Aerial view of a wind-solar hybrid photovoltaic power station onSept 12, 2020 in Zaozhuang, Shandong province of China.
Li Zongxian|Visual China Group|Getty Images
SINGAPORE– Asia might move faster in its shift to renewable resource, stated an executive from Sembcorp Industries, a Singapore- based power and city advancement business.
“Definitely in terms of accelerating the transition, we could go faster,” Eugene Cheng, the business’s group chief monetary officer, informed CNBC’s “Squawk Box Asia” on Thursday from the environment conference Ecosperity Week.
Cheng was asked if rising gas costs in Europe and a continuous power crunch in China showed that the world is moving too gradually towards renewable resource and net-zero carbon emissions.
The executive stated renewable resource represent more than 20% of typical energy generation throughout Asia, compared to more than 40% in Europe.
“So, I think we do need to drive a transition quicker and that will take a combination between governments and also the private sector,” he stated.
Sembcorp released a “sustainability-linked bond” on Wednesday to raise 675 million Singapore dollars ($496 million). The 10.5- year bond has a voucher rate of 2.66%, which will be raised by 25 basis points if the business does not satisfy its target to cut the strength of carbon emissions.
To satisfy the target, Sembcorp intends to increase by 4 times its capability to produce energy from sustainable sources to 10 gigawatts by 2025, stated Cheng.
The business is stepping up renewable resource tasks throughout Asia, with a specific concentrate on solar and wind tasks in China, India and Southeast Asia, he included.
