Regional and global business leaders, policy makers and government representatives throughout the energy sector convened at the second annual Asia Pacific Energy Week, organized by Siemens Energy, to discuss regional challenges and opportunities for the energy transition. Themed “Making the Energy of Tomorrow Possible,” the two-day virtual event held from March 28 to 29, 2022 saw more than 2,000 participants actively engage in the discussions, opinion polls, and questions. Over the two days, participants were surveyed on the importance of major energy priorities and the progress made towards the energy transition.
The Asia Pacific Energy Transition Readiness Index is derived using an aggregate of participants’ response to each of 11 pre-determined key energy priorities. The study yielded valuable data and insights, which will be used to enhance key strategies for the energy transition in the region. It is the first of a series of studies which will be conducted in different regions globally.
Lofty Ambitions, but Low Readiness for Asia Pacific Energy Transition
The survey of conference participants revealed a significant gap between perception and reality when it came to carbon emissions. Between 2005 and 2020, regional carbon emissions grew by around 50 percent, yet participants believed they had fallen by almost a third. The participants also anticipated that 2030 emission levels would be 39 percent lower than in 2005. Further analysis of the survey data found that the Asia-Pacific region had a score of 25 percent on the Readiness Index, which indicates how far a region is along its energy transition path.
According to Siemens Energy, although there has been successful decarbonization in a number of areas, strong economic growth is counteracting this progress, resulting in a net increase in overall emissions. With the Asia Pacific region responsible for more than half of the world’s CO2 emissions, global climate efforts must clearly involve Asia Pacific more in the future. Maintaining economic growth and prosperity while simultaneously reducing emissions in the medium and long term needs to be the top priority for the region.
Policy Changes Required to Drive Progress
Five factors were identified as areas that require development to drive progress along the energy transition: funding; know-how; technology; policy; and supply chain. Overall, participants see policy as the most important factor in almost every priority. Funding also emerged as a substantial need for most priorities. The need for additional know-how varies but is highest for new technologies, such as carbon capture and storage (CCS) and power-to-X solutions.
The full Asia Pacific Energy Transition Readiness Index is available here.