A recent report by Zurich Insurance highlights that 75% of Southeast Asia’s renewable energy capacity is at risk of severe climate exposure by 2030, threatening $165b in assets. The report suggests that investing $13b in climate resilience measures could mitigate up to $82b in potential losses, offering a 6.5x return on investment.
The analysis underscores the urgency for ASEAN countries to integrate resilience into their clean energy infrastructure. With the region aiming for renewable energy to constitute 45% of installed power capacity by 2030, up from 33% today, the financial stakes are high. Mark Fletcher, Head of Zurich Resilience Solutions, Asia Pacific, stated, “Southeast Asia has a clear opportunity to protect the value of its clean energy transition before losses materialise.”
The report identifies wind, flooding, hail, and tornadoes as critical hazards, with solar energy sites facing the most immediate risk. By 2030, 80% of solar sites are expected to fall into high-risk categories. Amar Rahman, Global Head Sustainability & Climate Solutions at Zurich, emphasised the importance of forward-looking climate data to guide resilience investments.
Zurich’s recommendations include mandatory climate risk screening, prioritising high-risk assets for stress-testing, and embedding hazard-specific resilience into procurement. These measures aim to enhance the insurability and bankability of renewable projects, ensuring long-term performance and reliability.
As ASEAN accelerates its clean energy initiatives, embedding resilience from the outset is crucial to safeguarding asset values and maintaining insurability, ensuring the region’s energy transition is both reliable and sustainable.
