ASEAN moves toward greener development

COP28 consensus will help member states accelerate transition, experts say

Southeast Asian countries are expected to boost renewable energy development in line with the global commitment to accelerate energy transition, experts said.

Members of the Association of Southeast Asian Nations were among the 198 signatories of the UAE Consensus on Dec 13 at the 28th Conference of the Parties to the UN Framework Convention on Climate Change, or COP28, held in Dubai, the United Arab Emirates.

The consensus called on all parties to transition away from fossil fuels to reach net zero by 2050, keeping global temperature rise well below 2 C. It also set a target to triple renewables and double energy efficiency by 2030.

Experts said the new climate agreement will encourage ASEAN members, which are among the world's most climate-vulnerable countries, to accelerate the move toward clean energy generation.

However, they also noted that such a transition can only be possible through huge investments, which are needed to wean ASEAN economies off fossil fuels.

Helena Varkkey, associate professor of environmental politics and governance at the University of Malaya in Kuala Lumpur, said the "strong language" on transitioning away from fossil fuels in the UAE Consensus is significant for ASEAN, where many member countries have state-owned oil and gas companies.

"It is very important for these developing countries to have a basis to further push for a just and orderly energy transition, especially in terms of the financial support needed to facilitate this transition," Varkkey said.

Renato Redentor Constantino, adviser to the Vulnerable 20 Group of Finance Ministers, said the ultimate yardstick of COP28 will depend on economic benefits.

"Political commitments need to be translated into domestic investments," he said. "Otherwise, what's the point?"

New energy consumption

ASEAN is among the world's fastest-growing economies and rapid growth has likewise boosted energy consumption.

According to a joint report by the International Energy Agency and Imperial College London, natural gas and coal account for 75 percent of the region's total power generation, while the installed capacity of coal-fired power plants has grown at an annual rate of 7 percent since 2017. Renewable power accounts for about 25 percent of installed capacity and power generation, the bulk of which comes from hydropower.

"Without a dramatic shift in domestic policies and planning, complemented by financial support from international investors, ASEAN's rising electricity demand is likely to be met mainly by fossil fuels," the joint report said.

The report noted that despite falling costs around the world for renewable technologies, solar and wind project costs remain elevated in Southeast Asia due to the lack of deployment scale and underdevelopment of supply chains. It added that the region also has a problem accessing lowcost financing.

So far, Indonesia and Vietnam are the only two ASEAN countries that have managed to secure funding through the Just Energy Transition Partnership. Under this agreement, the Group of Seven nations pledged to extend financing to Indonesia and Vietnam so that they could retire their coal plants and move toward green energy.

Putra Adhiguna, director of think tank Energy Shift Institute in Jakarta, said even before the signing of the UAE Consensus, investments in renewable energy in ASEAN have been picking up.

He said the UAE Consensus is bringing in new flow of investments in the region's clean energy sector, citing Abu Dhabi energy company Masdar's investment deals with Indonesia and Malaysia.

Masdar and Indonesia's state utility firm PLN jointly funded a floating solar plant in West Java province, while Masdar also signed an agreement with the Malaysian Investment Development Authority to develop up to 10 gigawatts of renewable energy projects by 2035.

Adhiguna also said Singapore's decision to import wind power and solar energy from Cambodia, Indonesia and Vietnam "will push these countries to (hit global) renewable energy targets even if that means that they will need to sell it to Singapore first".

Singapore is targeting to import 4 GW of clean energy by 2035 in line with the city-state's commitment to decarbonize.

prime@chinadailyapac.com