Sam, what are no-carbon Industrial Development Zones, and why is everyone talking about them?
No-carbon Industrial Development Zones – IDZs for short – are city-scale business parks that are powered entirely by renewables.
Why is this game-changing?
Working on renewable energy supply at this scale offers opportunities and leverage that are not available to individual companies. If designed the right way, IDZs can offer a ready-made pathway to decarbonisation – for both global corporate giants and small to medium operations.
Are we looking at new blueprint for decarbonisation worldwide?
Potentially – and the effects could ripple through global supply chains.
Who in Asia is at the forefront of this?
China. The country has elevated its no-carbon IDZs to a national strategic priority. They’re pioneering a massive built-out, with wind, solar, hydro, and energy storage systems being rolled out at an incredibly large scale across designated industrial areas.
But other Asian players are already following suit. South Korea for instance, where RE100 has been very present over recent years, is planning to build “RE100 industrial complexes”.
It’s not just about carbon, is it?
It’s about speeding up industrial development. The ability to offer low-carbon business locations with a ready supply of renewables is providing an advantage to export economies that want to be attractive to global corporations and their supply chains.
And companies?
For any company that cares about its energy security and competitiveness, strategic alignment with renewable electricity is the only sensible choice.
Now, if someone is telling you, locate yourself in a hub where all of that is already been taken care of – that’s quite an attractive proposition, isn’t it?
So, can we expect large-scale industrial transformation from this model?
This will be one of the most dynamic developments to watch across Asia over the coming years, and the Climate Group Asia Action Summit, in Singapore in May, will be a key arena to share the latest developments – and see where we might be headed.
Sam Kimmins is Climate Group’s Director of Energy. The Climate Group Asia Action Summit, on 21 May in Singapore, will convene forward-looking leaders from business, government and civil society to chart new pathways for solutions as this dynamic region is driving vital transitions across energy, transport and industry.