Introduction
∙ A very good morning ladies and gentlemen.
∙ UOB is proud to be partnering The Star for this very topical event as Sustainability and the role Solar energy plays in combating climate change risks, are areas that UOB has been actively championing in the country and across the region.
Why is Sustainability important & how does RE play a role?
∙ Confronting climate change was critical even before COVID-19. Although the pandemic has reduced carbon emissions hence improving the environment in the short term, it has inevitably impacted global efforts to transition towards a low-carbon future as priorities have rightfully been channelled towards battling the outbreak.
∙ As we move into the pandemic recovery phase, the need to address global warming one of the most significant threats facing our planet today becomes more pressing.
∙ Rising global temperatures have brought about extreme weather conditions - such as the wildfires happening now in Greece and California, as well as the recent floods in Europe and China - all of which have affected lives and livelihoods.
∙ How human induced climate change is affecting us today is a key agenda being looked at by governments of the world. Reducing carbon emissions will no doubt be a key focus area in the upcoming United Nations Climate Change Conference in Glasgow this November. As a signatory to the Paris Agreement, Malaysia has committed to a reduction of greenhouse gases by 45% by 2030, compared to the 2005 levels.
∙ While it is critical to manage emerging climate risks, there are opportunities too.
∙ In Southeast Asia alone, there is an estimated USD1 trillion of annual economic opportunities by 2030 as our region moves to a greener economy.
∙ As an ASEAN bank, UOB is committed to playing our role. We initially aimed to build a sustainable finance portfolio of USD15 billion by 2023. Given the increasing demand by businesses for such opportunities, we have already hit USD13 billion as of June 2021.
∙ The market for clean renewable energy such as solar is only going to grow and Malaysian companies can benefit from that. A case in point, is the Large Scale Solar (LSS) 4 project with 30 bids awarded to local companies. The Energy Commission expects LSS4 to unlock RM4bn worth of investments and create 12,000 new jobs.
∙ As sustainability becomes increasingly important, beyond the traditional profit making goals, companies must integrate Environmental, Social and Governance (ESG) considerations into their business strategies in order to better compete in the longer term.
Why UOB believes in solar for Malaysia
∙ UOB believes the future is bright for solar power.
∙ Investing in clean and renewable energy such as solar is one of the many ways to significantly reduce the carbon footprint in your business.
∙ There is a strong push from the government to increase renewable energy in the country’s power capacity mix to 31% by 2025 and 40% by 2035. Solar will be the main contributor. International rating firm, Fitch, estimates Malaysia’s solar capacity could more than quadruple to surpass 4 gigawatts (GW) in 2030 up from 996 megawatts (MW) at the end of 2020.
∙ There is also a supportive framework from our regulator. In April this year, Bank Negara Malaysia published the Climate Change and Principle-based Taxonomy (CCPT) document, with the aim to help financial institutions assess and categorise economic activities according to the extent to which they meet climate objectives and promote the transition to a low-carbon economy.
∙ These development signal that sustainability is increasingly becoming a regulatory compliance matter. There are expectations
not just from the government but also investors and even consumers for financial institutions to support economic activities that are sustainable. In time to come, there will be little or no room for unsustainable companies.
∙ Solar power has become more affordable, accessible and a reliable source of renewable energy in Southeast Asia.
∙ The entry cost of procuring a solar system has seen significant reduction of almost 70 per cent from 2010 to 2020.
∙ Solar power also helps save electricity costs for businesses. o A typical solar PV panel installation on commercial or industrial properties can help businesses potentially save at least 25 per cent in electricity cost which translates to an average payback period of 3 to 5 years on your total investments.
o With solar PV panels installed, landed residential property households get to enjoy between 30% to 50% of monthly savings in electricity bills.
o Companies and individuals can save money while reducing their carbon footprint
How is UOB helping our customers get started on Solar adoption ∙ To help our customers address their cost concerns of installing and operating solar power systems in their homes, business premises and factories, UOB launched the U-Solar programme, which is Asia’s first integrated solar energy platform providing financing
solutions to solar developers, contractors, businesses and homeowners.
∙ It is a game changer for the solar energy ecosystem in Asia, with Malaysia being the first country to launch in Oct 2019, followed by Indonesia, Singapore and Thailand.
∙ For the end users, U-Solar is a one stop solution that provides businesses and homeowners with green financing to reduce the upfront investment for solar. Through this program we also make it easy for our customers by connecting them with our Solar partners
who are established industry players namely Ditrolic, ERS Energy, PlusSolar, Pekat Solar and Solarvest, who will undertake assessment, installation and maintenance.
∙ Since launch, the U-Solar programme in Malaysia has helped our customers to generate 32,700 megawatt hours in solar power. The programme has contributed to greenhouse gas reduction of 21.4 tonnes of CO2 in the country; which is equivalent to 354,000 tree seedlings grown for 10 years and 4,650 cars taken off the road for a year. U-Solar also won a Special Award under the category of Sustainable Energy Financing in Malaysia’s National Energy Awards 2020.
∙ We expect the demand for our U-Solar solutions to rise as we are seeing increasing interests in solar energy, especially coming from the commercial, industrial and residential sectors.
Closing
∙ I would like to thank The Star for providing UOB with the platform to share our thoughts and insights on today’s discussion. ∙ Mother Earth is our home. The notion that sustainability and profitability do not go hand in hand has been proven otherwise in recent times. It is possible for businesses to do good to the planet while creating value for themselves.
∙ Ladies and gentlemen, if you are interested to learn more about UOB’s U-Solar Programme and how solar power can further save costs for your business – we hope that you will benefit from our panel discussion this morning. Information on U-Solar can be found on our bank’s website.
∙ Thank you.