The Asia Pacific region plays a pivotal role in the battle against climate change due to its extensive population, significant economic sway, and substantial carbon emissions. With nearly 60% of the world’s population, APAC contributes a 45% to the global GDP and carries approximately 50% of worldwide corporate emissions. The region is poised to play a pivotal role in accelerating climate action efforts in the coming years. In this article, we will delve into why the APAC market is crucial to fight climate change.
THE SUSTAINABILITY OPPORTUNITY IN ASIA PACIFIC
The Asia Pacific region represents a colossal opportunity for sustainability initiatives, with the potential to unlock substantial economic growth. According to the World Economic Forum (WEF), Asia alone could tap into a $4.3 trillion revenue opportunity by 2030 through activities like expanding renewable power, enhancing energy efficiency, and promoting circularity in industries. In the face of mounting global climate challenges, rapid action toward achieving Net Zero emissions is imperative for corporate success.
GLOBAL SUPPLY CHAINS AND THE ASIA PACIFIC CHALLENGE
APAC has evolved into a prominent global manufacturing hub, intricately weaving its production capabilities into worldwide supply chains. This interdependence presents a formidable challenge for numerous global companies, as the emissions stemming from production activities within this region significantly contribute to their Scope 3 emissions. To address this issue, policies, like the European Union’s Carbon Border Adjustment Mechanism (CBAM), come into play, exerting pressure on importers into the EU, many of whom originate from Asia Pacific countries. CBAM also fosters strengthened partnerships by promoting sustainable practices throughout the entire supply chain.
THE ROLE OF POLICIES AND MECHANISMS
Institutions in Asia Pacific are also increasingly embracing sustainability. Governments in the region are implementing clear environmental policies, such as the Singapore Carbon Tax, to address climate change, signaling a commitment to transformation. These policies have far-reaching impacts across sectors of the global economy. Europe’s recent introduction of the CBAM further emphasizes the need for a holistic approach to decarbonization throughout the whole supply chain.
COLLABORATIVE ACTION FOR A SUSTAINABLE FUTURE
Asia’s decarbonization rate lags behind the world average, underscoring the urgency for action. Strive by STX’s deep understanding of upcoming policies and sector-specific needs allows us to design long-term decarbonization roadmaps for companies in Asia Pacific and Australia, ensuring they can transform their environmental liabilities into business progress and opportunities. If you wish to start your decarbonization journey, contact us.
Contact us to find out more information about how we can support your company to decarbonize.