Asia could accelerate transition to renewable energy, says energy company executive

Aerial view of the Wind-Sun Mix Photovoltaic Power Station in China’s Shandong Province on September 12, 2020.

Lee Zongshian | Visual China Group | Getty Images

Singapore-Asia could move quickly when it comes to renewable energy, said Simbkorkor Industries, a Singapore-based energy and urban development company.

“In terms of accelerating the transition, we can move faster,” the company’s chief financial officer, Eugene Cheng, told CNBC’s Squawk Box Asia.

Cheng was asked if rising gas prices in Europe and the slowdown in energy in China indicate that the world is moving toward renewable energy and zero-zero carbon emissions.

According to the executive, renewable energy accounts for more than 40% of the total energy production in Asia compared to more than 40% in Europe.

So I think we need to speed up the transition and that requires a partnership between the government and the private sector.

Sembcorp on Wednesday launched a “sustainability bond” to raise $ 675 million ($ 496 million). The 10.5-year bond has a 2.66% coupon rate, and if the company does not meet its target of reducing carbon emissions, it will rise by 25 points.

To achieve that goal, Cheng said it aims to quadruple its capacity to generate 10 megawatts of power from renewable energy sources by 2025.

He said the company was developing renewable energy projects throughout Asia, focusing on solar and wind projects in China, India and Southeast Asia.

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