• Emission reduction targets in Asia vary from country to country, but most nations have a roadmap in place to curb greenhouse gases significantly
• More than the half of the world’s GHG is being released in Asia-Pacific
• Investment opportunities include renewable energy development, BESS solutions, smart grid technologies, and EV infrastructure

This is a crucial time for Asia as it looks to balance economic growth with environmental goals. Despite ongoing decarbonisation efforts, roughly 60 percent of global CO2 emissions and a little more than 50 percent of greenhouse gas emissions originate from Asia and the Pacific. Ultimately, the next two decades will be defined by the region’s ability to navigate the clean energy transition, build up electric vehicle infrastructure and rein in output. Asian Insiders Managing Partner, Jari Hietala, shares an overview of emission reduction targets in Asia.

Emissions output in Asia is delicately poised. On one side, China, India, Japan, and Indonesia rank among the top 10 global greenhouse gas (GHG) emitters. Approximately half of the world’s GHG is being released in Asia-Pacific. On the other hand, nearly every country has set ambitious targets to lower these significantly over the next 25 years.

This has created a sense of urgency to make progress. Some nations are well on their way to reaching stated goals while others find themselves in the early stages. One common denominator across Asia is a need for technologies, services and knowledge that can ensure there are no setbacks.  

Overseas firms are aiding in efforts. Many markets are keen on further investment and have implemented favourable policies featuring incentives. In some countries, full foreign ownership of entities in certain segments is permitted. 

Overview of emission reduction targets in Asia

China

With China accounting for nearly a third of global emissions, the country continues to explore ways to reduce output. Its primary focus has been CO2 emissions. These are expected to peak in the coming years, and the government has committed to achieving carbon neutrality by 2060. Plans for curbing other GHGs are less defined.

Recently, President Xi Jinping announced the country would outline new emission reduction goals covering the entire economy and all greenhouse gases sometime before the COP30 summit. No target was given, but experts believe 2035 is a possibility.

China has been a leader in both renewable energy and electric vehicle (EV) adoption as well as the implementation of green building requirements. Questions remain over the country’s ability to phase out oil and coal which are necessary to reach carbon neutrality.

Japan

Japan seeks to reduce GHG emissions by 46 percent in 2030 and 60 percent in 2035 from 2013 total. The country also has set a goal of achieving Net Zero emissions by 2050. Several obstacles must be overcome if the world’s fifth-biggest carbon emitter is going to fulfil those pledges.

The country has been slow to embrace EVs with a limited infrastructure causing the public to opt for hybrid electric vehicles. Power generation from renewables still lags behind the global average and will likely remain below this threshold for the remainder of the decade.

Hydrogen is expected to play a key role in decarbonisation efforts, and there is a heavy emphasis on green hydrogen production in the country. This could significantly reduce emissions in manufacturing activities.

India

India has laid out several clean energy targets, including 500 gigawatts of installed energy capacity from non-fossil fuel sources by 2030 and Net Zero emissions by 2070. A study published by the CEEW Centre for Energy Finance found India requires at least USD10 trillion in clean energy investment to reach the latter with a USD3.5 trillion funding gap needing to be filled.

Offshore wind, floating solar, battery energy storage systems (BESS) and advanced innovations are all currently in demand. The country permits 100 percent foreign direct investment in renewable energy generation and distribution projects. Click here to read more about India’s plans for clean energy.

South Korea

South Korea aims to achieve carbon neutrality by 2050. However, it will need to rapidly scale up renewable energy production in addition to improving in various areas to reach this. The country was the seventh-largest energy-consuming nation globally in 2022, yet renewables comprised only a small percentage of power generation.

Nuclear, coal and LNG comprised more than three-quarters of all power produced in 2023. The Ministry of Trade, Industry, and Energy (MOTIE) goal for renewables to make up at least 30 percent of Korea’s energy mix was delayed from 2030 to 2036.

The country is searching for various solutions to improve things. Smart Grid technology and tools are highly desirable. Hydrogen mobility and usage in other applications will assist in emission reduction goals. Korea is currently exploring ways to build infrastructure to ensure it is possible.

Taiwan

A commitment to becoming Net Zero by 2050 saw Taiwan announce more ambitious emission reduction targets in early 2025. It pledged to cut carbon output by 26-30 percent by 2030 when compared to 2005 levels. This was up from the original 23-26 percent target.

Several strategies have been laid out, including increasing wind and solar energy sources, developing hydrogen capabilities, developing EV infrastructure and digitising energy grids in addition to other programmes.

Southeast Asia

All major Southeast Asian countries pledged to reduce GHG and carbon emissions, although the amount and timelines vary. Malaysia is targeting Net Zero by 2050. Thailand has a carbon neutrality goal for 2050 and Net Zero by 2065. Indonesia has a strategy to reach Net Zero by 2060. The Philippines, Cambodia, Vietnam and Singapore each have plans in place.

There is a sense of urgency in the region given how nations here are among the most vulnerable to climate change. Governments are promoting green policies and encouraging overseas companies to invest through incentives.

The need for foreign investment

Countries looking to reach emission reduction targets in Asia seek foreign investment to assist with their efforts. There is a lack of technology and expertise in many areas. Opportunities differ in each market.

The most common needs are related to developing renewable energy, BESS solutions, smart grid technologies and EV infrastructure. However, this is not a comprehensive list. As mentioned, a few countries are exploring the potential of hydrogen.

Doing thorough research and understanding these needs will allow your company to find the best markets. Enlisting support from a market entry specialist, such as Asian Insiders, can take the guesswork out of that process. Whether it is finding a suitable location for your business or locating possible partners, our team of in-country experts creates the optimal strategy.

Want to learn more about opportunities in Asia related to renewables, EVs, and other sectors? Schedule a no-obligation call with Jari Hietala, Managing Partner: jari.hietala (at)asianinsiders.com