Accelerating a just energy transition in Asia: Voices from civil society and business |
2022-04-07 |
The Intergovernmental Panel on Climate Change (IPCC) embarked its sixth assessment report cycle. On April 4, the third working group report (WG3) was published, which reviewed the research on global climate change mitigation. this WG3 report, pointing out that in 2025, the world must peak its carbon emissions. Otherwise, with the current emission scenario, the global average temperature will continue to rise towards the end of this century by 3.2 degrees Celsius compared with pre-industrialization, which will become catastrophe.
In other words, global warming still continues, but time is running out, and we must accelerate the implementation of measures to reduce carbon emissions from now on. Against this background, among the various climate change mitigation actions listed in the report, the energy transition is the most critical.
Asia’s energy transition has a lot of room to speed up and scale up
CCIL organised the RE Webinar, "Accelerating the Just Energy Transition in Asia: Voices from Civil Society and Business", on 7 April. It was timely to respond the IPCC’s findings. A total of 13 experts from Japan, South Korea, the Philippines, India, Mainland China, Taiwan and Hong Kong3 were invited to outline the current situation of energy development in the region and the similarities and differences between each other, and put forward analysis and suggestions on how to speed up the just energy transition.
The webinar, "Accelerating the Just Energy Transition in Asia: Voices from Civil Society and Business"2, which was held on April 7th by CarbonCare InnoLab, was timely to respond the IPCC’s findings. A total of 13 experts from Japan, South Korea, the Philippines, India, Mainland China, Taiwan and Hong Kong were invited to outline the current situation of energy development in the region and the similarities and differences between each other, and put forward analysis and suggestions on how to speed up the just energy transition.
The IPCC report pointed out that the global solar and wind power generation technologies have already matured, and the cost of power generation has dropped by 85% and 55% respectively in the past decade, and the power generation of the both renewable energies can also increase significantly before 2030. Renewable energy has great potential for development in the foreseeable future. However, Zhao Ang from the Rock Environmental and Energy Institute, Dr. Chao Chia Wei from the Taiwan Environmental Planning Association, Mika Ohbayashi from the Renewable Energy Institute, and Kevin Li of the CarbonCare InnoLab, shared the latest policies and development trends of energy transition. Even if they affirmed the climate change mitigation policies in their respective countries/regions, they still have a long way to go with the advanced economies of Europe and the United States. There are also gaps in comparison with the recommendations made in the IPCC report. They also pointed out that the decision-making process is also top-down, with less attention paid to the specifics of how to formulate and implement decarbonisation pathways. In fact, this problem is also common in Asia and needs to be faced and dealt with by the authorities.
Possibilities and Limitations of Mitigation of Climate Change by Engineering solutions
Professor Jusen Asuka from Japan’s Tohoku University and Mika Ohbayashi are also cautious about the intervention of new engineering and technology solutions, including the reactivation of nuclear energy technology, and the application of carbon removal technologies such as carbon capture and storage. Even though new energy technologies such as green hydrogen have considerable development potential, and the IPCC report have listed the above technologies as mitigation options, their potential very much depends on the maturity of large-scale use of technologies, which usually have longer return on investment, higher costs and potential security risks.
In addition, even though the cost of renewable power generation has dropped significantly, the comparatively high upfront investment cost and the grid instability that may arise from a large amount of renewable energy being connected to the grid are solvable. But the grid operators and regulatory authorities have not seriously looked at. Gahee Han from the Solutions for Our Climate shared the example of Jeju Island, pointing out that due to curtailment by grid operators, the electricity generated by renewable energy cannot be used even if it performs as good as gas-fired power plants. In addition, due to the tight supply of renewable energy components as a result of the coronavirus pandemic and geopolitical tensions, the originally reduced renewable energy generation costs may become unstable, and may also become an obstacle to the development of renewable energy in the region. Therefore, regulators should play a central role in overcoming technical barriers and driving a national or regional energy transition while weighing in costs, benefits and risks.
Meanwhile, all parts of Asia will still face difficulties in how to speed up the decommissioning of coal-fired power plants in the future. Seukyoung Lee from the Solutions for Our Climate shared the example of two local coal-fired power plants that are hindering the early retirement discussions from moving forward because the government is afraid of potential demands for costly compensation, without the initiatives to assess the size of the compensation. Since most power generators in Asia are state-run or public monopoly, the government, as the regulator of the power industry, has not been actively promoting the decommissioning of coal-fired power plants. How to negotiate a set of implementation guidelines and early retirement mechanisms with power generators will be a challenge that needs to be faced and dealt with in the region.
Two Issues of Just Energy Transition: Distributive Justice and Procedural Justice
Looking ahead, the energy transition in Asia will still encounter opportunities and challenges. Jusen Asuka quoted his research and pointed out that the current level of renewable energy technology can already meet Japan's decarbonisation targets, which will generate greater economic benefits and create more employment opportunities than the continued development of fossil fuels and nuclear energy.4 In addition to introducing the important concepts of justice in energy transition, namely distributive justice and procedural justice, Dr. Daphne Mah from Hong Kong Baptist University and Dr. Laurence L. Delina from Hong Kong University of Science and Technology also cited research on Hong Kong’s public housing and subdivided housing households, as well as examples from ASEAN countries.5 The groups that benefit and suffer during the transition process shall be dealt with redistribution of benefits with the principles of openness, transparency and equality.
Dr. Shota Furuya from the Institute for Sustainable Energy Policies and Hwang Shute from the Green Advocates Energy Cooperative shared their experience in community-based renewable energy production, setting good examples across Asia. On the other hand, Taiwan has formed a cooperative model, which attaches great importance to the equal participation and reasonable distribution of community members. The examples shared by both experts are encouraging,6 but currently small and fragmented. They also pointed out that the factors of success are members' sense of participation, trust in other members of the community and a sense of belonging to the project, but still need to overcome the legal and power system challenges to the cooperative. This is what needs to be learned in order to develop community-based renewable energy at scale.
Finally, in addition to the support of public and private financing for energy transition, Anjali Viswamohanan from the Asian Investors Group for Climate Change (AIGCC) also advocated that investors should take into account both climate mitigation and adaptation to energy investment, and incorporate just transition into investment principles, including care for labour and community participation. This initiative is still in its infancy, but it is hoped that in the foreseeable future more investors in the region will consider the just transition as a core value in their energy investment decisions.
This webinar covers a wide range of topics across Asia. The three-hour discussion is obviously unfinished, but it is a good attempt, taking the first step towards multilateral cooperation and discussion on regional energy transition in the future. For Hong Kong participants, there is a lot to learn from their Asian counterparts. However, the least that can be done is that the development of renewable energy still needs to catch up, and the SAR government should raise the carbon reduction target as soon as possible in response to the latest IPCC report and the targets to be achieved by other Asian countries/regions. We look forward to further in-depth discussions with experts on individual topics in the future.
You are welcome to watch the recording here (in English):
Session 1:
You are welcome to download the transcript of the webinar: Session 1 (English version) HERE.
Session 2:
You are welcome to download the transcript of the webinar: Session 1 (English version) HERE.
Session 3:
You are welcome to download the transcript of the webinar: Session 1 (English version) HERE.
Speakers (in order of appearance):
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