| We are delighted to bring you the APAC Regional Newsletter - our monthly bulletin to keep you informed with Rystad Energy in the region. |
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|  | A note from our Partner and Head of Consulting, Asia Pacific, Jon Fredrik Müller Are you accounting for the price of CO2 in your strategic business planning? The carbon price has been a topic of debate for decades. Even prior to this millennium the early thinkers were debating different ways of imposing a price on carbon as a potential way of reducing emissions and global warming. In 2005 the EU Emission Trading Scheme (ETS) was implemented. Although the EU ETS price showed a declining trend for the first decade, it has now flipped upside down and grown from a level of ~ 5 EUR/tonne in 2017 to reach close to 100 EUR/tonne in February 2022. This is potentially a scene-setter for what is to come and will have large implications for businesses in all industries, all across the world. Personally, I believe an increasing price of carbon is probably the best way of achieving the emission reductions needed, but also to incentivize doing it in the most cost-efficient way. Ok, so the EU has a strong growth in the price of carbon, so what, this is not the case in most other countries in the world right? Well, albeit that is correct, the EU has been a trendsetter in this area. They started small and increased prices over time. Interestingly, we see more and more countries in APAC following the EU’s example, among others with China’s ETS introduced in 2021 and Indonesia introducing a tax on carbon in certain industries in 2022. With EU’s Carbon Border Adjustment Mechanism, they are effectively incentivizing other countries to impose a similar cost of carbon locally, at least on industries exporting to Europe. I mean why should the industry pay a tax in the EU when the tax can be imposed locally and provide revenue taxable income in the country of origin? In addition to the mandated ETS and carbon tax mechanisms, there is an ever-growing market for voluntary carbon credits. As consumers are demanding ever more from the corporations serving them, leading companies are reducing their climate impact regardless of regulation. At Rystad Energy we have been working with carbon markets for many years, and it has been interesting to see how our client dialogues have shifted from being curious about how a carbon tax might impact their cost of production to now seeing companies actively pushing business development to take a stake in the carbon abatement market, or companies using decarbonization to strategically positioning themselves as the preferred choice of the consumer. Whichever your focus is, it is time to make the price of carbon part of your overall strategic discussions. |
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| | | Upstream
Exit of IOCs from gas-producer Myanmar fuels talk of sanctions against MOGE
Vishruthi Acharya, Analyst, Upstream Research The exit of leading international exploration and production (E&P) players from Myanmar in the wake of the February 2021 military coup looks set to impact the gas-producing nation’s upstream sector as the remaining operators in the country size up the effect of sanctions on activities. TotalEnergies, Chevron, Shell and Woodside Petroleum have all announced they are pulling out of the country amid pressure on companies to review operations in the country as oil and gas revenues make up a significant share of the ruling junta’s earnings. The quartet’s exit is likely to impact production performance, investments on planned developments and exploration activities in Myanmar, while also fueling talks of potential sanctions against state player Myanma Oil & Gas Enterprise (MOGE).
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| Energy Service Will Japan and South Korea reach their 2030 offshore wind goals? Petra Manuel, Analyst, Energy Service Research Endowed with significant offshore wind power potential and robust economies, Japan and South Korea are emerging as two of the leading nations for growth in offshore wind power in Asia. As part of policy targets set in 2018, South Korea is aiming to install 12 gigawatts (GW) of offshore wind by 2030, while Japan in 2020 set a target of 10 GW over the same period. Since pledging to reach net zero emissions by 2050, offshore wind is also now seen as a top solution by both land-constrained nations as a way of growing renewable generation capacity locally and reducing dependence on imported fossil fuels. Rystad Energy estimates that a combined $80 billion will be spent developing more than 21 GW of targeted offshore wind capacity in Japan and South Korea this decade. |
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| Markets Indonesia's domestic production policy prioritizes local needs over export revenues Kaushal Ramesh, Senior Analyst, Gas Markets Research Indonesia has kicked off 2022 by doubling down on its inward focus on its key commodity sectors: coal, gas, nickel and palm oil. For the gas sector, this emphasis has been steadily increasing over the past decade, since the country ‘imported’ its first liquefied natural gas (LNG) cargo to the floating storage and regasification unit (FSRU) Nusantara Regas Satu in 2012, sourced from its own Bontang LNG plant. Since then, through a series of regulations aimed at either at regulating domestic prices or curtailing exports, the state has become increasingly involved in Indonesia’s gas trade. |
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| Renewables China’s county-wide rooftop solar PV program already getting results Yicong Zhu, Analyst, Renewable Energy Research Last year was a record 12 months for rooftop solar (RTS) in China with a total 23.8 GWAC of new capacity installed, comprising 53% of the year’s total new solar PV capacity. Launched on 20 June 2021, the RTS development program covers all counties in China and is designed to accelerate the adoption of RTS which was responsible for some 62% (14.8 GWAC) of total RTS installations last year. With over 600 counties and districts in China now listed as the location for county-wide RTS pilot schemes, we anticipate that China could have around 400 GWAC of distributed solar PV in operation in the coming 10 years. |
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| | Japan Monthly Insights マンスリーインサイト : ライスタッド・エナジー が誇るグローバルエキスパートの最新エネルギー市場分析をコンパクトなサマリーとして毎週お届けします。ガス＆LNG市場、原油市場、再エネ、シェールオイル、メタルマーケットなどの多岐に渡る分野を網羅します。 |
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| | News & Events Meet our experts and hear from them on the current topics that are shaping the energy landscape. Visit our website for our full calendar of News & Events. |
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| | External Events Renewable Energy Cup Charity Yacht Race 2022
March 18 | Sydney |
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| OTC Asia 2022
March 22 -25 | Kuala Lumpur |
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| | | | | | Rystad Talks Industry | Electric Vehicles: Navigating the road ahead February 1 | Virtual In our newly launched monthly webinar series, "Rystad Talks Industry," our Founding Partner & CEO, Jarand Rystad, shared his views on the booming EV industry, along with Marius Foss, Head of Global Energy Systems. The latter provided an update on the EV industry. Last but not least, our Battery Material specialist, Susan Zou, gave some insights on battery materials.. For more details, please contact marketing@rystadenergy.com. |
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| Australian Regional Webinar | 2022 Australian Energy Outlook - 5 things to look out for
February 15 | Virtual David Dixon, Senior Analyst, Australia Renewables Research, and Jimmy Zeng, Product Manager, Australasia Solutions, shared a look-ahead on the Australian Renewables and Gas markets for 2022.
For more details, please contact marketing@rystadenergy.com.
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| | The 6th Power Lithium Battery Cathode Material Summit Forum and Global Lithium Industry Chain Development Conference
February 24 - 26 | Changsha Susan Zou, Senior Analyst of Battery Materials, hosted sessions on 2022 lithium market analysis, global lithium resources trends analysis, trends of production of cathode materials for lithium batteries, etc.
For more details, please contact marketing@rystadenergy.com.
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