*2.1. Global Commitment to Emissions Reduction (COP 21)*

The Paris Agreement, negotiated at the Paris Climate Conference (COP 21), is the first universal legally binding global climate change agreement, adopted by the majority of leaders on 22 April 2016. It aims to limit the average temperature rise to well below 2 ◦C above pre-industrial levels (baseline: 1850–1900) and to pursue efforts to limit the temperature increase to 1.5 ◦C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change (EU, 2020) [14].

Bridging the gap from current policies and actions to climate neutrality by the end of this century is very challenging. The world will need to reduce emissions by 7.6% per year from 2020 to 2030 to limit global warming to 1.5 ◦C. If we do nothing, temperatures are expected to rise 3.2 ◦C above pre-industrial levels by the end of century—posing a serious threat to our living environment (UNEP, 2019) [15]. If emissions cuts are delayed, it will become very difficult to meet the limit of a global temperature rise of well below 1.5 ◦C by 2100. UNEP (2019) [15], stated that delaying emissions cuts until 2025 would steepen the need to cut emissions to 15.5% per year, which would be extremely difficult to achieve, especially for the developing world. As parties to the Paris Agreement, countries have submitted comprehensive national climate action plans known as Nationally Determined Contributions (NDCs). Some countries have not yet finalized their NDCs, but have carried out preparatory work known as Intended Nationally Determined Contributions (INDCs).

About 78% of all global emissions come from G20 nations, requiring their strong commitment to long-term zero emissions targets by 2100. Amongst the G20 nations, China, the US, the European Union (EU) 28, (The EU 28 refers to the 28 countries which were members of the EU until 31 January 2020 when the United Kingdom left the group (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, and United Kingdom).) and India contributed more than 55% of the total emissions over the last decade (UNEP, 2019) [15]. Thus, the speed of emissions reduction is very concerning, and full decarbonization of the energy sector may go beyond renewables and energy efficiency. The carbon sinks will rely on the clean use of fossil fuels with carbon capture, utilization, and storage (CCUS). Developing countries may face difficulties in achieving emissions reduction targets without international support, such as technologies for the clean use of fossil fuels and the other climate abatement initiatives. However, their emissions contribution remains small compared with that of the G20 nations. Developing nations can contribute more in terms of the conservation of natural resources such as forestry and the management of improved agricultural practices.

The fifth session of the UN Environment Assembly (UNEA-5), provides leadership, catalyzes, intergovernmental actions on the environment, and contributes to the implementation of the UN 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs) (UNEP, 2021) [16]. UNEA-5 will also provide an opportunity for Member States and Stakeholders to take ambitious steps towards building back better and

greener by ensuring that investments in economic recovery after the COVID-19 pandemic contribute to sustainable development.

Amongst other policy measures to reduce the GHE, energy efficiency is very crucial as it is also known as the hidden fuel—fuel that can be translated to be an energy resource to a nation as it will become energy available for economic activities and supply to the greater population. Energy efficiency can offer relatively cheaper and quicker solutions to help ASEAN embark on the road to economic recovery through the provision of available and sustainable energy for economic activities and reduce emissions ASHRAE (2020) [17]. Energy efficiency can be applied to all sectors including power generation, commercial and residential building, and transportation. In this regard, guidance offered by the ISO standards (ISO 50001 for energy management, ISO for 14065 for greenhouse gas validation, and verification or ISO 14001 for environmental management and others) will help countries in the process of implementing changes within the ASEAN energy system transition.

## *2.2. ASEAN and EU Energy Policy Directions*

The ASEAN Plan of Action for Energy Cooperation (APAEC) is the high-level energy cooperation framework within ASEAN where leaders in ASEAN adopted the first APAEC at the 17th ASEAN Ministers on Energy Meeting (AMEM) held on 3 July 1999 in Bangkok, Thailand, in which ASEAN's leaders had agreed to implement a framework for cooperation in energy to enable ASEAN countries to obtain security of supply, whereby ASEAN Member States (AMS) work towards lessening dependence on imported oil and towards accelerating the development of indigenous energy sources and energy conservation (ACE, 2015) [18]. APAEC is implemented in two phases: Phase I covers the period 2016–2020 and consists of short to medium-term measures to enhance energy security cooperation and to take further steps towards connectivity and integration. Phase II covers the period 2021–2025 which is developed based on the progress of Phase I implementation.

Phase 2 of the ASEAN Plan of Action for Energy Cooperation (APAEC), which is under preparation for endorsement by the ASEAN Ministers on Energy Meeting in 2020, will set key energy policy targets and will have energy policy implications for energy infrastructure related investment in the region (ASEAN Centre for Energy, 2020) [19]. Key targets include the revision of the new energy efficiency and conservation target from a 30% reduction in energy intensity by 2025 (based on 2005 levels) to more ambitious levels—a new target of 35–40% reduction is likely—and will involve the expansion of energy efficiency and conservation measures to transport and industries. It will also establish a new sub-target for the share of renewables in installed power capacity, which will complement the existing target of a 23% share of renewables in the total primary energy supply (TPES) by 2025. APAEC Phase 2 will also include policy measures to pursue smart grids and renewable energy grid integration; and measures to address emerging and alternative technologies such as hydrogen, energy storage, bioenergy, nuclear energy, and CCUS. APAEC Phase 2 will maintain the focus on energy connectivity and market integration, but will add a sub-theme on the energy transition and energy resilience on how the region will need to have a strategy to deal with fossil fuels and new technologies.

The ASEAN region has wide economic development gaps in terms of gross domestic product (GDP), population growth, energy use, and technologies. However, each country is committed to addressing the common climate change issue. Countries share their commitments through various policies such as energy intensity targets or through targets for the share of renewables in the energy mix. Nevertheless, emerging countries face energy access and affordability issues, while promoting renewables and other clean energy technologies remains expensive. Although solar and wind module costs have dropped drastically, the system cost remains expensive when applied in developing countries. Making these clean and green technologies available to developing countries in ASEAN will require policy attention, including regulations and financing mechanisms, with support from developed countries.

The EU aims to be climate neutral by 2050 (EU, 2020) [14]. Amongst other targets, the 2030 climate and energy framework includes EU-wide targets and policy objectives for 2021–2030. The key targets for 2030 include (i) at least 40.0% cuts in GHG emissions from 1990 levels, (ii) at least a 32.0% share for renewable energy, and (iii) at least a 32.5% improvement in energy efficiency. For GHG emissions, a cut of at least 40.0% below 1990 levels is targeted by 2030. This will enable the EU to move towards a climate-neutral economy and implement its commitments under the Paris Agreement. For renewables, the binding renewable energy target for the EU for 2030 is at least 32.0% of final energy consumption, including a review clause by 2023 for an upward revision of the target. For energy efficiency, a headline target of at least 32.5% is to be achieved collectively by the EU in 2030, with an upward revision clause by 2023. To help achieve these targets, a transparent and dynamic governance process will help deliver on the 2030 climate and energy targets in an efficient and coherent manner. The EU has adopted integrated monitoring and reporting rules to ensure progress towards its 2030 climate and energy targets and its international commitments under the Paris Agreement.
