Powering Energy Transition

How an innovative green loan in Australia is helping a major real estate investor and fund manager meet ambitious sustainability targets.

In the energy transition, the commodities sector is where the pedal really hits the metal. Rising prices are just a taste of things to come.

From gigafactories to green ammonia, bankable new business models are key to accelerating the energy transition.

Societe Generale Global Markets experts share their views on the drivers and strategies shaping the green transition in Asia – and what it all means for investors.

The global push for sustainable supply chains is strengthening the link between digitalisation and decarbonisation.

Following a correction in valuations during 2023, investors are turning cautiously optimistic about Australian real estate again and refocusing on the sector’s structural growth, which is being underpinned by heavy investment into higher environmental standards.

A first-of-its-kind solar project in Japan could serve as a template for the use of virtual power purchase agreements* in project financing.

Every country is striving to reach net zero carbon emissions in the coming decades. But not all of them face India’s additional challenges of trying to decarbonise a rapidly growing economy, while also extending electricity coverage to a still largely rural population of 1.4 billion.

As stakeholders push companies to become more sustainable, technology, regulation and national support measures are all evolving rapidly to make this possible, allowing investors to deploy more capital with greater certainty.

A dazzling economic and exporting success story, Korea can maintain its momentum if its companies adopt greener practices.

State-owned New Zealand Green Investment Finance (NZGIF) has reached a major milestone in its support for the country’s energy transition with an innovative solar finance debt programme.

As Societe Generale celebrates 50 years in Japan, we look ahead at how the energy transition will shape the country’s economic prosperity over the coming decades.

Banks have a critical role to play in scaling up finance and investment to address sustainability challenges. In Asia Pacific, a holistic approach is needed to support corporates and investors in their transition.

Shell Energy Australia and Eku Energy, the latter being a company initially established by Macquarie’s Green Investment Group, are developing solutions for Australia’s green revolution

India’s ReNew is launching the country’s first project that combines generation from solar and wind farms with affordable energy storage in order to produce ‘always on’ power.

Australia’s emissions reduction target of 43 per cent from 2005 levels by 2030, and net zero emissions by 2050 will require contributions from different parties.

Energy transition comes at a cost, which market participants and policymakers have called “greenflation”. Greenflation is the inflation created when prices of commodities needed to green the economy rise due to increased demand or reduced supply.

Almost 90% of households in Australia own a vehicle, with over half owning more than one; and the average Australian drives nearly 13,000km per year (Footnote 1,2). Both numbers are higher than almost anywhere except North America.

There is no question that 2022 was a challenging year, with geopolitical turmoil, rising inflation and interest rates, slowing economic growth and real concern over energy security and supply chains.

Being amongst the pioneer on Sustainable Trade Finance, Societe Generale has developed several trade finance products to help support its clients in their transition. Shujue Cai, Head of Structured Trade and ESG Transaction Banking for Asia Pacific, shares her views on how sustainable trade finance solutions create positive impact to our clients, environment...

Although it is becoming increasingly well established in Asia, the potential of renewable energy to help combat climate change remains huge in a region that accounts for 60% of the world’s population and more than 50% of global carbon emissions.

The world is betting on hydrogen. This simplest of elements is increasingly being regarded as a big part of the solution to global climate change. However the world is only at the start of a potential ‘hydrogen economy’ and Asia boasts some of the most interesting potential.

Asset managers in Asia Pacific are working hard to refine the recipe for sustainable investing. Selecting the right ingredients is the first step to success.

The expansion of the sustainable bond market is opening up new funding opportunities for a wider range of companies and connecting investors with projects that support Asia’s transition to a low-carbon future.

A key player in the Asia Pacific renewable energy sector has accessed essential working capital through a pioneering green working capital loan. Societe Generale’s teams worked closely together to provide the advice and funding that made it all happen.

Hyundai Card combined its securitisation experience and ESG ambition in a pioneering offering of sustainability asset-backed securities (ABS), aligning with both social and environmental objectives.

Short-term green deposits are gaining traction as enterprises seek to make a lasting difference in the decarbonisation agenda

India’s energy transition will require the full support of the public and private sectors – and billions of dollars in investment. With the right frameworks now in place, India has momentum on its side.

The shift to cleaner technologies is an opportunity for countries and companies in Southeast Asia to work together to deliver a positive impact for the entire region.

"Gas Vitality" is owned by Emerald Blue Maritime S.A.S. (100% subsidiary of Japan-based company Mitsui OSK Lines Ltd (MOL)) and will be chartered on a long-term basis to an affiliate of France-headquartered energy company TotalEnergies in the port of Marseille-Fos.

An innovative financing package for Japan’s Azuma Kofuji solar facility could provide a template for renewables projects that meet the country’s unique requirements.

Mobilising green and sustainable finance in Asia Pacific is critical to meet the region’s energy transition and decarbonisation targets.

Green financing enables infrastructure developers to fund projects that contribute to countries’ and industries’ net-zero pathways. Societe Generale has helped to refinance Australia’s electric rail project in Queensland, which will further the state government’s economic development plans while also saving on greenhouse gas (GHG) emissions.

A first-of-its-kind green loan for the shipping industry will help New Zealand’s KiwiRail to commission and progressively upgrade two hybrid electric/diesel ferries that will carry the country towards its ambitious sustainability goals.

First non-recourse green loan in China’s distributed solar sector is a landmark financing for commercial and industrial customers

A clear focus on sustainability can help Asia access the trillions of dollars needed for the transition to a cleaner, greener future

Financing one of the world’s first purpose-built LNG Bunkering Vessels to support low-carbon shipping

The first large-scale floating solar installation in Indonesia will set a template for a growing number of similar projects planned in Southeast Asia and beyond. As well as helping Asia reduce its reliance on coal-fired power, this technology offers some compelling advantages over other clean energy solutions.

Societe Generale is working with the Asian Development Bank (ADB) to finance a wind power project in Vietnam that helps accelerate the energy transition in Southeast Asia.

In light of the acceleration of climate change, the financial services industry has a crucial role to play in addressing the climate crisis and financing the transition to a low-carbon economy.