Leapfrogging in Asia can drive clean energy transitions

As the world faces unprecedented climate challenges, Asia stands at the forefront of a transformative shift in energy landscapes. By leapfrogging over traditional, carbon-intensive development stages in favor of cleaner and more sustainable technologies, the region is paving the way for a sustainable future. The importance of leapfrogging in aligning Asia’s efforts to its climate commitments emerged as a recurring theme in the dialogues at the Economist Impact Event’s ‘3rd Sustainability Week Asia’. The urgent need to combat climate change, reduce greenhouse gas emissions, and ensure sustainable economic growth makes leapfrogging vital for Asia’s green future. By focusing on large-scale adoption of renewable energy, technological innovation, policy frameworks, and international collaboration, leapfrogging could guide Asia towards a sustainable energy future while addressing the challenges posed by climate change.

Southeast Asia’s Strategic Shift to Renewables: The Current Scenario

Southeast Asia is one of the world’s most climate-vulnerable regions. As energy demands in Southeast Asia are expected to triple by 2050, the region stands at a critical juncture. While the period between 1990-2020 marked rapid progress and economic growth, it also saw a doubling of CO2 emissions, heightening risks of natural disasters, agricultural disruptions, and health implications.

In response, several Southeast Asian nations have unveiled ambitious plans and agreements to combat climate change. Indonesia’s state-owned electricity company, PT Perusahaan Listrik Negara (PLN), signed fourteen strategic agreements at COP28 to accelerate renewable energy adoption. Meanwhile, Vietnam approved the Power Development Plan (PDP8), emphasising wind and gas energy while reducing reliance on traditional fuels.

As Southeast Asia ramps up its renewable energy efforts, the region faces significant challenges that require robust policy support and international cooperation. Strong governmental backing for clean energy projects is crucial, but a just transition requires global collaboration. Access to climate finance, technology transfer, and capacity-building are prominent challenges in the region. Multi-stakeholder collaboration across public and private sectors is needed to speed up access to capital and skills. Global support for Southeast Asia’s energy transition could help meet 75% of the projected increase in electricity demand originating from emerging markets and developing economies by 2050.