With rapid economic growth on one side and its net-zero commitments on the other, the ASEAN region must innovate in order to close the clean energy investment gap.
- Southeast Asia requires an annual investment of $180 billion by 2030 to meet its climate goals, highlighting a significant clean energy investment gap in the region.
- Greater transparency, enhanced roles for development finance institutions, and access to risk-hedging tools are essential for attracting the necessary finance and accelerating the clean energy transition in Southeast Asia.
- The region’s high economic growth, coupled with increasing energy demand met by fossil fuels, calls for a rapid scale-up of investment in clean energy to address sustainability targets and reduce reliance on oil and gas imports.
A new report highlights the need for a massive increase in clean energy investments in South-East Asia to meet climate targets. The region requires $180 billion annually by 2030, but there is currently a $150 billion shortfall.
The report suggests three solutions: greater transparency around the financial performance of renewables, an enhanced role for development finance institutions, and improved risk management. These measures would support the transition to clean energy and attract private investors. However, obstacles such as financing constraints and currency risks need to be addressed.