Investment Institute
Macroeconomic Research

Asia’s decarbonisation potential


Key points

  • Rapidly growing energy demand has seen Asia (excluding China) rank consistently among the top contributors to global CO2 emissions
  • Intensive use of coal, which makes up 60% of the region’s energy mix, by heavy industrial users and a large transportation fleet has been the main culprit of emissions
  • The decarbonisation of Asia’s economies will bring many benefits. Apart from reducing environmental costs and risks, it could also improve energy security and trade balances of Asia’s energy net importers
  • Governments across the region have announced ambitious plans to reduce emissions, with some making explicit pledges to substantially increase the use of renewable energy. But this will take time and require vast investment
  • However, there are multiple challenges along the carbon neutral pathway. Due to fossil fuel dependence, many Asian countries still have policies that continue to encourage high levels of CO2 emissions. Only by phasing out the related subsidies and policies can market distortions be removed
Asia’s decarbonisation potential
Download the full article (473.89 KB)

Related Articles

Macroeconomic Research

US 2024 presidential election: The potential global impact

Macroeconomic Research

Eurozone GDP: Spain roars, Germany coughs

Macroeconomic Research

India’s economy: A compelling growth and investment story but challenges remain

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
    It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date.
    All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document.
    Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.
    Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ
    In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.

    Back to top