Asia-Pacific (APAC) is at the forefront of the global green revolution, but the region still faces several challenges in accelerating its clean energy journey. Chief among them is the need for robust support in transitioning from fossil fuels to greener power. This transition requires the widespread deployment of low-carbon technologies to enable high-emitting industries to decarbonise effectively and transition toward a cleaner future.
The investment challenge
Addressing these challenges demands not only technological innovation but also substantial investments in new infrastructure and financial mechanisms. The Asian Development Bank (ADB) estimates that Asia will need to invest approximately US$1.7 trillion annually in infrastructure through 2030 to sustain economic growth, combat poverty, and address escalating climate risks.
When it comes to climate financing specifically, the challenge is even more acute, with the region facing a shortfall of at least US$800 billion annually, according to the International Monetary Fund. This underscores the urgent need for innovative financial tools, such as “transition finance,” to bridge the capital gap for both large-scale renewables projects and early-stage climate tech ventures.
APAC’s pivotal moment
Asia is leading the charge in creating investor opportunities, nurturing groundbreaking innovations, and establishing itself as a global hub for the incubation of low-carbon technologies.
The region stands at a pivotal moment, with a unique opportunity to act decisively and leverage the green transition not only as a pathway to decarbonisation but also as a catalyst for long-term competitive advantage and economic growth. To fully unlock this potential, there is an urgent need for actionable decarbonisation strategies and transformative accelerators that can drive immediate progress and scale sustainable solutions across the region.
According to a 2024 study by Boston Consulting Group, by 2030, renewables could account for 30–50 per cent of the power generation mix in many APAC markets, underscoring the region’s vast potential. To move the needle further, private-sector organisations can play multiple roles. Collaboration between corporations and startups offers a powerful opportunity to leverage their respective strengths, with two key objectives: supporting climate tech startups in Asia and fostering a robust Asian investment community.
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Companies like Towngas are paving the way by creating ecosystems that bring together climate tech startups and innovative ideas. Besides directly funding or operating renewable energy projects, they can serve as platforms for incubating and amplifying early-stage innovations.
Global competitions like the TERA-Award Smart Energy Innovation Competition offer a case in point. Such competitions gather the brightest ideas in hydrogen, carbon neutrality, energy storage, and more—then connect emerging innovators to venture capital and the broader industry ecosystem.
Bridging the gap between innovation and commercialisation
By doing so, they bridge the critical gap between concept and commercialisation, allowing impactful clean-tech solutions to scale quickly in APAC’s fast-moving markets. This synergy not only drives the growth of climate tech in Asia but also strengthens the region’s position as a global leader in sustainable innovation.
APAC industries are accelerating the adoption of sustainable fuels like hydrogen, green methanol, and sustainable aviation fuel (SAF) to advance decarbonisation across marine, land, air, and industrial sectors. Past TERA-Award winners have showcased novel approaches to hydrogen production, energy storage solutions, and other clean-energy breakthroughs.
The path to a sustainable future
From advanced methods of manufacturing green hydrogen to high-efficiency systems for capturing and reusing carbon, these teams demonstrate how emerging technologies can help public and private sectors alike meet ambitious sustainability targets.
As more companies step up with funding, partnerships, and platforms for innovation, APAC’s green tech leadership is set to flourish—positioning the region as a key driver of the sustainable, low-carbon future that the world urgently needs.
Also read: Balancing economic growth and climate action: Decarbonising SEA’s built environment
Achieving emission targets requires unified, collective action from all stakeholders. Collaboration between governments and private enterprises is paramount to overcoming regulatory hurdles and ensuring a well-orchestrated rollout of green initiatives that can truly transform marine, land, air, and industrial sectors.
As the region accelerates the development of its green technology ecosystem, it is rapidly closing the gap with global leaders in clean energy and solidifying its position as a key player on the international stage.
At Towngas, we reflect our commitment to combating climate change through innovation, actively contributing to green tech development and fostering strategic energy partnerships. These efforts highlight APAC’s critical role in driving a sustainable, low-carbon future and shaping global climate action.
The fourth edition of TERA-Award is now open for application. Learn more from here.
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