WEF: How ASEAN Can Seize Its Energy Opportunities
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 is home some of the world's fastest growing economies, but this growth has been driven by soaring energy demand.
Countries now need to meet future energy demand in an affordable and secure way, while also reducing carbon emissions.
Policy and collaboration between stakeholders will be key to enable ASEAN make a green transition and help countries reach net zero.
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 once slow but steady worldwide energy transition is now a rocky and uncertain global energy landscape for countries and companies to operate within. The global economic contraction in 2020 prompted by COVID-19 led to a reduction in global energy demand, carbon emissions and investments at an unprecedented scale, followed by an equally strong bounce in energy demand and emissions a year later.