Southeast Asia's Rising Energy Demand and Climate Challenges

Southeast Asia is projected to account for 25% of global energy demand growth through 2035, driven by economic and population expansion, according to the International Energy Agency (IEA). This surge in energy demand is expected to surpass that of the EU by mid-century, resulting in a 35% increase in energy-related CO2 emissions. Although clean energy sources are anticipated to supply over a third of the region's energy growth by 2035, this will not be sufficient to meet emissions reduction goals aligned with COP28 objectives. The IEA emphasizes the urgent need for increased clean energy investments, as the region currently receives only 2% of global funding despite its significant economic footprint. Concurrently, the South Asia Clean Energy Forum has convened leaders to address climate challenges and promote clean energy initiatives, with a commitment from the US to support the region's transition. Strategies to diversify supply chains and reduce reliance on Chinese clean technology are also emerging as essential for the global clean energy transition.