International cooperation is critical to Southeast Asia’s clean energy transition

Southeast Asia's energy sector is at a critical juncture, facing a significant shift towards clean energy amid rising energy demand and a need to cut fossil fuel dependency. The region, which currently contributes about 5% of global emissions, must invest approximately US$27 billion annually to meet its 2025 renewable energy target. With the world’s youngest coal fleet, ASEAN faces a daunting US$277 billion challenge to retire these plants early.

The region's energy demand is growing at 4% annually, making a clean energy transition vital. ASEAN aims for 23% renewable energy by 2025, requiring $27 billion in yearly investment.

This means that international support is essential, extending beyond finances to include policy and technical expertise. Opportunities for global investors are substantial. The region's ongoing energy transition opens avenues for investment in renewable projects, such as cross-border electricity trade and wind power initiatives. Existing international collaborations, including the Southeast Asia Energy Transition Partnership and G7-led Just Energy Transition Partnerships, highlight the potential for expanded financial and technical support. Moreover, engaging with Southeast Asia offers strategic benefits, reinforcing geopolitical positions and tapping into growing markets for green technologies.

Southeast Asia's shift to clean energy is integral to a worldwide effort that offers shared advantages through increased global collaboration. This means that early movers are poised to reap the greatest rewards.

Article by Thang Nam Do for Hinrich Foundation. Read more here or in the PDF below.

International cooperation vital for Southeast Asia’s clean energy transition _ Article _ H.

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