Eye on Asia | US and China must return to climate cooperation soon – without Asia, the energy transition will fail

Name: Huge solar farm at Mexico City market being built with 32,000 panels from China
Uploaded: 2022-09-18T16:30:10.000Z
Duration: 1 min 35 s
Description: Huge solar farm at Mexico City market being built with 32,000 panels from China

Asia is a major contributor to both climate-hurting emissions and climate-helping solutions, from renewable energy to electric vehicles

For key decision-makers in the region, this is a chance to continue to show leadership and move forward – the West cannot lead the energy transition alone

Reading Time:3 minutes

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Filipino climate activists run with a banner saying “Clean Energy, Green Future” during a rally outside the Chinese consulate in Makati, Philippines, in October 2021. The group welcomed the announcement by Chinese President Xi Jinping that his country will no longer fund coal-fired plants abroad. Photo: AP

Mathieu Nègre

Published: 12:30am, 19 Sep 2022

China’s recent decision to suspend cooperation with the United States on climate change comes at a very inopportune moment, given the increased importance of Asia in the fight against climate change.

Awareness of the need for an energy transition has come later in Asia than in Europe. This was partly justified by Asia’s lower share of historic carbon emissions. Back at the Earth Summit in Rio de Janeiro in 1992, the Asian continent was responsible for only 16.5 per cent of historic emissions.

But 30 years of industrial success and urbanisation have modified the landscape. According to the latest data, Asia’s share of emissions is now up to 31 per cent while that of the old industrial nations (Europe and the US) is down to 46 per cent – and Asia’s share will most probably continue to increase.

But Asia is both the problem and a big part of the solution. For instance, solar energy is a stronger proposition than 10 years ago. Solar panel makers in many countries are now competitive in the market without subsidies. This progress is largely due to cost savings as Chinese solar energy companies increased their market share, which has grown to above 80 per cent in most areas of the supply chain.

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Huge solar farm at Mexico City market being built with 32,000 panels from China

Similarly, the top 10 producers of batteries for electric vehicles are all in Asia, and they have played a pivotal role in the surge in electric vehicle sales. Asian companies also play a leading, if not critical, role in promoting wind energy, high-speed rail, bicycles and many of the semiconductors that improve energy efficiency around the world. And this list could go on.

Asian start-ups are also rising through the ranks. BloombergNEF recently released a study about “climate unicorns”. It estimates that 13 companies from Asia have reached that status, making the region the most represented after North America, and ahead of Europe.

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.css-1m2rp1p{color:#34b8b5;}Eye on Asia | US and China must return to climate cooperation soon – without Asia, the energy transition will fail

Eye on Asia | US and China must return to climate cooperation soon – without Asia, the energy transition will fail