Governments need to significantly improve renewable electricity procurement options and reduce regulatory hurdles that are stopping businesses from transitioning to net-zero. This is according to the latest findings from RE100’s annual disclosure report 2021.
Limited, or no availability of renewable electricity (reported by 40 members in 66 markets), lack of procurement opportunities (reported by 37 members in 111 markets), and prohibitive cost (reported by 27 members in 41 markets) were the top three challenges members faced procuring renewable electricity. For the world to progress to net-zero and minimize the effects of climate change, it is essential that businesses and governments work in tandem with one another to ensure that barriers cited in this report are reduced.
Again, Asia most frequently presents barriers to sourcing experienced by members. 27 members cited barriers in the Republic of Korea, with 24 citing them in Japan and 22 citing them in China. In the 2020 report, high cost of renewables, poor corporate procurement options and limited availability of renewables were all prevalent barriers. Unsurprisingly, members operating in traditionally fossil fuel-reliant countries such as Australia, Russia and Saudi Arabia cited barriers like lack of procurement options and cost.
Despite these challenges, the latest report finds that RE100’s membership has seen its biggest yearly growth in Asia-Pacific, where 36 new members are headquartered – equalling 62% of its new membership. RE100 now has 102 members in Asia-Pacific, up from less than 10 in 2016, demonstrating the growing appetite from businesses in the region to adopt 100% renewable electricity.
RE100’s membership now consumes more electricity than the UK, the 12th highest emitting country, and the 349-strong initiative continues to grow. With businesses accounting for half of global greenhouse gas emissions from power generation, it is vital challenges in reaching 100% renewable electricity are overcome, so willing companies can progress to net-zero.
RE100 members are continuing to increase their use of impactful procurement methods such as Power Purchase Agreements (PPAs). Members reported sourcing 42 TWh of renewable electricity using Power Purchase Agreements, or 28% of their total sourcing of renewable electricity. This is an increase from 26% in 2020.