Asian net zero energy transition will create a century-defining $37 trillion investment opportunity: new analysis

8 March 2021

A Paris-aligned transition to net zero emissions across Asia would create up to $US37 trillion out to 2050 in fresh investment opportunities in energy alone, a new analysis by the Asia Investor Group on Climate Change (AIGCC) finds.

The new AIGCC policy brief analysed the outputs of multiple global climate and energy modelling projects to help investors begin understanding the scale of investment opportunities that will be created across Asia in meeting the Paris Agreement goals.

The analysis finds that a transition consistent with keeping average global warming to 2°C or 1.5°C above pre-industrial levels would create $US26 trillion and $US37 trillion in new investment opportunities respectively, representing 1.7 per cent to 2.0 per cent of the continent’s Gross Domestic Product.

The brief also shows Asia is well positioned to make this transition with dramatically falling renewable energy costs and governments beginning to implement relevant policies and goals to unlock large-scale clean energy investment.

The proportion of GDP identified for a Paris-aligned transition is similar to current spending on energy and could be partially funded through the reduction of fossil fuel imports and redirection of fossil fuel capital expenditure.

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