Apical’s Sustainability Dialogue with Banks 2016
On 22 April 2016, Apical Group held its inaugural Business Briefing & Sustainability Update. Led by its President Dato’ Yeo How, Apical management hosted 90 representatives from 30 banks at...
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This is an excerpt from an article in The Business Times. Read the full version here: https://www.businesstimes.com.sg/opinion-features/energy-trade-missing-link-sustainable-development-south-east-asia
By Anderson Tanoto
As global leaders convene at the World Economic Forum (WEF) in Davos this week, one of the five key themes they will explore is “reimagining growth”, looking anew at bold, innovative approaches to building stronger and more resilient economies. One promising avenue is energy trade – a transformative mechanism to bridge energy inequities and drive sustainable growth.
Across Asia and the Pacific, more than 350 million people grapple with unreliable electricity, while 150 million live entirely without it, according to the Asian Development Bank. This disparity in energy access highlights systemic inequalities that hinder progress in agriculture, manufacturing and broader development.
Tackling these issues requires new ways of collaborating with governments, corporates and society, aligning with the WEF’s 2025 sub-theme of reimagining growth.
Southeast Asia is blessed with renewable energy potential estimated to be 40 to 50 times its current total electricity generation. The abundance of solar, wind, hydropower and geothermal resources presents a clear path to clean, sustainable energy. Yet, it trails behind other regions in transitioning to renewables.
How can the region move beyond these barriers and fast-track to an equitable energy transition?
Strong government action, robust policy frameworks and regional cooperation are vital to overcoming the current inertia. It is not just about scaling up clean energy projects, but also ensuring that the transition benefits everyone.
By enabling the efficient sharing of renewable energy resources across borders, energy trade can break down systemic barriers and unlock South-east Asia’s potential for sustainable development.
The private sector is increasingly recognising the economic and business opportunities in renewable energy and cross-border electricity projects.
Corporates must strive to be bold and innovative, driving bankable, commercially viable clean energy initiatives. By contributing to the broader green transition, businesses can thrive while advancing sustainable growth for all.
Finally, there is an urgent need to establish robust market mechanisms to attract capital for renewable energy projects. Currently, investors hesitate to commit capital, citing risks such as infrastructure gaps and regulatory uncertainty. Governments must provide regulatory certainty through clear, consistent policies resilient to political and macroeconomic changes. Effective mandates and subsidies can further stimulate demand and encourage renewable energy adoption at scale.
The private sector can also manage risks within its control, such as securing land and bridging infrastructure gaps. These measures, combined with public-private sector collaboration, can unlock the large-scale renewable energy projects that Southeast Asia urgently needs.
Ultimately, the success of Southeast Asia’s energy transition hinges on its ability to create and optimise new avenues of growth. By enabling regional energy trade, the region can turn ambition into action – creating a sustainable development model that addresses today’s energy demands, drives job creation and secures a resilient future for generations to come.