BALI, 30th August, 2022 (WAM) -- The inaugural Investment Forum organised by the International Renewable Energy Agency (IRENA) is set to take place in Bali from 31st August to 1st September, 2022.
Co-hosted by Indonesia on the margin of its G20 Presidency Energy Transition Ministerial Meeting, the Forum aims to mobilise energy transition investment, ease access to finance and accelerate renewable energy projects in the Southeast Asian region.
A significant scale-up of financing is critical to meet net zero commitments in the region by mid-century. In the short-term, the aspiration of the Association of Southeast Asian Nations (ASEAN) to achieve a 35 percent renewable share in electricity capacity by 2025 looks within reach. IRENA's World Energy Transitions Outlook shows that over $US24 trillion of global investment must be redirected from fossil fuels to energy transition technologies by mid-century to achieve a climate-safe 1.5 C. In Southeast Asia, renewable power, grids and transition-related power technologies and infrastructure alone require over $US five trillion by 2050 corresponding to two-thirds of total energy investment needed.
By covering 65 percent of its final energy demand with renewables, ASEAN can reduce three-quarters of its CO2 emissions in 2050 compared to current policies, and in the process save energy costs of $US200 billion cumulatively by 2050. Jobs in the renewable sector would grow from around 1.3 million today to over five million by 2050.
Ahead of the Forum, Indonesian Energy Minister and G20 President Arifin Tasrif said, "Now is the right time to accelerate energy transitions by boosting clean energy investment. This decade is the decade of action, to achieve SDGs target and accelerate a just energy transition. Post-pandemic economic recovery and instability in the energy market are serious challenges faced by all countries. Global and regional cooperation is becoming more and more needed to push for collaboration for investment in the renewable energy sector and clean energy implementation. I hope this forum could bring different sides and together realise a just energy transition."
Francesco la Camera, Director-General of IRENA, added, "The speed of the global energy transition depends on progress made in Southeast Asia. Unlocking the region's renewable potential through investment will be a make-or-break in the fight against climate change. Indonesia's G20 priority to promote renewables for a sustainable recovery is the right way forward and sends a strong signal ahead of COP27. I hope this Forum contributes to the region's just transition efforts to decouple energy demand and decarbonisation from economic growth with real tangible socio-economic benefits for people and local communities."
By bringing together decision makers and leaders from governments, industry, project developers and investors from Southeast Asia, the Investment Forum creates enabling frameworks for investment, pipelines of bankable projects and facilitate access to finance. The Forum addresses policies and barriers to investment, the de-risking of projects and mobilising of capital.
Regional and sub-regional investment forums are a key element in the Agency's strategy to support the mobilisation of investments in energy transitions with concrete impact on the ground. The next Investment Forum focuses on West Africa and will take place in Abuja, Nigeria before the end of the year.