Sustainable Development Goals (SDGs) have become a global priority, with many many countries fighting to achieve them. Southeast Asia (SEA) plays a vital role, thanks to its strategic geographical location, economic growth and integration, also abundant natural resources.
In recent years, green and renewable energy has become a major focus in Southeast Asia. It significantly addresses three vital issues of SDGs–Clean and Affordable Energy; Industry, Innovation, and Infrastructure; Climate Action–are covered if these energies can be implemented optimally.
in line with this focus, SEA has started collaborating under the Green Economy framework, which goes beyond the original approach by focusing not only on profit but also on sustainability and long-term environmental health. The Green Economy emphasizes reducing carbon emissions and pollution, improving energy and resource efficiency, and protecting biodiversity and ecosystem services.
Therefore, the transition to green and renewable energy is a key step in implementing the Green Economy in the region. Since 2022, SEA has focused on lowering greenhouse gas (GHG) emissions; thus, it has become SEA's main goal to reduce GHG emissions by 33% by 2030. To achieve this target, countries in the region have started focusing on transitioning to renewable energy.
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What are the roles of the state and private companies?
Every country in SEA has also made significant contributions to this transition effort. For instance, the Lao People's Democratic Republic (Lao PDR) aims to be a major supplier of renewable energy for the region. There is also, The ASEAN Power Grid (APG), a project initiated to develop a cross-border electricity system between neighboring countries, including Thailand, Malaysia, Laos, Cambodia, Vietnam, and Myanmar.
Singapore's Keppel Corp, Thai Impact Electrons Siam Co Ltd (IES), and Envision Group are three private companies that have signed a Memorandum of Understanding (MoU) to enhance renewable energy solutions across ASEAN. According to Chekkera's article on The B.I.P.R site, the project and its expansion could reduce over 90 million tons of carbon dioxide. Additionally, IES is developing more than 1,900 MW of wind and solar assets in various countries, including Thailand, Japan, Laos, and Vietnam.
Another example is the high demand for battery-making and electric vehicle (EV) parts increases the world's need for nickel. Indonesia, as one of the largest nickel producers in the world, has committed to banning nickel exports to stimulate downstream investment, such as battery manufacturing, to create a holistic EV production supply chain.
Meanwhile, Thailand provides incentives for both consumption and production, such as exceptions for import duty for significant electrical parts and subsidies of up to a maximum of 100,000 baht (US$2,760) per car. This effort will benefit the Philippines, Vietnam, and Myanmar due to the existing industrial base and corresponding supply chains in this sector, much of which has been shaped by Japanese and South Korean automotive firms.
If these efforts are implemented optimally, they will not only provide employment opportunities or encourage people to choose more environmentally friendly options but also attract investors for green economic efforts in SEA. In other words, it will increase economic growth and development in the region.
How is the effort so far?
However, the transition to a green economy is a gradual process, requiring significant time and effort. Although several collaborative projects have been initiated and are in development, challenges remain. This includes overcoming the reliance on fossil fuels as affordable energy, Which still becoming major homework for SEA. On the other hand, SEA has set an example for other countries, showing that collaboration could be the best option to achieve the SDGs.
