Demand side management needed to meet green targets. In order to meet ambitious global targets for reducing CO2 emissions, there needs to be a renewed focus on energy efficiency (EE) to reduce energy wastage. Under the Paris Agreement, Asian countries have pledged to reduce emission intensity by up to 65 per cent in 2030 (using 2005 as a baseline line).
What is energy efficiency (EE)? EE is the concept of using less energy to perform the same task, thus eliminating energy wastage. The benefits of EE are significant. Adopters will: (a) reduce carbon footprint, (b) enjoy cost savings; and (c) enjoy non financial benefits such as improved image and branding by being Environmental, Social and Governance (ESG) friendly.
Buildings are a key contributor to CO2 emissions. Buildings and construction projects are significant contributors to global CO2 emissions, accounting for 39 per cent of total emissions. Given this and to address issues of sustainability and meet government targets to reduce pollution, we believe there needs to be a refocus on buildings’ EE.
Compelling investment opportunities. We see significant opportunities for EE. Using a conservative bottoms up approach, we estimate investment opportunities of S$9.6bn by 2030 in key Asian markets including Singapore, Malaysia, Indonesia, Thailand, Hong Kong SAR and Mainland China. Our estimates are conservative as we assume an adoption rate of only 20 per cent for commercial buildings and 30 per cent for industrial buildings.
UOB’s role to support EE. UOB is committed to playing its part to improve the environment. Through UOB’s Smart City Sustainable Finance Framework (UOBSCSFF), we are making EE and other sustainable city solutions more accessible to large and small companies to help them embark on their sustainable journey.
Companies keen to participate on the exciting opportunities from the expected pick-up in the adoption of EE or related sustainable city solutions can contact us here.