Key highlights from the report “The race to invest in Southeast Asia’s green economy” by Zero Carbon Analytics are:
● International investment in clean energy is gaining momentum in the Association of Southeast Asian Nations (ASEAN). Since 2020, the number of international investment projects in clean energy in the region has increased by 15% per year on average.
● Using data from WRI, OCI and Lowy, China leads public investment, investing over USD 2.7 billion in clean energy in key ASEAN markets of Indonesia, Philippines, Thailand, Malaysia and Vietnam between 2013 and 2023.
● Breaking it down by renewable technology, Japan is the region’s biggest investor in geothermal and solar, investing approximately USD 1.3 billion and USD 142 million respectively between 2013 and 2023. In the same period, China was the biggest investor in wind at approximately USD 1.28 billion, and hydropower at USD 1.1 billion. Japan and South Korea were the second and third-largest investors in hydropower at USD 641 million and USD 514 million, respectively.
● China also led in clean energy trade with these five Southeast Asian countries, at USD 4.3 billion, driven by strong exports of EV batteries, solar modules and wind components. However, South Korea was the largest exporter of battery components to Indonesia and Malaysia, and Japan was the largest exporter of electric buses and vehicles to the Philippines.
● China, Japan, South Korea, and Australia all have a variety of climate-related policies and initiatives targeting ASEAN. China’s BRI is the most established initiative.
● Motivations for expanding climate initiatives and policies in the region may include economic opportunities from clean trade, regional cooperation in response to geopolitical volatility, and access to key resources such as critical minerals.
Access the report here
