Closing the decarbonisation gap in APAC

The six Asia Pacific (APAC) G20 countries – China, Japan, South Korea, India, Indonesia and Australia – are together responsible for 88% of the carbon emissions of the entire APAC region and for 43% of total global emissions.

This paper leverages proprietary data sets and methodologies to analyse country-level carbon emissions data and projection models, marginal abatement cost curves and company-level green revenues data, providing unique insights into the demand and supply for decarbonisation technologies and solutions in the APAC region.

Our analysis shows that current climate policies of those countries imply a 2030 emissions level that is 61% higher than the maximum required to remain on a 1.5°C warming trajectory.

The mitigation solutions and technologies required to close this ‘decarbonisation gap’ by 2030 already exist and the products and services is growing quickly but more financing is needed.

• LSEG Sovereign Sustainability Solutions allow investors to understand country exposure to and management of climate issues across the themes of carbon footprint, energy transition and physical climate risks. The model includes over 22 proprietary climate metrics across 170 countries and uses an advanced statistical model to measure country alignment with a two-degree or Paris-aligned climate target.
• FTSE Russell’s Green Revenues 2.0 data model assesses companies providing green products and services and classifies associated revenues based on our proprietary Green Revenues Classification System (GRCS). The data model covers over 19,000 public companies across 48 markets, capturing nearly 98% of total global market capitalisation