ASEAN countries face the challenge of meeting their future energy demand in a manner that is both affordable and secure. Additionally, they are striving to reduce carbon emissions and achieve their net zero targets.
In a fast-evolving global landscape, ASEAN countries must seize the moment to accelerate the energy transition. This is critical to build a greener path for growth, while delivering on energy security and affordability, and meeting climate targets.
- The ASEAN region needs to accelerate its energy transition to meet growing demand, achieve energy security, and reduce carbon emissions.
- Improving energy intensity and promoting electrification, particularly in the transportation sector, can help achieve greater efficiency and emissions reduction in ASEAN countries.
- Policy and collaboration among stakeholders are crucial for the successful implementation of the energy transition, including the development of cross-border energy infrastructure and the involvement of energy consumers.
The 10 ASEAN countries are home to about 650 million people and are some of the world’s fastest-growing economies. To power this growth, the region’s energy demand has over the last two decades increased on average by around 3% a year – to become the fourth largest in the world after China, the United States and India. In Vietnam alone, electricity demand is rising by around 8% a year – and that requires a rapid expansion of capacity.
The global energy transition, which was once progressing steadily, has now become a challenging and unpredictable landscape for countries and companies to navigate. The COVID-19 pandemic in 2020 led to a significant reduction in global energy demand, carbon emissions, and investments on an unprecedented scale. However, the subsequent year saw a strong rebound in energy demand and emissions. This has created an uncertain environment for all stakeholders involved in the energy sector.