The increasing impacts of climate change are pushing governments and economies around the world to take rapid action. With Asia comprising some 60% of the world’s population and being arguably more exposed to climate risks than any other region, governments are committing to a shift to carbon neutrality and clean energy, giving rise to a compelling investment opportunity.

In 2020, three major Asian economies declared net-zero carbon emissions targets – Japan and South Korea by 2050 and China by 2060. We anticipate these prominent commitments will accelerate the growth of renewable energy across Asia through the development of supply chains, by driving down technology costs and attracting international investment interest.

Decarbonization urgency

Asia is increasingly vulnerable to climate change

Asia’s share of global greenhouse gas emissions has risen from 25% to 45% in the past 30 years,¹ reflecting its economic development and population increase. As it expands, its economies become increasingly vulnerable to climate changes, with many low-lying coastal cities exposed to heatwaves, flooding, typhoons and rising sea levels.

By 2050, it is predicted that Asia will account for more than two-thirds of global GDP at risk from outdoor working hours lost due to increased heat and humidity. For the sake of people and the planet, it’s clear why Asia is embracing decarbonization and clean energy in the fight against climate change.