As the world faces rising global temperatures and extreme weather events, transitioning to carbon-free energy has become a necessity. APEC economies are investing in innovative solutions to achieve carbon neutrality, while regions like Korea's Jeju Island are setting the benchmark for a sustainable future.
Energy powers our lives-from the moment we switch on a light in the morning to the cars we drive and the way our cities function. But fossil emissions are contributing to a climate crisis, including extreme weather events, rising sea levels, and worsening air pollution.
APEC economies, which account for a significant portion of the world's energy use, are now leading a shift towards clean energy. "Expanding clean electricity is essential to ensure stable and reliable power supply and to achieve carbon neutrality targets," said Dr Sunghee Shim, vice president of the Korea Energy Economics Institute (KEEI). "We must go beyond simply increasing renewable energy sources by incorporating various carbon-free energy technologies."
Why APEC is pursuing a clean energy goal
In 2014, APEC set a target to double the share of renewable energy by 2030 compared to 2010 levels. According to Dr Kazutomo Irie of the Asia Pacific Energy Research Centre (APERC), APEC has made significant progress in increasing renewable energy use and is very ahead of schedule in meeting its doubling goal.
"Between 2010 and 2022, the renewable energy share in power generation grew by 63.4 percent, rising from 15.58 percent to 25.46 percent," shared Irie. "With eight years remaining, from 2022 to 2030, it is also likely that APEC will meet its doubling goal in the power sector."
But despite the rise in the use of clean energy, carbon emissions are still growing. The reason? Energy demand is increasing faster than renewables can replace fossil fuels. Power generation from carbon-emitting sources is still expanding, which means emissions will keep rising unless the transition to carbon-free energy is accelerated at an even greater pace.
Understanding carbon-free energy technologies
Carbon-Free Energy (CFE) technologies refer to energy sources that do not produce or remove carbon emissions during generation. Unlike fossil fuels, which release greenhouse gases that contribute to global warming, CFE technologies include nuclear energy, renewable energy (such as wind and solar), and clean and low-carbon hydrogen and ammonia, energy storage system (ESS) and carbon capture and storage (CCS). This diverse mix of technologies helps to stabilize power supply and reduce dependence on carbon-intensive alternatives.
"To accelerate these energy transitions, we need to continue to endeavor to deploy and scale up carbon-free energy technologies for power generation and supply," said Eekno Jo, director general for Energy Policy at Korea's Ministry of Trade, Industry and Energy (MOTIE).
"To reduce carbon emission in the power generation, we need to transition to hydrogen and ammonia-based systems and expand carbon capture, utilization and storage (CCUS) technologies," added Hun-Jik Chung, principal researcher at the Korea Institute of Energy Technology Evaluation and Planning (KETEP).
The urgency of transitioning to CFE technologies cannot be overstated. According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C requires rapid and deep reductions in carbon emissions across all sectors. The energy sector, responsible for a significant portion of global emissions, is at the forefront of this transformation.
Progress in the region
APEC economies recognize that achieving carbon neutrality requires international collaboration. Various initiatives are underway to promote investment, technology exchange, and policy alignment in the energy sector.
One significant effort is the Carbon-Free (CF) Alliance, a global initiative aimed at promoting the adoption of diverse carbon-free energy technologies.
Additionally, economies such as Korea and Japan are working to develop certification standards for clean energy. Korea, for instance, introduced the Clean Hydrogen Portfolio Standard (CHPS), which mandates electricity companies to procure a designated amount of clean hydrogen power.
"Building global consensus on clean electricity use is crucial for accelerating industrial decarbonization," noted Dr Kihwan Kim, manager at CF Alliance. "A standardized certification system must be established to ensure credibility and consistency."
The roadblocks to change
Transitioning to a fully clean energy system is not easy. There are major challenges:
- Cost and infrastructure: Building solar farms, wind farms, and energy storage systems requires significant investment.
- Energy reliability: Unlike coal or gas, wind and solar power depend on the weather, making stable supply a challenge.
- Policy differences: Not all APEC economies have the same regulations for clean energy, slowing down progress.
- Technology development: More innovation is needed to improve energy storage and carbon capture.
From the private sector perspective, companies are struggling to balance the high costs of transitioning to carbon-free energy while remaining competitive in the market. For example, as commercialization of new technologies requires utilizing additional safety technology, suppliers are finding it difficult to predict the demand for CFE and to reflect the increased cost of safety in product prices.
"The government's support alone is not enough to promote the utilization of CFE in the industry," said Songhyun Baik, a partner at KEI Consulting. "The key will be what kind of business model is built in the end to encourage private sector investment."
Jeju: A model for a carbon-free economy
While large-scale implementation of CFE is still in progress, some regions are already making significant strides. Jeju Island in Korea serves as a prime example of a carbon-free future in action. The island, known for its UNESCO-recognized natural beauty, is also pioneering clean energy innovation. The island has committed to achieving 100 percent renewable energy and transitioning to green hydrogen power by 2035.
"Jeju believes carbon neutrality is an urgent task. It cannot be delayed any longer," stated Ambassador for International Relations Ki-Mo Lim of Jeju Special Self-Governing Province. "We strive for sustainable development that will be able to balance environmental protection together with the future industrial prosperity."
Jeju has already developed large-scale offshore wind projects and plans to increase its renewable energy capacity from 1 gigawatt to 7 gigawatts and increase power generation ratio from 20 percent to over 70 percent. Additionally, the province aims to produce over 60,000 tons of clean hydrogen annually to replace thermal power generation.
"We are focusing on implementing specific plans in various parts of the province to achieve carbon neutrality by 2035," Ambassador Lim added. "We are determined to implement a model that overcomes Jeju's geographical disabilities and limitation of Jeju's independent power grid and create a global energy transition model that can expand very beyond Korea."
What's next?
To accelerate the transition to carbon-free energy, experts encourage APEC economies to:
- Scale up investment: Governments and private sector players must invest in energy storage, transmission infrastructure, and emerging clean energy technologies.
- Enhance regional cooperation: Standardized certification systems and aligned policies on carbon-free energy are necessary for cross-border energy trade.
- Support technology innovation: Continued research and development in carbon capture, hydrogen fuel, and small modular nuclear reactors will play a vital role.
- Strengthen public-private partnerships: Engaging businesses and industries in the clean energy transition will drive faster adoption and economic benefits.
Given these challenges, APEC economies see an opportunity to collaboratively advance the development of clean and low-carbon hydrogen in the Asia-Pacific, aligning with efforts by other regional and global bodies.
At the 14th APEC Energy Ministerial Meeting in Peru, APEC energy ministers adopted the APEC Policy Guidance to Develop and Implement Clean and Low-carbon Hydrogen Policy Frameworks in the Asia-Pacific. The Policy Guidance serves as the framework to support APEC working groups in identifying potential areas for cooperation, fostering a well-integrated clean hydrogen ecosystem across the region.
Dr Sangyoul Lee, a research fellow at KEEI, pointed out that "the biggest challenge to the clean hydrogen expansion is its high cost, which is at least more than three times higher than gray hydrogen."
"To address this, Korea and many other economies are working to improve the economy's visibility of clean hydrogen," Lee added. "This involves two key aspects: One is defining what qualifies as clean hydrogen and the other one is determining how to support certified ones."
"Southeast Asia alone requires $210 billion in investment to achieve net-zero emissions by 2050," stated Inchul Hwang, senior energy specialist at the World Bank, highlighting the need for substantial investment in clean energy. He emphasized that "innovative financing mechanisms are crucial to ensure the successful transition to clean energy."
"It is a challenge to reduce carbon emissions in the power sector while simultaneously ensuring reliable electricity supplies and keeping electricity costs at a reasonable level," Irie concluded. "But it is also an opportunity because the innovative economies of APEC are likely to develop new technologies that will enable us to meet the decarbonization challenge while ensuring reliability and reasonable cost."
