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Is sustainable technology a great demand in Asia?

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As per the various studies, only in some technologically advanced Asian countries like Japan, the Republic of Korea, Taipei, and China, the availability of locally-made required technology are present due to the comparatively high cost.

Whereas in other Asian countries like India and Iran with an extensive industrial capability and a certain degree of achievement in green renewable technologies at home mostly, they have to rely on importing such technologies.

As per a recent study report by KPMG, even though India is a thriving domestic wind and solar manufacturing sector, it still needs to import $42 billion of solar equipment by 2030 which is almost 100 GW of installed capacity. The reliance on importing technologies led to the increase of cost for realizing green energy projects and an import burden is added on their economies so that green energy projects are not affordable in some Asian countries and the restrictions are placed on large-scale projects.

Even though some technologically advanced countries in Asia are in support of clean green renewable energy sources but the cost for a large-scale switch is comparatively cheaper in fossil-fuelled alternatives. The second option provides a cost-effective solution and is economically sensible due to the low yield of clean renewable technology.

In recent times, Asian countries like China are proving a good example in the use of clean renewable energies like solar and wind. GHG emissions are in proper efforts to curb it out as China has been able to turn itself into the world’s largest producer for wind turbines and solar panels.

In order to meet the growing domestic demand and becoming a major technology giver, the exported has significantly lowered the cost of production for green energy technologies at home and competitive abroad.

Thereby in December 2016, the PRC’s National Development and Reform Commission announced “tariffs paid to solar farms by as much as 19% in 2017 from this year’s levels, and by as much as 15% for windmills in 2018 from current prices” is able to reflect in declining the construction costs of wind and solar projects, Shen (2016).

According to Shearer et al. 2017, the 272,940 MW capacity of the coal-fired generators was a scale evident in the PRC. As per a Statista 2017b report, In China, the number of electric vehicles jumped from 90.86 million in 2010 to 194 million in 2016.

Source:- Handbook of Green Finance.

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