Background

The workshop was organised by the UK Government, its ASEAN Low Carbon Energy Programme and Indonesia Renewable Energy Programme and in collaboration with the Energy Transition Partnership. We welcome a lively knowledge-sharing session on financing investments in renewable energy in South East Asia, including consideration of post COVID economic recovery.

Southeast Asia is a critical region in the fight to reduce climate impacts exacerbated by fossil fuel usage. Its growing economies will increase energy usage and - unless shifting towards cleaner energy sources – harmful emissions. The region is the world’s fastest growing source of carbon emissions. But there is insufficient infrastructure, capacity and capability to make a rapid shift to low carbon without significant green finance, and without policy support. Post-COVID this will be needed more than ever. ADB estimates that Southeast Asia will require $210 billion per year until 2030 to ensure all new infrastructure is sustainable and able to withstand the impacts of climate change.

Southeast Asia has the potential to transition to renewable energy sources of power coupled with energy efficiency measures to meet its social and economic growth demands. IRENA’s analysis indicates that for every $1 investment in energy transition results in $3-$5 returns to the economy in the form of new investments, jobs, increase global trade as well as improvements in health and environment. Some of the segments of the energy sector that need priority investment include new investments in RE generation, storage, flexibility, energy efficiency in end use sectors. This will require substantial shifts in investment practices and flows – and innovative thinking.