- Asia is at the heart of global renewables growth with influential companies reporting significant increases in the use of renewables in Vietnam and India, according to a new RE100 report.
- It also shows over half the electricity used by RE100 businesses in China is now renewable.
- High costs, limited supplies and a lack of procurement options were ranked as the top three barriers to renewables growth by RE100 members globally.
Asia is at the forefront of the global energy transition, with some of the world’s largest and most influential companies boosting the switch to renewables in the region. RE100’s latest annual report has found that its members, world-leading companies that are switching their electricity to be 100% renewable, are increasing their renewable electricity use across key markets in Asia.
Asia is the world’s manufacturing hub, critical in international supply chains, which has traditionally had a less developed renewable electricity market. That makes procurement of renewable power more challenging. Still, RE100 members increased their renewable electricity use in Japan (from 25% of their total electricity use last year to 36% this year), China (50% -> 59%), India (23% -> 39%), Vietnam (30% -> 51%), and South Korea (9% -> 12%). Meanwhile, the average performance in Europe has remained at 83% while in North America it has decreased by 1% to 65%.
This signals an important step-change in countries like Japan, India and China in particular, whose grids are heavily dependent on fossil fuels. Also, corporate ambition in the region shows no signs of slowing down, with nine of the 10 largest new RE100 joiners from 2024 headquartered in Asia.
“It’s incredibly encouraging to see Asian companies tapping into the enormous potential of renewable power and driving the global energy transition. Their demand is sparking a response from governments, unlocking yet more renewable electricity supply for these companies. If policymakers can work fast to remove the barriers that hamper the affordability and accessibility of renewables for corporates, it increases their competitiveness. They’ll attract significant private investment in their country’s energy transition and economy, becoming global green economic powerhouses.”
Ollie Wilson, Head of RE100, Climate GroupHigh costs, limited supplies of renewables and a lack of procurement options were ranked by RE100 members as the main barriers to renewables procurement. The top six most challenging markets were all in Asia – with South Korea ranked the most challenging.
RE100 has pushed for renewables growth in Asia through its policy recommendations for South Korea, Japan and India. For instance, after ongoing engagement with government officials on RE100’s policy recommendations in South Korea, the Korea Energy Agency is enhancing its Green Premiums program following RE100’s calls for greater transparency. RE100 also announced recently that it supported authorities to align China’s Green Electricity Certificates (GECs) system with international standards, meaning that both Chinese and global RE100 companies can now much more easily prove what renewables they are buying, and report on their progress towards their 100% renewable electricity goals.
CDP's Head of Energy, Andrew Glumac, said:
“Asia is emerging as the next frontier for renewables growth. While established markets in North America and Europe continue to perform strongly, this report provides further evidence to support a shift in focus among some of the world's biggest brands
RE100 members are increasingly expanding operations across Asia and looking to source clean electricity. But this doesn't come without its challenges and unlocking an earth-positive future requires urgent action. Policymakers need to move quickly to ease purchasing pain points and create the conditions to build out much greater renewables capacity at speed.”