Singapore is leading in efforts to drive net zero, followed by Vietnam and Thailand, say 150 industry leaders surveyed by the Sustainable Energy Association of Singapore (SEAS).
Singapore polled first among Asean countries, with 92% of respondents agreeing that the nation is poised to become a world or regional leader in sustainable banking and finance, carbon trading and electric mobility.
While seven in 10 respondents believe that Singapore’s ambitions of being a clean energy hub is dampened by land scarcity, their view is that the country could potentially play a significant role as the regional hub for green finance (67%), carbon trading (54%) and electric mobility (50%).
Released on Oct 12, SEAS’s report comes ahead of the 10th anniversary of their flagship conference, the Asia Clean Energy Summit (ACES), later this month,
Edwin Khew, chairman of SEAS, says: “It is no surprise that Singapore has been voted the leader in the region’s energy transition. As a global shipping, commodities and energy hub, as well as a centre for finance and trade, Singapore is well-positioned to play the role of a catalyst in driving the region’s energy transition forward through research and development, and facilitating investment and cross-border partnerships. The government has also set progressive plans and policies in motion to grow the renewable energy sector, amongst other cross-border initiatives.”
Over the next 10 years, respondents are confident that the greatest progress will be in renewable energy production (27%), which contrasts with the finding that less than 10% of respondents believe there will be advancements in policy and governance.
See also: Singapore must do more to achieve net-zero targets: SEAS
That said, respondents say the top three barriers to accelerating the energy transition in Asean are weak government strategies or allocation of subsidies (64%), difficulties in implementing cross-border initiatives (63%) and lack of infrastructure for renewables production, storage, transmission and charging (54%).
In turn, they believe the top enabler of the Asean energy transition are new governance frameworks and standards to manage the carbon intensity of energy, including carbon taxes and incentives for green energy (84%), while green finance pipelines to support the transition (63%), including subsidies from Western countries, would help move the needle in the next 10 years.
Michael Harrison, partner at Baker Botts, a premium sponsor for ACES, says Singapore and other governments in the region should set agreements in place to facilitate the cross-border transmission of energy. “In the absence of an immediate multilateral agreement, export areas need to agree on the basis of the development of high-voltage direct current interconnectors (HVDC) from areas of electrical generation to areas of electrical need. To enable the development of the Asean power grid, it is necessary for governments to agree, government to government, to develop cross-border agreements that provide certainty and will enshrine energy security, which will allow governments to access commercial bank funding to develop HVDC.”
See also: JPMorgan pursues deals to finance shutdown of coal-fired power
On making an Asean common power grid a reality, respondents agree that greater cross-border collaboration was required with cross-border consortiums (72%) leading the way. Other solutions include bilateral country agreements (71%) and an Asean-wide treaty (70%).
Carbon taxes and green energy imports
Despite the steep carbon tax hike in Singapore, respondents agree that the 2024 rate of $25/tonne is justified, but that it should be reviewed and adjusted periodically.
Respondents ranked green energy imports as the best option for balancing energy security, affordability and sustainability in Singapore (45%), followed by solar on water bodies, rooftops or vacant land (32%), and a combination of hydrogen produced from natural gas with carbon capture, utilisation and storage (18%).
The 10th ACES will be held on Oct 24-26 at the Sands Expo and Convention Centre, Marina Bay Sands. Held as part of the Singapore International Energy Week (SIEW), ACES provides a common platform for regional thought leaders in both the public and private sector to collaborate on critical issues and opportunities in harnessing clean energy for the future.
Launched in 2006, SEAS is a non-government and non-profit business association that represents the interests and provides a common platform for companies in the sustainable energy sector to meet, discuss, collaborate and undertake viable projects together.
