Paris Agreement and Globalization of Low-Carbon Technologies: What’s Next for Asia?

Abstract

The adoption of a new climate agreement by Asian countries in Paris in December 2015 has global implications. Carbon mitigation targets are expressed in their Intended Nationally Determined Contributions (INDCs). The pledges clearly indicate that the energy sector presents the best opportunity for the region to meet the global commitments in a cost-effective way. This can be achieved by a transformative shift and massive adoptions of low-carbon technologies (LCTs). The region already possesses much of the technologies to achieve the carbon emission reductions at a level required. But for all economies to enjoy the economic and environmental benefits of LCTs, the implementation plan of INDCs must be coordinated in global, national, and local context. The cost of INDCs through globalization of LCTs can be modest, if policy adjustments are made immediately. Tailored to specific country conditions and the level of maturity of the technologies, a policy mix should focus on adopting a system level approach, building institutional and human capacity for globalization of LCTs, strengthening domestic industry, and creating a market-friendly environment.