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Nhan đề: Perceptions of climaterelated investment risk in Southeast Asia’s power sector
Tác giả: Pont, Peter du
Gueguenteil, Cannelle
Johnson, Oliver
Từ khoá: Investment
Southeast Asia
Năm xuất bản: 2020
Tùng thư/Số báo cáo: Stockholm Environment Institute (SEI) Working Paper;pp. 1 - 22
Tóm tắt: Given the growing international pressure to mitigate climate change and increasing fears around climate impacts, current expectations of continued investment in fossil fuels in Southeast Asia’s power sector appear puzzling. This paper explores how power sector investors perceive climaterelated risks and how they factor these risks into investment decision-making. In doing so, we seek to explain (a) why countries in Southeast Asia are making plans for – and investors are continuing to invest in – fossil-based power generation instead of renewable or clean generation options, and (b) what it would take to substantially shift investment from fossil generation into renewable options in the region. In order to understand how investors in Southeast Asia considered climate-related risks when making investment decisions, we undertook interviews with 17 industry experts working in Southeast Asia’s power sector. --- Overall, the results from our analysis suggest that there is currently a significant gap between the need to integrate climate risks within investor decision-making and the way these risks are currently being integrated and addressed in the Southeast Asia power sector. Our analysis shows that climate risk is either not a significant factor, ignored in light of other concerns, or only superficially integrated into decision-making. We discuss the factors behind these findings and question the assumption that risk is one of the main drivers of investment decision-making. We draw attention to other important factors, seldom reviewed in the literature, that lead investors in the power sector in Southeast Asia to either actively avoid, downplay, or ignore the potential impact of climate risks. The results of this research point to an urgent need for action targeted at energy-sector investors in order to: -- shed light on climate-related investment risks -- share information on the likelihood and magnitude of risks -- lay out clearly the potential for stranded assets in a 10 to 15-year time frame, and -- encourage transparent, open and respectful dialogue and discussion on these critical issues.
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