SINGAPORE : Renewable energy and carbon trading businesses in the Asia Pacific have great growth potential, according to policy makers at a Clean Energy Conference held in Singapore on Wednesday.

Experts feel there are also investment opportunities, with Australia set to put its carbon trading scheme in place on 1 July 2010.

Experts said the cost of melting ice caps and other effects of climate change could rise to between 5 and 20 per cent of global gross domestic product (GDP).

But if businesses start investing now, the cost could be capped at 1 per cent. They said one way to mitigate the cost of global warming would be to cut carbon dioxide emissions.

For the over 350 policy makers and businesses at the conference, this could be a business opportunity - as the global CO2 market may grow to US$3 trillion a year by 2020. The market was already worth a whopping US$60 billion last year.

Asia can be a big player in carbon emissions trading, and take a leaf from the European Union.

Holger Standertskjoeld, head of the Delegation of the European Commission, Singapore, said: "The carbon trading scheme we have in EU has shown that you can differentiate between more well-off countries, richer countries and the poorer countries, so you can help one another.

"This is the possibility that we are actively exploring now to put it into place, and I think that could be an example also in ASEAN."

The World Council for Renewable Energy said clean energy solutions are developing rapidly. Expanding at over 40 per cent a year, renewable energy represents one of the fastest growing industrial sectors in the world.

The council added that a National Renewable Energy Foundation will be set up in January 2009 to promote the development and adoption of clean energy solutions. Renewable energy also presents economic potential.

"From a government-to-government perspective, there are obvious areas in research and development, particularly around clean coal technologies. And getting a dialogue at the policy level... (can spur) carbon capture storage technologies," said Dale Seymour, Deputy Secretary, Energy, Resources & Major Projects, Department of Primary Industries, Australia.

Clean coal technologies are methods designed to enhance the efficiency of coal as an energy source, while reducing its environmental impact.

There are also opportunities in the biofuel sector. During the conference, Malaysian officials said it could work with Singapore on converting palm oil base into biomass to produce biofuel.

A Kohilan Pillay, Malaysia's Deputy Minister, Ministry of Plantation Industries & Commodities, said: "Malaysia and Singapore can work hand in hand (to see) how we can utilise palm oil base (and turn it to) biomass.

"Today we can see almost 90 per cent of energy in Malaysia coming from palm oil, so 10 per cent is from other agriculture crop." - CNA /ls