The resource, Decarbonization Pathways and Energy Investment needs for developing Asia in line with ‘well below’ 2°C, explores potential future pathways for developing Asia’s energy consumption, CO2 emissions and infrastructure investment to enable countries to accomplish the global climate targets set out in the 2015 Paris Agreement.
Key policy insights from the paper include:
Governments will need to employ a variety of policy mechanisms, including mandates and subsidies for renewables and electric vehicles, efficiency standards for end-use technologies, and bans on free-emitting fossil fuel plants, among others.
Relative to the baseline scenario for developing Asia, the scale of investment into low-carbon energy to 2050 may need to double for a 2°C scenario, and to triple for 1.5°C. Policy instruments such as green finance are essential for this region to mobilize a broadened channel of investment, particularly from the private sector.
Low-carbon investment would significantly reduce the capital investment needed to achieve the SDG target for air quality, but increase the requirements for meeting targets on clean water and food security, though only to a small extent.