ACEC launches to rapidly drive corporate clean energy procurement in Asia

11 November 2022 -  Launching at the B20, organised by the Indonesia Chamber of Commerce and Industry, and COP27, ACEC will strategically improve the policy and regulatory environments for clean energy, in both national and regional Asian markets. The coalition seeks to align the world’s leading clean energy buyers, project developers and financiers, to help policymakers, utilities and energy regulators innovate and deploy cost effective clean technologies across the Asia-Pacific region.

Founding members of ACEC include Amazon, Apple, Cisco, Enel Green Power, Google, Iberdrola, Ingka Group (Largest IKEA franchisee), Mainstream Renewable Power, Meta, Nike, Ørsted, Samsung Electronics and Sembcorp.

In the Asia-Pacific region, there is a strong appetite to invest in clean energy – with an estimated $1.3 trillion in investments in renewable energy capacity expected by 2030 – double that of the previous decade. The existing power systems of the region are heavily reliant on coal, gas and other fossil fuels. In Southeast Asia in particular, under current Association of Southeast Asian Nations (ASEAN) policy settings, solar and wind’s share of the power mix will only scale up to 11% by 2030 – far below the potential for the region and inadequate to meet global and national decarbonisation goals.  

For governments across Asia seeking capital investment, energy security and sustainable economic growth, ACEC will provide strategic advice based on real demands from clean energy buyers, sellers and financiers, and guidance informed by regional and international best practice. For non-government actors seeking to promote clean energy in Asia, ACEC will be an expert hub for strategic communications and policy coordination, helping to maximise impact.

“There’s an urgent need to raise awareness of the large and growing corporate renewable electricity demand in Asia. The policy and regulatory environments in many parts of Asia are not set up for cost-effective, efficient corporate procurement of renewable electricity and this must be fixed if these countries are to reach their decarbonisation goals,” said Sam Kimmins, Director of Energy and Head of RE100, Climate Group.

The coalition’s vision for 2030 is that clean energy in Asia’s markets is accessible, affordable and accountable at scale, with effective procurement frameworks, regulation and investment. Companies are meeting their clean energy demands and countries are meeting their clean energy goals.

For context, according to data from RE100, in 2019-2020, RE100 member companies covered only 16% of their electricity consumption in Asia-Pacific with renewable electricity, compared to 59% in North America and 81% in Europe. Solar and wind only supplied 4% of the electricity in ASEAN in 2021, and renewable electricity generation was estimated to have only met 39% of the ASEAN electricity demand rise over 2015-2021. Meanwhile, regional natural gas demand is projected to grow steadily to 2050, creating a fossil fuel ‘lock-in’. For these reasons, ACEC will marshal and amplify global, regional and local voices for market reforms, and drive investment in net zero solutions.

“Asia is one of the world's battlegrounds for the transition from coal power to clean energy. Buyers, generators and investors of clean energy can play a critical role in driving the transition in the region. There is huge potential for wind and solar power to transform Asia's electricity mix, providing accessible, affordable and large-scale power that can turbocharge sustainable growth. Working with our partners and companies in this coalition, we look forward to nurturing more conducive policy environments for cost-effective corporate renewable energy procurement on the ground,” said Ben Backwell, CEO, Global Wind Energy Council.

“WRI and our partners in the Clean Energy Investment Accelerator recognize the current barriers to corporate decarbonization in Asia require urgent policy and market action. As part of a growing corporate decarbonization movement, ACEC helps the largest energy buyers in Asia collaborate with government on policy options for renewable energy deployment, faster supply chain electrification, improved energy security, and economic growth,” said Jennifer Layke, Global Director of Energy, World Resources Institute.

“Providing clean and renewable energy solutions that are more affordable and accessible remain a key element in shaping a sustainable future especially in Asia, a major regional hub of economic growth. Samsung Electronics, with its headquarters and numerous operational sites in Asia, is excited to work with ACEC and its partners to support the region in this transition to drive climate action," said Inhee Chung, Vice President, Corporate Sustainability Center, Samsung Electronics.

“To mitigate the worst impacts of climate change, we must decarbonize electricity grids as quickly as possible – that is why Google has a goal of operating on carbon-free energy everywhere, at all times by 2030. Coalitions like ACEC are critical to unify energy buyers and align our voices to bring about the system-level transformation required for a carbon-free electricity future in Asia,” said Marsden Hanna, Head of Sustainability and Climate Policy, Google.

“Since 2020, Meta’s global operations have been supported by 100% renewable energy. As our operations and value chain grow, access to renewable energy becomes ever more important. We helped found the Asia Clean Energy Coalition to highlight the importance of access to clean energy to companies’ sustainability goals. We look forward to continuing to work with a broad array of energy suppliers, policy makers and other partners to bring additional new wind and solar energy to APAC grids. Together, we will send a powerful signal that can help transform APAC energy markets towards a cleaner future,” said Edward Palmieri, Senior Director, Meta Global Sustainability.

“Accelerating the renewable energy transition and decarbonizing the energy sector is key to limiting global warming to 1.5°C. Countries in Asia have a big potential to transition towards renewable energy, so it’s critical to create the enabling policy and regulatory framework that the Asia Clean Energy Coalition is working towards. We are delighted that Ingka Group can contribute to this as a founding member. For us, partnerships and collaborations have always been a cornerstone of our work, and this is more important now than ever to drive the next level of action. Besides accelerating the transition to renewable energy in Asia, the coalition will also support us to reach our renewable energy targets,” said Karen Pflug, Chief Sustainability Officer, Ingka Group (Largest IKEA franchisee).  

“As the world's largest corporate purchaser of renewable energy, Amazon is on a path to 100% renewable energy globally,” said Michael Punke, Global Vice President for Public Policy at Amazon Web Services (AWS). “We have 11 utility-scale renewable energy projects in the Asia-Pacific region with more than 1,000 megawatts of renewable energy capacity, including three new projects that we announced in India recently as a result of unlocking corporate renewable procurement options in the country. We believe that the Asia Clean Energy Coalition will send a strong demand signal to encourage greater availability of corporate renewable energy options across Asia.”