AVPN-亚太地区以人为本的能源转型：现在、方式和未来 The People-Centric Energy Transition in Asia Pacific The Now,The How,and The Future

ThePeople-CentricEnergy

TransitioninAsiaPacific:TheNow,TheHow,andTheFuture

SEPTEMBER2024

AboutthisPublication

●ThispublicationisacollaborativeeffortbetweenBostonConsultingGroup(BCG)andAVPNLimited,addressingkeyissuesrelatedtoPeopleintheEnergyTransitionacrossAsiaPacific.

●ItexaminesthecurrentstrategiesforaJustEnergyTransitionintheregiontounderstandthechallengesinadvancingthePeople-Centricagenda.Thispublicationservesasafoundationalframeworkratherthananexhaustiveanalysis,settingthestagefor

morediscourseandactiononthisagenda.

●Drawingfromengagementswith30+stakeholdersincludingindustryexperts,governmentofficials,businessleadersand

financialinstitutions,thinktanks,foundations,andNGOs,thispublicationoutlinesrecommendationsonthewayforwardand

introducesASCENT,aplatformdedicatedtoPeople-Centricsolutions,withCathayFinancialHoldingsasaninauguralsponsoroffutureinitiativesemergingfromASCENT.

Acknowledgements

●TheBostonConsultingGroup(BCG)andAVPNwouldliketothankthecontributingauthorsofthispublication:

○MarcSchmidt,ManagingDirector&Partner,BCG

○VaradPande,Partner&Director,BCG

○AnisMohdNor,Principal,BCG

○OmarAkbarKhan,Consultant,BCG

○WoonLiQi,Associate,BCG

○AravindanSrinivasan,ExecutiveDirectorofClimateActionPlatform,AVPN

○PatrickYeung,AssistantDirectorofClimateAction,AVPN

○SaranshMaheshwari,SeniorAssociate,AVPN

●Wearegratefultotheextendedteamthathavecontributedtothispublication,includingbutnotlimitedto:TheextendedBCGteam:DouglasBeal,NadiaShamsad,RachanaKanakagiri,SieunLee,AliaKaz,LaiKee

Vern,IanTan,AudreyGan,EugeniaSiah

TheextendedAVPNteam:NainaSubberwalBatra,KomalSahu

●WewouldalsoliketoextendourdeepestgratitudetotheglobalexpertsandleadershipteamatBCGandAVPNthathavecontributedtothedevelopmentofthispublication,aswellasover30expertsand

organisationsconsultedacrossAsiaPacificandbeyond,foryourcontributionstotheinsightsinthispublication-thispublicationwouldnothavebeenpossiblewithoutyou.

ForewordbyBCG

Climatechangeisthedefiningchallengeofourtime,andgovernments,companies,investorsandphilanthropiesworldwidearerisingtotheoccasionwithambitiousactions.BCGisattheforefrontoftheglobalclimatechangeandsustainabilityagenda,shapingthedialogueandworkinghandinhandwith

organisationsandgovernmentstoeffectchange.

Wepartnerwithourclientstoacceleratetheirclimateandsustainabilityefforts,fromclimatemitigationtoadaptationandresilience.Inallthatwedo,wetakeanecosystemapproachincludinglookingatthepeopleaffected,inparticularthosemostvulnerableintheworld.

DespitegrowinginterestsandinvestmentinEnergyTransition,"People",especiallymarginalisedgroups,workersinsunsetfossilfuelorrelatedindustriesandtheircommunities,andvulnerableconsumers,areoftenoverlooked.ThismustchangeandthePeoplemustbefrontandcentreofthetransition

process.WehavepartneredwithAVPNtoexplorethecurrentstateoftheJustEnergyTransitionandidentifythenecessarysolutionstoensureatrulyPeople-CentricEnergyTransition,intheshortandmedium-term.

Thispublicationisafirststep.WehopethispublicationwillbeaspringboardforcollectiveactiononPeople-CentricEnergyTransitioninAsiaPacific.InpartnershipwithAVPN,wewillseektomakesuchacollectiveactionagendaandplatformareality.

MarcSchmidt

ManagingDirector&Partner,

SocialImpactLeadforSEA,BCG

VaradPande

Partner&Director,

SustainableFinance&Investment,BCG

AnisMohdNor

Principal,Climate&Sustainability,BCG

ForewordbyAVPN

WearedelightedtopresentthisjointpublicationbetweenAVPNandBCG,whichisdedicatedtopromotingaPeople-CentricEnergyTransitionintheAsiaPacificregion.Thisregionishometomorethan4.3billionpeople,andisatacriticaljunctureinitsEnergyTransitionjourney.APeople-CentricEnergy

Transitionisnotjustaboutswitchingfromfossilfuelstorenewableenergysources.Itisaboutempoweringcommunities,creatingjobs,improvinghealth,andbuildingresilientsocieties.

ThisreportunderscorestheimportanceofaPeople-CentricapproachtoEnergyTransitioninthisregion,prioritisingtheneedsofthefourPeoplegroups,namelyworkers,communities,consumersandSMEs,tominimisethetransitionimpactonthem.Socialinvestorscanplayapivotalroleinthistransitionindrivinginnovation,scalingupsuccessfulmodels,andcreatinganenablingenvironmentforPeople-Centricenergysolutions.

Wehopethatthisreportwillinspiresocialinvestorsincludingphilanthropists,multilateraldevelopmentbanks,privateinvestors,andgovernmentsto

deepentheircommitmenttoaPeople-CentricEnergyTransitionintheAsiaPacificregion.Wewelcomebroadparticipationbystakeholdersinour

upcomingcollaborativeplatform.Together,wecancreateafuturewhereeveryonehasaccesstoclean,affordable,andreliableenergy,andensurethatthebenefitsoftheEnergyTransitionaresharedequitably,withnooneleftbehind.

NainaSubberwalBatra

ChiefExecutiveOfficer,AVPN

AravindanSrinivasan

ExecutiveDirector,

ClimateAction,AVPN

PatrickYeung

AssociateDirector,

ClimateAction,AVPN

Tableofcontents

TheimportanceofasuccessfulEnergyTransitioninAsiaPacific

TheNow:TheoftenoverlookedPeople-CentricdimensionsoftheEnergyTransitioninAsiaPacific

TheHow:ThekeychallengesandsolutionareastoaPeople-CentricEnergyTransitioninAsiaPacific

TheFuture:LaunchingaCollectiveActionPlatformtodrivethePeople-CentricagendainAsiaPacific

6

Executivesummary

TheimportanceofasuccessfulEnergyTransitioninAsiaPacific

Energytransitioniscrucialforadvancingclimatemitigationefforts.SignificantprogresshasbeenmadeintheGlobalNorthoverthe

pastfewyears,withtheGlobalSouthalsomakingstrides.TheAsiaPacificregion,asacontributorof50%oftheworld'semissions,playsapivotalroleinachievingasuccessfulglobalEnergyTransition,failingwhichtheregionmayfacedrasticconsequences,

including35%GDPlossinamere~25years.

TheNow:TheoftenoverlookedPeople-CentricdimensionsoftheEnergyTransitioninAsiaPacific

Currentdatasuggeststhatemphasishaspredominantlybeenoninfrastructure,failingtoadequatelyprioritise'People'inthetransitionprocesswithonly<1%offundingchannelledtowardPeople-Centriclevers.Thispublicationexaminesthe4keypeople

stakeholdersessentialforaJustTransition,specificallyfocusingonWorkers,Communities,Consumers,andSMEs.Itidentifiestherisksandopportunitiesassociatedwiththetransitionforeachstakeholdergroupandhighlightssuccessfulexamplesfromtheregion.Despitethesesuccesses,however,moreeffortisneededtoscalethemup.

TheHow:ThekeychallengesandsolutionareastoaPeople-CentricEnergyTransitioninAsiaPacific

Specifically,threekeychallengesalongtheprocessofsolutiondeploymentneedtobeaddressed.Thesechallengesincludegapsin

Awareness,Funding,andDeliveryquality.Addressingthesechallengeswillrequireamulti-actoreffortaseachactorispositionedtocontributedistinctlytowardstheunlockofeachoftheabovechallenges.

TheFuture:LaunchingaCollectiveActionPlatformtodrivethePeople-CentricagendainAsiaPacific

Finally,thepublicationexplorestheset-upofacollectiveactionplatformbyAVPNandBCGasawaytomobiliseaconcertedeffort

towardsaddressingthePeople-CentricEnergyTransitioninAsiaPacific.Thisdedicatedplatformaimstoleverageamulti-actorapproachtoaddresskeychallengesalongtheprocessofsolutionsdeployment-includingdrivinggreaterawarenessandclarityamongactors,

mobilisinggreaterfundingwithconcessionalandcatalyticcapital,andensuringqualitydeliverybyhavingstrongexecutingpartners.

Theimportanceofa

successfulEnergyTransitionin

AsiaPacific

Section1

Wedecideatwhatpointwewillhavemadeeveryoneon

theplanetsafeandresilient.

Ifwedonotsignaltheterminaldeclineofthefossilfueleraasweknowit,wewelcomeourownterminaldecline.[…]

Sciencetellsuswehavearoundsixyearsbeforewe

exhausttheplanet’sabilitytocopewithouremissions.

-SimonStiell,UNClimateChangeExecutiveSecretaryCOP28OpeningSpeech,November2023

8

9

Climatechangeisamongthemostpressingprioritiesof

ourtime…

Higheconomiccost

WarmingunderwaySignificantrisktohumanlife

410M

Peopleatriskfromrisingsealevels

projectedby21002

5B

Peopleexposedtoextreme

heatwavesby2050

2.7oC+

Warmingprojectedby2100with

Glasgow2030Pledges

3.6B

Peoplecurrentlylivinginareas

highlyvulnerable

toclimatic-drivenhazards1

-32%

LossinGDPby2100oncurrenttrajectory3

1.Floods,draughts,heatwaves.SpotsofhighhumanvulnerabilityfoundparticularlyinSouthAsia,SmallIslandDevelopingStates,West-,Central-andEastAfrica,CentralandSouth

America,andtheArctic2.Assumingzeropopulationgrowthandsea-levelriseofonemeter,perLiDARprojections3.Projectionof2.7Cwarmingby2100;doesnotincludebreakingofplanetaryboundaries

Source:IPCCAssessmentreport;ClimateActionTracker;WorldHealthOrganization;UNEPEmissionsGapReport;NationalBureauofEconomicResearch;ClimateActionTracker;WorldEconomicForum;RockyMountainInstitute2024;BCGanalysis

AsuccessfulEnergyTransitionwillbekeytomitigatetheeffectsof

climatechange,asitrepresentsthree-quartersofthechallenge

Shareof

emissions(%)

Global2020

GHGemissions(Btonnes)

~75%~25%

Σ=100%

1

1

2

3

6

36

49

EnergyAgricultureIPPUWasteLULUCFOthersTotal

Energysectoraccountsforthree-quartersof

totalcarbondioxideemissions

TheEnergyTransitionwill

beakeyunlockformitigatingfuture

climatechange

Note:IPPUisIndustrialProcessesandProductUse;LULUCFislanduse,landusechangeandforestry

Source:OurWorldinData;UnitedNationsFrameworkConventiononClimateChange(UNFCCC);InternationalEnergyAgency(IEA);BCGanalysis10

AsiaPacific(APAC)regionwillmakeorbreakthesuccessofglobal

JustEnergyTransitionefforts

APACisenduringsevereenvironmentalandeconomicconsequencesofclimatechange

51%

APACshareofannualglobalGHGemissions

APACisasignificantcontributortoglobalemissions-theregion's

actionswillsignificantlyinfluenceglobaloutcomes

-35%

GDPlossby2050inAPAC

APACeconomiesareatriskofmajoreconomiclossfromeffectsof

climatechangeandnaturalhazards,ifnoactionistaken

89%

ofAPACclassifiedas

"developing"

CostofcapitalforEnergyTransitionremainsaburdenformajorityof

developingareasinAPAC;mostgreeninvestmentstodayareinadvancedeconomies

SubstantialopportunitiesforJustEnergyTransitionremainuntapped

43%

Revenueopportunityavailableby2030

Asiaisprojectedtounlock$4.3Tofthe$10.1Tglobalrevenue

opportunityfromsustainability

activitiese.g.,renewablepowerandenergyefficiencyby2030

55%

PopulationinAPACthatareyouths1

Whilemanycountrieswillstruggle

withtheneedto"re-skill"their

existingworkforce,APAChasthe

opportunitytoproactivelyskillits

youngpopulation(over2Bbelowtheageof30)tobecomethefuture

workforceforgreenenergysolutions

1.Youthdefinedasthoseagedbelow30

11

Source:WorldEconomicForum:AcceleratingAsia’sAdvantage:AGuidetoCorporateClimateAction2023;WorldEconomicForum:CatalysingClimateActioninAsia2023;SAP;ADB:YouthEmploymentSupportinAsiaandthePacific;BCGanalysis

APACisdiverse,andhasvaryingstartingpointsontheTransition

journey

Colourlegends:口

(Deepdiveof口

archetypeson口

nextpage)口

Emerging,EnergyIntensiveEmerging,EnergyScarce

Developed,EnergyIntensiveDeveloped,EnergyEfficient

Australia

•Shareofemissions:2%

•Shareofpopulation:0.6%

•ShareofGDP:5%

China

•Shareofemissions:60%

•Shareofpopulation:34%

•ShareofGDP:51%

Bangladesh

•Shareofemissions:1%

•Shareofpopulation:4%

•ShareofGDP:1%

India

•Shareofemissions:15%

•Shareofpopulation:35%

•ShareofGDP:9%

Japan

•Shareofemissions:4%

•Shareofpopulation:3%

•ShareofGDP:14%

Singapore

•Shareofemissions:0.3%

•Shareofpopulation:0.1%

•ShareofGDP:1%

Philippines

•Shareofemissions:1%

•Shareofpopulation:3%

•ShareofGDP:1%

Indonesia

•Shareofemissions:5%

•Shareofpopulation:7%

•ShareofGDP:7%

Shareofemissions,population

andGDPindicateshareofmetricsagainsttotalAPACmetrics

•Shareofemissions

indicatesnecessityforaction

•Shareofpopulation

correlatestothe

amountofpeople

affectedbytheEnergyTransition

•ShareofGDPindicatescapabilitytofundownEnergyTransition

journey

12

Note:Shareofemissions,populationandGDPrelativetorestofAsiaPacific;figureshavebeenroundedtonearestwholenumber;colouredregionshavebeengroupedintoarchetypesavailableasdeepdiveonfollowingcontent

Source:WorldBank;OurWorldinData;InternationalMonetaryFund;EUEmissionsDatabaseforGlobalAtmosphericResearch(EDGAR);BCGanalysis

4archetypesobservedwithinAPAC

Population

GDP

Key

dimensions

Shareof

Emissions

Non-exhaustive

1

Emerging,

EnergyIntensive

2

3

4

Emerging,EnergyScarce

Developed,

EnergyIntensive

Developed,

EnergyEfficient

Features

HighEnergyIntensity,Low

ModerateEnergyIntensity,

HighEnergyIntensity,High

ModerateEnergyIntensity,

FinancialCapacity

LowFinancialCapacity

FinancialCapacity

HighFinancialCapacity

·Populous,highabsolute

Populous,low-moderate

Non-populous,low

Non-populous,low-

emissionsandintensity

absoluteemissionsandlow-moderateintensity

absoluteemissionsbuthighintensity

moderateabsoluteemissionsandlow-moderateintensity

ExampleswithinAPAC

China,India,Malaysia,Indonesia,Vietnam,

Thailand

SriLanka,Philippines,Bangladesh,Pakistan

Singapore

Australia,NewZealand,Japan,SouthKorea

61%

11%

<1%

27%

71%

<1%

9%

20%

34%

8%

2%

56%

Note:Descriptionsaregeneralisedtoprovideadirectionalviewofarchetyping,examplesmaynotfallperfectlywithinaspecificarchetype.Emissions,populationandshareofGDPdatadonotincludeChina,andreflectthepercentageofthesemetricsagainstthetotalofthesemetricsforAPregion(e.g.,Archetype1contributes61%ofemissionswithinallAPemissions)

Source:WorldEconomicForum;WorldBank;OurWorldinData;InternationalMonetaryFund;EUEmissionsDatabaseforGlobalAtmosphericResearch;BCGanalysis13

MacrochallengesacrossAPACobservedatvarying“degrees”

impliesneedfordifferentiatedapproach

Macrochallenges

relatedtoEnergy

Transition

Ambiguityintranslationofgovernmentpolicies

onfossilfuelsintoactionandpaceoftransition

resultingindelayed

changestowardcapitalallocationbyinvestors

Selectedquotesfrominterviews

Therewillbeanaturallaginfocuson

"workertransitions"foreconomiesthathavenotyetbeguntoactivelyphaseoutcoal–importanttohavecountry-specificfocusassomeregionswouldhave

investedequitythatislockedinto

theseassets1

-RegionalCommercialBank-

Archetypes

Emerging,

Energy

Intensive

Emerging,EnergyScarce

Developed,Energy

Intensive

Developed,Energy

Efficient

Limitedalignmentongreentaxonomyanddataavailabilityacross

theregion

Asignificantbarriertobuildinga

successfulecosystemofactorsand

actionsisthelimitedalignmentonwhatconstitutes"green"andwheredemandisin(industriesandcommunities)

-SEALeadingStockExchange-

Limitedcapability

tosupportEnergyTransitionagendawithintheregion

Whilesecuringcommittedfundingis

critical,theunderlyingpeopleelement

cannotbeoverlooked.Capabilitiesof

localactorsingovernmentsandindustryareessentialtoenablethetransition

-VietnamJET-Pimplementationteam-

Lowsocietalpressurefortransitiontowardgreenenergyandproducts,asaccessandaffordabilityremaintopofmind

Thereisadivergingfocusofpriorities

acrossAsiaPacific;ononehand,therearecountriesconcernedabout"greening"

theirsupply,whileontheother,manyarestrugglingwithbasicaccessand

affordabilityissues

-InternationalEPCPlayer-

1.Renewableprojectsonaveragefundedthrough~30%ofEquity,and~70%Debt,andone-fourththedeal-sizeofcoal-firedprojectsSource:Infralogic2024–assessmentof98projectswithfinancialclosebetween2019-2023;ClosedGroupConsultations;BCGanalysis

KeyTakeaway

Differentiated

approachgiven

varyingstarting

pointsonkey

enablersincluding

regulatory

environment,

availabilityof

alignedtaxonomy

anddata,local

capability,and

societalurgency

14

Theoftenoverlooked

People-Centric

dimensionsofthe

EnergyTransitioninAsiaPacific

Section2

…Itisadisgracethatthemostvulnerablearebeingleft

stranded,strugglingdesperatelytodealwithaclimatecrisistheydidnothingtocreate.

Wecannotacceptafuturewheretherichareprotectedinair-conditionedbubbles,whiletherestofhumanityis

lashedbylethalweatherinunlivablelands.

Wemustsafeguardpeopleandeconomies.

-AntónioGuterres,UNSecretary-GeneralSpecialAddresson"AMomentofTruth",June2024

16

Themissing"Just"inJustEnergyTransition–theoften-overlooked

People-Centricperspective

FutureEnergyTransitioneffortsmustaccountforPeople-Centricityasanindispensablecomponent

•Overall,muchgreaterinterestin"EnergyTransition"comparedto"Just/EquitableEnergyTransition"

•Inaddition,whileinterestin"EnergyTransition"has

grownovertime,interestin"Just/EquitableTransition"hasremainedrelativelyflat

•Movingforward,itisimportanttoembedelementsof"JustTransition"asacriticalcriteriaforasuccessful

EnergyTransition

“Thereisaneedforaclearlydefinedpropositionforwhat

aPeople-CentricTransitionmeans–embeddingthis

propositionintoallEnergyTransitioneffortsiscritical.”

-IndonesiaJET-Pexpert-

Worldwideinterestovertime(WebSearch)

100

75

50

25

0

201920202021202220232024

EnergyTransition

JustEnergyTransition

EquitableEnergyTransition

Note:Numbersrepresentsearchinterestrelativetothehighestpointonthechartforthegivenregionandtime.Avalueof100isthepeakpopularityfortheterm.Avalueof50meansthatthetermishalfaspopular.Ascoreof0meanstherewasnotenoughdataforthisterm;Insufficientdataavailabletoplot"People-CentricEnergyTransition"

Source:GoogleTrends(2024);BCGanalysis17

DespiterisinginterestinEnergyTransition,fundsareinequitably

distributedandfocusedonadvancedeconomies

Globalclimatefinancedoubledoverthepastyear,butonly18%deployedindevelopingeconomies

Fundsallocatedto

leastdeveloped

AnnualGlobal

ClimateFinance($B,USD)

3%

1,300

39

x2

countries(LDCs)

195

Fundsallocatedto

emergingmarkets

anddeveloping

15%

650

economies(EMDEs)

1,066

Advancedeconomies

e.g.,US,Europe,China

andJapanreceived90%

ofincreasedclimate

financefunds

19/2121/22

Mostfundingiscomingfromthepublic

sector;mobilisinginvestmentsfromothersourcesiskey

Sourceofpublicandprivateclimatefinance($B,USD)

640

Publicinvestment(Governments&DFIs)

235

PrivatecommercialFIs

Industryplayers

192

185

Privatefunds/investors

13

Familyoffices

Source:GlobalLandscapeofClimateFinance2023(ClimatePolicyInitiative);UNFCCC;BCGanalysis18

EnergyTransitionfocushasbeenskewedtowardsinfrastructure

development,withlimitedemphasisonPeople-Centriclevers

GlobalspendinginPeopleagendaremainsinsufficient

TotalGlobalGovernment

EnergySpending($B

USD,asof2023)

2,243

Nottoscale

2,223

20

<1%

AccordingtoIEA,

lessthan1%spentonPeople-CentredTransitionoutof

totalenergyspend

SimilarlyinAPAC,lowfocusonPeople-CentricleversincountrieswhereEnergyTransitionisunderwaytoday

FundingallocationfrominitialIPG1commitmentsforPeople-Centriclevers

Indonesia

Morethan90%ofJETPfundingisgearedtowardsinfrastructure–verylittleis

dedicatedtowardscapabilitybuilding,andthosethatdo[invest]haveamandate…

wedon'tjustneedfunders,weneed

3%

Outof$11.5BUSD

funderswhopushforPeople-Centricity

Vietnam

0.3%

Outof$7.8BUSD

IndonesiaJET-Pon-groundimplementationteam

A'Just'Transitionisadistantconcept…The

'People'sidemustbereadyandenablersshouldbedeployedbeforethemoney

VietnamJET-Pon-groundimplementationteam

1.InternationalPartnersGroup

Note:People-centredtransitionspendinginchartdonotincludeenergyaccessandaffordability,asthosemeasuresincludefossilfuelsubsidiese.g.,fuelpricecapandnaturalgassubsidies;overallglobalgovernmentspendingincludescommitmentsinforcefrompreviousyearssoactualannualfiguresaresmaller

Source:InternationalEnergyAgency(IEA)GovernmentEnergySpendingTracker2023;JustTransitionForuminAsia;6thAsiaPacificClimateChangeAdaptationForum;IndonesiaJET-P

ComprehensiveInvestmentandPolicyPlan2023;VietnamJET-PResourceMobilisationPlan;BCGanalysis19

Taxonomiesforclimatefinancedemonstratelimitedcoverageof

People-Centriccomponents

CoverageofPeople-Centriccomponents

Non-exhaustive

1

SelectedGlobalTaxonomies

Employment

Labour

Conditions

HealthandSafety

GenderEquality

DiversityandEquity

MarginalisedGroups

CommunityEngagement

CapacityBuilding

Australia’sSustainableFinanceTaxonomy

2

ASEANTaxonomyforSustainableFinance

3

JapanGreen/Sustainability-LinkedBondGuidelines

4

TaiwanSustainableTaxonomy

5

EUTaxonomyforSustainableActivities

6

Singapore-AsiaTaxonomyforSustainableFinance

7

MainlandChina’sGreenBondEndorsedProjectsCatalogue

8

HongKong’sGreenBondFramework

9TheKoreanGreenTaxonomy

20

Note:Informationaccurateattimeofpublishing

Source:Governmentannouncementsfortaxonomies;BCGAnalysis

People-Centricityplaces4key'People'stakeholdersattheheart

oftheEnergyTransition

Ensuringthatthecostsandbenefitsarisingfromtheimplementationoftheclimatetransitionaredistributedfairlyacrossstakeholders

MainObjectiveofJustEnergyTransition

2

3

1

Workers

Communities

Consumers

SMEs

4

StakeholderDefinition

Whyitis

importantto

considerthese

People

stakeholders

Fossilfuelindustryandvalue

chainworkers;newfuture

renewableandgreenenergy

workers

Asthekeydrivingforcebehind

nations'economies,ensuring

workersareengagedand

supported,e.g.,through

upskillingandreskilling,iscritical

tomaintainandimprovecountry

productivityandeconomy

Source:WorldEconomicForum(WEF);BCGanalysis

Fossilfueldependentormarginalisedcommunities

Communitiesreliantonfossil

fuels,vulnerable,orisolatedwill

bemostaffectedbythegreen

energyshiftduetolimited

transitionopportunities,yetare

bestsuitedtoidentifylocalpriorities

Endusersrequiringaccessibility,

affordability,andsecurityof

energy

Consumersmustbeprotected

againstnegativeimpactsof

EnergyTransition,suchas

minimisingaccessdisruption

andmaintainingnationwide

affordability,toencourage

adoption

Smallandmediumenterprises

thatneedtomaintain

commercialcompetitiveness

SMEscomprise97%ofAPAC

enterprisesand70%ofnational

employment,withfewerresources

thanlargeenterprisestomeet

transitiongoals;crucialtosupport

SMEpolicynavigation,technical

sourcing,andfinancing

21

FacilitatingaPeople-CentricTransitioninvolvesidentifyingkey

Peoplerisksandensuringtheyareaddressed

1

2

3

4

Workers

Communities

Consumers

SMEs

Energyaccessibilityandreliabilityprogrammes

Greenenergyadoptionmeasurese.g.,subsidiesandincentives

RisksfacedbyPeoplegroups

Opportunities(People-Centricsolutions)

Risingunemployment(fromfossilfuelsphase-out)

Nationalworkforceplanning

Skillsmismatchbetweenexistingandnewindustries

Redeployment,jobmatching,counselling

Geographicdisplacementofworkers

Reskilling,upskilling,greenskilling

Protectionandunemploymentsupport

Economicdisruptionandlossoflivelihood

Skillsandgreenskills-ledeconomicdiversification

Risinginequality,e.g.,socioeconomicandgenderdisparity

Infrastructure,greeninfrastructure-ledeconomicdiversification

Slowtransitionprogressduetounequitablecostburden

Publicconsultationandawarenessbuilding(incl.energyliteracy)

Communityconflictsfromlackofconsultation

Risinginequality,e.g.,socioeconomicandgenderdisparity

Slowtransitionprogressduetounequitablecostburden

LossofSMEcompetitivenessduetotransitioncosts

Technical,skillsupport(incl.technicalassistanceandincubators)

Slowtransitionprogressduetounequitablecostburden

DirectfinanceforSMEs

Lossofinternationalmarketaccess(e.g.,CBAM)

Greenenergyadoptionmeasurese.g.,subsidiesandincentives

Source:WorldEconomicForum2024;WorldBank:DiversificationandCooperationinaDecarbonisingWorld;UNEnvironmentProgramme;EconomicandSocialCommiss