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Welcome to the weekly AST Briefing.

We know that the most effective way to combat climate change is by reducing greenhouse gas emissions.

As the energy sector is responsible for over 70% of global carbon emissions, it is crucial to tackle this issue head-on.

In line with our April theme which focuses on energy, this week's briefing will explore the challenges and strategies involved in transitioning to clean energy for hotels across the Asia Pacific region.

The Race to Net Zero: Clean Energy Transition Challenges and Strategies for Hotels

Asia Pacific as a region is the world’s biggest carbon emission emitter due to its continued heavy dependence on coal for electricity and heating.

The average share of coal power in electricity generation in Asia Pacific rose from 40% in 1990 to over 50% by 2020 according to the Asian Development Bank.

A recent study by the International Tourism Partnership suggests that the global hospitality industry must decrease emissions by 66 percent by 2030 to limit global warming to no more than two degrees Celsius, which is the threshold as outlined in the Paris Climate Accords.

That said, transitioning to renewable energy is paramount for hotels in the hospitality sector as it brings forward its multifaceted benefits:

1. aligning with global efforts to combat climate change by significantly reducing carbon emissions

2. enhancing their brand image and attracting eco-conscious guests

3. saving cost by reducing dependence on fluctuating fossil fuel prices

But it all comes down to execution.

It helps to be aware of some of the common mistakes and challenges related to energy usage reduction and renewable energy transition for hotels. 

Common Mistakes and Challenges

1. Businesses often forget to be energy-efficient before adopting green energy

Rubén Cortés at Reef Solutions suggests that the increasing global demand for energy can only be met if it’s paired with improvements in resource efficiency.

Hotels and travel companies are recommended to analyze the opportunities to reduce energy consumption before investing in new systems or upgrades.

A good starting point begins with the building’s design and materiality. It should continue up to the monitoring  & evaluation (M&E) processes and standard operating procedures (SOPs) for how energy is used at a hotel. 

2. Misconceptions about the financial implications of renewable energy

According to Cortés, decision-makers are frequently hesitant to examine choices because of outdated knowledge about adverse market conditions.

Today, renewable energy is a lot more accessible and affordable than in previous years.  

3. A lack of suitable locations for installing renewable energy systems in urban environments

Many urban hotels in densely populated Asian cities face the challenge of balancing uninterrupted guest experiences with the optimal utilization of their real estate for installing solar panels.

The good thing is that quite a few Asia’s hotels have managed to come up with a solution by using their roofs. For example, Templation Angkor Resort in Siem Reap, Cambodia has 360 solar panels on its property, covering 20% of its power needs.

Best Strategies

1. Set achievable science-based emission reduction targets

The Science Based Targets Initiative (SBTi) has put together a comprehensive online assessment for companies of all sizes to determine their targets. To begin, be sure to have some knowledge of your scope 1, 2, and 3 emissions. 

Check AST’s Ultimate A-Z Glossary for definitions for Scope 1, 2, and 3.

2. Conduct an energy audit 

Conducting an energy audit is crucial for understanding your emissions, as it helps identify areas of high energy consumption and suitable approaches for implementing renewable energy solutions.

» CASE STUDY: How A Small Change at Batu Batu’s Sewage System Saves Energy Consumption and Cost. Read here.

3. Prioritize Seamless Guest Experience & Promote Team’s Behavioral Change 

At the end of the day, hotels and resorts exist to offer a great guest experience. Saving energy or using green energy should not interrupt or deteriorate your guest experience. 

In fact, as hotels and resorts look to curate elegant spaces for guests, opportunities arise in guest bedrooms by using smart building controls to elevate the experience.

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