From voluntary to mandatory: new energy efficiency rules take shape across APAC – Lexology

Report on New Energy Efficiency Regulations in the APAC Region

Introduction

As of 23 January 2026, new regulations across the Asia-Pacific (APAC) region have made energy efficiency mandatory for companies. These regulatory changes are aligned with the global commitment to the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), and SDG 13 (Climate Action).

Regulatory Overview

The tightened standards introduced in 2026 impose strict energy efficiency requirements on businesses operating within the APAC region. Non-compliance with these regulations will result in significant consequences, including:

1. Fines imposed on offending companies
2. Market bans restricting the sale or operation of non-compliant products or services
3. Public naming-and-shaming to increase transparency and accountability

Implications for Sustainable Development Goals (SDGs)

The enforcement of these energy efficiency regulations directly supports several SDGs:

• SDG 7: Affordable and Clean Energy – By mandating energy efficiency, the regulations promote the use of cleaner energy and reduce overall energy consumption.
• SDG 9: Industry, Innovation and Infrastructure – Encouraging companies to innovate and improve infrastructure to meet energy efficiency standards fosters sustainable industrialization.
• SDG 13: Climate Action – Reducing energy waste contributes to lowering greenhouse gas emissions, supporting global efforts to combat climate change.

Conclusion

The new APAC energy efficiency regulations represent a significant step towards sustainable industrial practices in the region. Companies are urged to comply promptly to avoid penalties and contribute to the achievement of the Sustainable Development Goals, ensuring a more sustainable and environmentally responsible future.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses new regulations in APAC making energy efficiency mandatory, which aligns with SDG 7’s focus on ensuring access to affordable, reliable, sustainable, and modern energy for all.
2. SDG 12: Responsible Consumption and Production
   • The emphasis on energy efficiency and compliance with tightened standards relates to promoting sustainable consumption and production patterns.
3. SDG 13: Climate Action
   • Improving energy efficiency contributes to reducing greenhouse gas emissions, supporting climate action goals.

2. Specific Targets Under Those SDGs

1. SDG 7 Targets
   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
2. SDG 12 Targets
   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle.
3. SDG 13 Targets
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.

3. Indicators Mentioned or Implied in the Article

1. Energy Efficiency Improvement Rate
   • Implied through the mandatory regulations and tightened standards aimed at improving energy efficiency in companies.
2. Compliance Rate with Energy Efficiency Regulations
   • Implied by the mention of fines, market bans, and public naming-and-shaming for non-compliance, indicating monitoring of compliance as an indicator.
3. Reduction in Energy Consumption or Emissions
   • While not explicitly stated, the focus on energy efficiency implies measuring reductions in energy use or associated emissions.

4. Table of SDGs, Targets, and Indicators

Source: lexology.com