SINGAPORE, Oct 22 - The International Energy Agency (IEA) has called for Southeast Asia to significantly increase its clean energy investments to $190 billion by 2035, which is approximately five times the current level. This recommendation is part of a broader effort to meet the region's climate objectives.
The IEA report emphasizes that enhancing energy investments must coincide with strategies aimed at reducing emissions from the region's coal-fired power plants. The report highlights concerns regarding the impact of rapid economic expansion on energy security and climate targets.
Despite a push from wealthier Western nations to expedite the closure of coal power plants in emerging markets, progress has stalled. A deadline in July for an early closure of an Indonesian pilot project passed without a resolution.
Electricity demand in Southeast Asia is projected to grow at an annual rate of 4% in the coming years. Clean energy sources such as wind, solar, modern bioenergy, and geothermal power are expected to contribute to over one-third of this growth by 2035, according to the IEA.
However, this shift is not anticipated to sufficiently curb the region's energy-related carbon dioxide emissions, which are expected to rise by 35% by mid-century. IEA's executive director, Fatih Birol, noted that the pace of clean energy technology expansion is inadequate, and reliance on fossil fuel imports poses significant future risks.
Currently, Southeast Asia attracts only 2% of global clean energy investments, despite accounting for 6% of global GDP, 5% of global energy demand, and housing 9% of the world’s population. To support a greater share of renewable energy, the region's power grid will require annual investments to nearly double to approximately $30 billion by 2035.