APEC 2024: Energizing Clean Energy Transition in Lima, Peru

As the Asia-Pacific Economic Cooperation (APEC) prepares for its 2024 meeting on November 8 in Lima, Peru, energy security emerges as a vital topic. With rising geopolitical tensions and trade protectionism disrupting fossil energy trade, APEC member economies are prioritizing sustainable growth, focusing on clean energy transition and the diversification of energy supply sources. This ambitious agenda reflects the urgent need for collaborative solutions to enhance energy security across the Asia-Pacific region.

The APEC Meeting in Lima

With global energy dynamics shifting, the APEC 2024 Leaders Meeting is set to be a crucial platform for discussions on energy transition and resilience. Held in Lima, Peru, the meeting will provide an opportunity for leaders from member economies to engage in dialogue to tackle pressing energy challenges.

Key Themes and Priorities

Central to the agenda is the theme of “Sustainable Growth for Resilient Development.” This encompasses three main priorities:

• Promoting a clean energy transition
• Decarbonizing economic activities
• Enhancing food security

By addressing these priorities, APEC economies aim to strengthen their energy security amidst fluctuating energy markets driven by geopolitical conflict and trade policies.

Understanding Energy Security in APEC

Energy security is a cornerstone of economic stability and growth. In the context of APEC, energy trade flows vary significantly among member economies. Notably:

• Fossil Fuel Exporters: Russia, Australia, the United States, and Canada.
• Fossil Fuel Importers: China, Japan, and South Korea.

The ongoing conflict in Ukraine has exacerbated energy supply-demand dynamics, prompting countries heavily reliant on fossil fuel imports to seek alternatives for energy security. Without diversification, economies risk severe energy crises that could disrupt growth.

Collaboration Amidst Differences

The 2024 APEC Leaders Meeting is an opportunity for economies to transcend differences and collaborate. Measures such as diversifying energy supply sources and establishing long-term trade relations can bolster the resilience of energy supply chains. For instance, major energy-importing economies can reduce their dependency on external resources by forming stable connections within their region.

Accelerating Clean Energy Transition

The significance of clean energy is underscored by the United Nations Climate Action initiative, which states that transitioning to renewable energy not only enhances energy security but fosters greater self-sufficiency. The focus will be on:

• Facilitating trade in the wind and solar energy sectors.
• Encouraging cross-border investments for renewable projects.
• Creating green investment funds to finance sustainable initiatives.

Moreover, Peru’s chairmanship of APEC in 2024 showcases the country’s commitment to low-emission hydrogen solutions, leveraging its geographical advantages for green hydrogen development.

Incorporating Technology in Energy Solutions

To support a resilient energy structure, APEC economies must invest in new energy infrastructures such as smart grids. Integration of resources across borders can stabilize the regional energy supply and expedite the clean energy transition.

Expanding Opportunities for Collaboration

Given the varying resource endowments across APEC economies, collaboration is essential for maximizing clean energy potential. Economies with less capacity for solar and wind energy, such as Japan, are increasingly interested in hydrogen energy technologies. The emphasis will be on:

• Technological cooperation in renewable sources.
• Fostering trade agreements to boost market access.
• Developing initiatives that support sustainable and stable energy supplies.

This multi-faceted approach aligns with APEC’s vision and goals, positioning clean energy as the key driver of economic growth and environmental sustainability across the Asia-Pacific region.

A Call to Action for Member Economies

The 2024 APEC Leaders Meeting is a critical juncture for member economies to collaborate effectively. With rising energy insecurity posed by global instability, the need for impactful solutions has never been more urgent. By coming together, APEC economies can not only enhance their energy security but also lead the transition towards a sustainable energy future.

As the electric grid and renewable energy investment landscapes evolve, the momentum of the clean energy transition will dictate the trajectory of economic resilience within the Asia-Pacific region. The time to act is now.

The author is a chair professor at the School of Management and dean of the China Institute for Studies in Energy Policy, Xiamen University. The views expressed herein do not necessarily reflect those of China Daily.

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