Two-thirds of Asian firms feel government pressure to go green

A third are looking to invest in offshore wind.

Nearly two-thirds or 64% of senior business leaders in Asian G20 countries feel great pressure from the government to invest in low-carbon power, according to a survey by law firm Ashurst.

Government pressure was also identified as the largest source of duress for low-carbon investment in the region, leaders revealed in the survey. Other sources of pressure cited were non-government organisations (NGOs), corporate boards and institutional investors.

Offshore wind was selected by 32% of respondents in Asia as a technology in which they plan to invest over the next five years. This would build on Asia’s existing offshore wind credentials, with 47% in Japan, 37% in China and 35% of respondents in India already investing in the technology.

“Many companies from Asian countries have been investing in European offshore wind for a number of years and, as the technology has matured to subsidy free prices, it is natural that these countries are looking to their own shores instead,” commented Ashurst senior associate Peter Grayson.

Further, 18% of respondents in the G20 stated that they already invest in or want to invest in renewable energy, energy transition and decarbonisation technologies in Southeast Asia in the next five years.

Beyond Asia, 94% of respondents in the G20 expect their organisation's investment in the energy transition to increase over the next five years, with the average increase expected to be a massive 43% in dollar terms.