In 2022, the energy sector’s goals are changing. The days of prioritizing profit over planet, whatever the ecological cost, are in the past. Welcome to a new day in clean energy investment.
Sustainability is not just about corporate-social responsibility anymore; it’s about revolutionizing and capitalizing on new forms of energy. This is a chance for investors to be leaders, not followers, in innovative technology, with the assurance that they are helping solve one of humanity’s greatest threats: the climate crisis.
At times, the idea of confronting climate change can seem daunting, if not almost impossible. But what we see in Southeast Asia is a cure to that climate anxiety: hope. More than hope, evidence which shows that clean energy can not only alleviate dependence on polluters and heal the environment, but also be an economic boon.
In October 2022, the United Nations Environment Programme (UNEP)and the Global Compact Network in Thailand (GCNT) joined forces for the “Investment in Biodiversity and Nature for New Business Opportunities” forum, where they discussed the economic benefits of ecological restoration in our region. The UNEP estimated that every dollar invested in ecological restoration can generate a profit of $30. This means green investing can generate returns up to 30 times the initial investment.
Across Southeast Asia, governments, conservation groups, academic circles, and the public are supporting private sector ventures that promote clean energy and protect ecosystems. According to the Asian Development Bank Institute, green bonds are highly supported as a way to finance companies doing just that: “In Indonesia, green bonds are issued by the government, while the Malaysia and Singapore governments have instituted grants to support the issuance of green bonds by private firms.”
One especially promising natural resource in SEA is geothermal energy. Obtained by drilling water or steam wells, geothermal energy is incredibly cost-effective, renewable, and has a low carbon impact. It’s not available everywhere in the world – but it is in our region. In fact, Indonesia is the second largest producer of geothermal energy on earth. But there’s room for massive growth:
Besides geothermal energy, clean sources like hydropower, solar power, on + offshore wind, and biofuel are all growing industries in SEA:
Also playing an important role in the future of energy is ASEAN’s proposed Trans-ASEAN Gas Pipeline (TAGP). According to the organization, “A common gas market (CGM) will increase the security of natural gas supply, reduce carbon emissions and inject competition into the regional gas market.” Indonesia, Malaysia, and Brunei have been established liquefied natural gas (LNG) exporters for years. A major project like the TAGP would expand access to gas between places like Wast Natuna to Singapore, East Natuna to West Natuna, and East Natuna to Java.
Not only have these clean industries demonstrated high growth potential, but they are also backed by public support. People in SEA (and across the globe) are deeply concerned about the world’s over-reliance on coal and other non-sustainable forms of energy. One of the most recent examples of this came from South Cotabato in the Philippines, where hundreds protested a policy to reopen open-pit mining in the area.
This is the moment in time when investors can make a real difference in our shared futures. Clean energy is the only way forward in a world threatened by climate change, and the stage is clearly set in Southeast Asia for this seismic shift to take place. Meeting this challenge means reaping the benefits of being an early adopter in these untapped fields. Invest SEA seeks investors to rise to the occasion. Will that be you?
