SCALING UP PRIVATE INVESTMENT FOR LOW CARBON ENERGY TRANSITION: THE ROLE OF REGIONAL SOLUTION

摘要

The Paris Agreement went in force in November 2016, after 55 countries representing more than 60 percent of global Green House Gas (GHG) emissions ratified their commitments to keep global warming below 2o C. Under the Paris Agreement, ASEAN and East Asian countries have committed to reduce annual emissions from 20 % – 65% by 2030. Collectively this represent a 46 percent reduction from 2005 levels for the 16 East Asia Summit (EAS) countries. The Nationally Determined Contributions (NDC) under the Paris Agreement foreshowed a new level of engagement on low –carbon energy investment. Achieving NDC targets will require very large reductions in energy related carbon emissions. This can be realized both by accelerated investments in low-carbon energy systems and by retrofitting of retiring inefficient energy infrastructure. Mission innovation – a commitment made by 21 advanced member countries, in lieu of Paris summit, to doubling the investment in low carbon energy innovation by 2020 is a positive development. This and other breakthroughs such as Solar Alliance by more than 121 countries to triple their renewable energy uptake, very much depends on rapid diffusion of finance that are integrally linked with feedback loops embedded in economic markets. The objective of the paper is to review the state of low carbon investment in the region and provides a critical analyses of low-carbon financial initiatives and the mechanisms, being practiced in developing and emerging economies of Asia. This paper hypothesis that despite the presence of several incentive schemes, private investment into low carbon energy systems is constrained by several barriers, and policy makers can enhance the investment by regional cooperation. Based on the review and the current opportunities available within the framework conditions of Association of South East Asian Nations (ASEAN) economic community (AEC), it proposes four interrelated regional solutions as a means to accelerate low carbon investment at national level. Finally it discusses the implementation outlook of the transition fund and other associated solutions.