On 12 December 2015, the UN Climate Change Conference (COP21) in Paris reached a breakthrough. Hence, the historic Paris Agreement was born.
The Agreement sets long-term goals to guide all nations to substantially reduce global greenhouse gas emissions to hold global temperature increase to well below 2°C above pre-industrial levels and pursue efforts to limit it to 1.5°C above pre-industrial levels. The Paris Agreement is one of the most significant events to occur in the 21st century as it was the first multilateral agreement signed to combat the rising of global temperature and the first step to net-zero emissions.
Speaking from a financial standpoint, the Agreement also has a notable impact on how it affects current and future economic policies. All future economic policies now revolve around emissions, especially carbon emissions which reflects the long-term goal of substantial reductions in greenhouse gas (GHG) emissions.
In the same year as well, the 2030 Agenda for Sustainable Development Goals was finalised. 17 goals were written to promote prosperity and to protect the planet. Out of all the goals, Goal 7 was the one explicitly stating the need for affordable and clean energy. However, all of the goals are interlinked. Transitioning to clean energy must go hand in hand with eradicating poverty and building strategies towards economic expansion.
On this matter, carbon capture, utilisation and storage emerges as a significant tool to ensure affordable, clean energy. The CCUS market is valued at USD 5.32 billion in 2022 and projected to reach USD 24.47 billion in 2032. Southeast Asia is well positioned to be a leader in CCUS, especially in Malaysia where it has the dual advantage of suitable geology and government initiatives.
ALECA Sdn Bhd works with industry and governments to build cost effective storage and utilisation projects across Southeast Asia and can further study the nearest opportunity for your organisation. By signing up for our Economics of Carbon Capture Utilisation and Storage course, you too will be able to recognise the economic cost of CCS/CCUS in relation to carbon pricing mechanisms, calculate the carbon footprint, construct economic evaluations, reach Sustainable Development Goals and test the impact on overall economic sustainability.
Accelerate your path to NetZero with ALECA Sdn Bhd today!