Comprising 10 member states, ASEAN is now the world's fourth-largest energy consumer, according to the World Economic Forum. At least $200 billion needs to be invested annually to generate sufficient energy to fuel the region's rapid development.
At the same time, ASEAN member states geographical features and resource-based economy render them among the most vulnerable parts of the world to climate change. Climate change has adverse impacts on both the economy and well-being of the citizens residing in the region, some of which include severe droughts, reduction in agricultural production due to floods and dry spells, and the emergence of diseases like Malaria and Dengue Fever.
Also read: Indonesia’s Nickel Industry Is Going Green: The National Roadmap to Decarbonization
To remain economically competitive and improve the quality of life in the ASEAN countries, collaborative efforts through financing, research, and joint development towards energy transition are essential to mitigate the effects of climate change on the region.
Recent highlights of ASEAN's strategies to achieve its climate goals include:
Increased Share of Renewables in Total Primary Energy Supply under the ASEAN Plan of Action for Energy Cooperation (APAEC)
Launched in 1999, APAEC is defined as 'a series of guiding policy documents that aim to promote multilateral energy cooperation and integration'. In other words, it is considered the energy sector blueprint for the region. The latest phase of the cooperation particularly addresses energy security hand-in-hand with the adoption of clean sources of energy, encouraging the acceleration of energy transition.
In 2022, the renewable energy share in the total primary energy supply increased to 16.22%, nearly doubled from its 2021 share at 8.4%. Wind and solar have mainly contributed to this growth. In the long run, renewable energy is targeted to make up a maximum of 63.2% of the energy supply in the region.
Also read: Indonesia and Singapore signed a bilateral agreement in June 2025 for clean energy collaboration
ASEAN Power Grid: ensuring access to sustainable energy beyond borders
No less important than power generation, connectivity is a must in ensuring all members of ASEAN enjoy access to renewable energy. In the 46th ASEAN Summit, Malaysia, currently the chair of the association, called to strengthen the ASEAN Power Grid (APG).
To build such infrastructure, an investment worth US$200 million is needed until 2050. This is tackled through the Energy Transition Partnership, which funds the development of APG through the ASEAN Centre for Energy.
The ambition does not end here: towards the grand ambition of a clean economy
The latest 2025 ASEAN's Energy Transition Meeting also discussed the possibility for a Clean Economy Agreement that aims to pull together initiatives related to renewables into a single deal to bypass trade barriers that could hinder the development of clean energy technology, thus speeding progress towards power system transformation and trade growth.
In addition, ASEAN has also delved into researching how citizens can become a part of the region's transformation towards sustainable economic growth. 2018 saw the adoption of the ASEAN Declaration on Promoting Green Jobs for Equity and Inclusive Growth. Granted, the creation of fossil fuel-related jobs in Southeast Asia declined following the COVID-19 pandemic.
Under the ongoing global shift towards renewables, the 8th ASEAN Energy Outlook predicted that demand for jobs in the renewables sector will continue to increase, primarily in operation and maintenance.
ASEAN has acknowledged that setting up a foundation for sustainable economic growth is crucial for its member states to maintain resilience. Moving forward, strategic cooperation will continue to play an important role in achieving the ever-growing ambition for energy transition.
Sources:
ASEAN. (n.d.). Promoting green jobs for equity and inclusive growth. ASEAN Socio-Cultural Community (ASCC) Knowledge Hub. Retrieved July 12, 2025, from https://knowascc.asean.org/content/greenjobs/
ASEAN Centre for Energy. (2023, April). ASEAN Plan of Action for Energy Cooperation (APAEC) 2016–2025 Phase II: 2021–2025. https://asean.org/book/asean-plan-of-action-for-energy-cooperation-apaec-2016-2025-phase-ii-2021-2025/
ASEAN Secretariat. (2021, October). ASEAN state of climate change report: Current status and outlook of the ASEAN region toward the ASEAN climate vision 2050 (pp. 45–47). ASEAN Secretariat. https://www.iges.or.jp/en/pub/asean-state-climate-change-report/en
Widyaningtyas, N. (2023, October 5). ASEAN power grid dalam era energi terbarukan. Katadata. https://katadata.co.id/indepth/opini/651f70337ce72/asean-power-grid-dalam-era-energi-terbarukan
World Economic Forum. (2025, June). ASEAN energy transition meeting. https://www.weforum.org/stories/2025/06/asean-energy-transition-meeting/
