The COVID-19 pandemic and the global recessions have reduced the investments in green projects globally that would endanger the achievement of the climate-related goals. Therefore, the post-COVID-19 world needs to adopt the green financial system by introducing new financial instruments. In this regard, green bonds—a type of debt instrument aiming to finance sustainable infrastructure projects—are growing in popularity. While the literature does not contest their effectiveness in fighting climate change, research highlights the high level of risks and low returns associated with this instrument. This study analyzes the green bond markets in different regions with a focus on Asia and the Pacific. It aims to fill the gap in the literature by conducting a comparative study of the characteristics, risks, and returns of green bonds based on the region. The study is based on theoretical background and empirical analysis using the data retrieved from Bloomberg New Energy Finance and the Climate Bonds Initiative. The empirical results are based on several econometrics tests using panel data analysis estimation methods, namely pooled ordinary least squares and generalized least squares random effects estimator. Our findings prove that green bonds in Asia tend to show higher returns but higher risks and higher heterogeneity. Generally, the Asian green bonds market is dominated by the banking sector, representing 60% of all issuance. Given that bonds issued by this sector tend to show lower returns than average, we recommend policies that could increase the rate of return of bonds issued by the banking sector through the use of tax spillover. In the era of post-COVID-19, diversification of issuers, with higher participation from the public sector and de-risking policies, could also be considered.

Southeast Asia faces one of the fastest growths in electricity demand in the world, driven by increasing incomes, urbanization and industrialization. Development and deployment of green energy technologies offer a natural conduit to meet the growing electricity needs of the Association of Southeast Asian Economies (ASEAN) region while also serving as a viable strategy to adapt to climate change. The aim of this study is to formulate the policy lessons for the ASEAN economies and governments in facilitating the development and deployment of green technologies and alternatives energy options based on a specific case review of the ASEAN. The ASEAN economic region is prioritizing sustainable economic growth while minimizing the regional impacts of climate change through decarbonization. The study undertakes a case-specific analysis in reviewing green energy deployment in the context of green growth and energy transition using secondary data sources and discusses the current status and future options of renewable energy development in the ASEAN. We find that carbon capture and storage (CCS) technologies will allow the ASEAN to continue to use fossil fuels while achieving sustainable economic growth as coal demand increases in the region. The deployment of CCS technologies will also act as an enabler of hydrogen energy as a green energy solution in the region in the longer term. Boosting public acceptance to nuclear energy, implementing energy efficiency improvement policies and eliminating fossil fuels consumption subsidies are feasible short-term and medium-term policies. Increasing both the public and private sector energy investments and development of CCS technologies in the longer term are necessary complementary policies to maximize the benefits of greater deployment of renewable energy sources in the region and combat climate change.

The Association of Southeast Asian Nations (ASEAN) faces tremendous challenges regarding the future energy landscape and how the energy transition will embrace a new architecture—including sound policies and technologies to ensure energy access together with affordability, energy security, and energy sustainability. Given the high share of fossil fuels in ASEAN’s current energy mix (oil, coal, and natural gas comprise almost 80%), the clean use of fossil fuels through the deployment of clean technologies is indispensable for decarbonizing ASEAN’s emissions. The future energy landscape of ASEAN will rely on today’s actions, policies, and investments to change the fossil fuel-based energy system towards a cleaner energy system, but any decisions and energy policy measures to be rolled out during the energy transition need to be weighed against potentially higher energy costs, affordability issues, and energy security risks. This paper employs energy modelling scenarios to seek plausible policy options for ASEAN to achieve more emissions reductions as well as energy savings, and to assess the extent to which the composition of the energy mix will be changed under various energy policy scenarios. The results imply policy recommendations for accelerating the share of renewables, adopting clean technologies and the clean use of fossil fuels, and investing in climate-resilient energy quality infrastructure.

The power generation mix of the Association of Southeast Asian Nations (ASEAN) is dominated by fossil fuels, which accounted for almost 80% in 2017 and are expected to account for 82% in 2050 if the region does not transition to cleaner energy systems. Solar and wind power are the most abundant energy resources but contribute negligibly to the power mix. Investors in solar or wind farms face high risks from electricity curtailment if surplus electricity is not used. Employing the policy scenario analysis of the energy outlook modelling results, this paper examines the potential scalability of renewable hydrogen production from curtailed electricity in scenarios of high share of variable renewable energy in the power generation mix. The study found that ASEAN has high potential in developing renewable hydrogen production from curtailed electricity. The study further found that the falling cost of renewable hydrogen production could be a game changer to upscaling the large-scale hydrogen production in ASEAN through policy support. The results implied a future role of renewable hydrogen in energy transition to decarbonize ASEAN’s emissions.

The efforts towards the liberalization of electricity markets have sped up recently in some countries within the Association of Southeast Asian Nations (ASEAN) region. This step of opening up the electricity markets is aimed at establishing competitive and efficient electricity markets that not only reduce electricity prices, but also support a sustainable future by reducing carbon dioxide (${\mathrm{CO}}_2$) emissions from electricity generation and promoting the wider adoption of renewable energy (RE)-based electricity generation. This paper assesses the effects of the electricity market liberalization process in Singapore and the Philippines on these expected outcomes during the period 2015–2020. The regression analysis results suggest that in the specified period, the liberalization of the electricity market in Singapore has delivered both household and industry electricity price reductions and improvement in the RE share. However, there is no significant effect of the electricity market liberalization process on the electricity generated ${\mathrm{CO}}_2$ emissions. For the same period, the results imply that with the electricity market liberalization process in the Philippines, the electricity prices for household consumers and electricity-generated ${\mathrm{CO}}_2$ emissions have increased. Additionally, the liberalization process has no significant impact on both the RE share and industry electricity prices in the Philippines. To overcome the obstacles and strike a balance between the expected outcomes, policy recommendations are given for ASEAN economies following the pathway of liberalized electricity markets.

A large potential exists in the Southeast Asia region for deployment of high-efficiency, low-emission (HELE) electricity generation technologies. A cost–benefit analysis of HELE technologies compared to the less efficient subcritical electricity generation plants is thus carried out to find a persuasive scenario supporting quicker transition from subcritical stations towards HELE technologies in the region. A levelized cost of electricity (LCOE) analysis is carried out for both technologies under four potential policy scenarios. Scenario 1 does not take into consideration any carbon pricing or costs associated with the desulphurization (deSOx) and denitrification (deNOx) facilities. Scenario 2 (Scenario 3) incorporates carbon pricing (costs associated with the deSOx and deNOx facilities), and Scenario 4 includes both carbon pricing and costs associated with the deSOx and deNOx facilities. Under each scenario, a sensitivity analysis is performed to evaluate the uncertainty affecting the future coal prices. This study demonstrates that HELE technologies are competitive against the subcritical plants under all four scenarios and both the technologies derive benefit from lifetime extensions and low coal prices. It is revealed that future deployments of HELE technologies can be best expedited by factoring in carbon pricing in LCOE costs of coal-fired power plants under Scenario 2.