance so that diverse national/regional circumstances could appropriately be taken into consideration. In this way, the smooth transition that considers energy security, affordability, reliability, and climate change all together could be ensured.

Taking the opportunity of Indonesia’s ASEAN Chairmanship, this international conference co-hosted by ERIA, MEMR, and ACE will response to Priorities Economic Deliverables (PEDs) of Indonesia ASEAN Chairmanship, Priority number 2, calling for “Sustainable energy financing and mobilisation of energy investments to ensure energy security and achieve NDCs in ASEAN”. All stakeholders in ASEAN particularly the government, financial institutions, banking, energy sectors are fully encouraged to join and explore the ways in which financing energy infrastructure to meet NDCs and also secure those investments, while ensuring energy security, and affordable for all.

Schedule

Date: Wednesday, 23 August 2023
Time: 9 AM - 1:30 PM (GMT+8 / Bali Time)
Venue: Bali Nusa Dua Convention Center, Indonesia | Hybrid

Agenda

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