SEA energy transition outlook: fossil fuels’ future

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SOUTHEAST Asia, marked by rapidly developing economies and abundant natural resources, has traditionally relied on fossil fuels for energy. The region’s energy landscape has historically combined coal, oil and natural gas, supporting industrialization and economic growth since the mid-20th century. However, growing awareness of climate change, alongside rising energy demand and environmental degradation, has sparked a significant shift toward sustainable energy solutions.

The global push for climate action, epitomized by international agreements like the Paris Agreement, has intensified the need for Southeast Asia to reassess its energy strategies. Governments are increasingly pressured to reduce greenhouse gas emissions and invest in renewable energy (RE) sources. Consequently, Southeast Asia finds itself at a crossroads, striving to balance economic growth, energy security and environmental sustainability.

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