Southeast Asia beyond the gas hype - greenpeace.org
Published December 02, 2025
Southeast Asia Beyond the Gas Hype
As Southeast Asia continues to navigate the complexities of energy production and consumption, the region is increasingly drawn into discussions surrounding natural gas as a transitional energy source. However, a deeper examination reveals that the reliance on natural gas may not be the optimal path forward for sustainable development. This article explores the current energy landscape in Southeast Asia, the implications of natural gas dependency, and the potential for renewable energy alternatives.
The Current Energy Landscape
Southeast Asia is experiencing rapid economic growth, which has led to a surge in energy demand. According to the International Energy Agency (IEA), energy demand in the region is projected to increase by 60% by 2040. This growth is primarily driven by urbanization, industrialization, and a rising middle class. Consequently, governments in the region are seeking reliable and affordable energy sources to support this development.
Natural gas has emerged as a favored option among policymakers and energy companies. The region holds significant reserves of natural gas, particularly in countries like Indonesia, Malaysia, and Myanmar. This has led to an expansion of gas infrastructure, including pipelines and liquefied natural gas (LNG) terminals, which are seen as essential for meeting the growing energy needs.
The Hype Around Natural Gas
Proponents of natural gas argue that it serves as a cleaner alternative to coal and oil, producing lower levels of carbon dioxide (CO2) and other pollutants when burned. The transition from coal to natural gas is often promoted as a step toward achieving climate targets, particularly in the context of the Paris Agreement.
However, this narrative overlooks several critical factors. Firstly, while natural gas does emit less CO2 than coal, it is still a fossil fuel that contributes to greenhouse gas emissions. The extraction, transportation, and combustion of natural gas can result in methane leaks, a potent greenhouse gas that is significantly more effective at trapping heat in the atmosphere than CO2. According to the Global Carbon Project, methane emissions from oil and gas operations have increased by 30% since 2000.
Economic Considerations
Investing heavily in natural gas infrastructure can also pose economic risks. The volatility of global gas prices can lead to financial uncertainty for countries that rely on imported gas. For instance, Southeast Asian nations such as Thailand and the Philippines have faced challenges due to fluctuating LNG prices, which can strain national budgets and impact energy affordability for consumers.
Moreover, the long-term investments required for gas infrastructure may divert funds away from renewable energy projects. As the world increasingly shifts towards sustainable energy sources, locking in significant investments in natural gas could hinder the region's ability to transition to cleaner technologies.
Renewable Energy Potential
Despite the allure of natural gas, Southeast Asia is rich in renewable energy resources that remain underutilized. The region has abundant solar, wind, hydroelectric, and geothermal potential. According to a report by the International Renewable Energy Agency (IRENA), Southeast Asia has the potential to generate over 1,700 gigawatts (GW) of renewable energy by 2030, significantly surpassing the current energy needs of the region.
Solar energy, in particular, has seen rapid growth in countries like Vietnam and Thailand, where favorable policies and declining costs have spurred investment. As of 2021, Vietnam had installed over 16 GW of solar capacity, making it one of the fastest-growing solar markets in the world. Similarly, Thailand has made significant strides in solar energy adoption, with a target to reach 6,000 MW by 2036.
Policy and Regulatory Frameworks
The transition to renewable energy in Southeast Asia is not without its challenges. Policymakers must navigate a complex landscape of regulations, incentives, and market dynamics. While some countries have made commendable progress in developing renewable energy frameworks, others lag behind due to outdated policies and resistance from vested interests in the fossil fuel sector.
For instance, Indonesia has set ambitious targets for renewable energy, aiming for a 23% share of renewables in its energy mix by 2025. However, the country continues to invest heavily in coal and natural gas, which raises concerns about the feasibility of achieving these targets. In contrast, countries like the Philippines have implemented feed-in tariffs and net metering policies that encourage the adoption of renewable energy technologies.
International Cooperation and Investment
To accelerate the transition to renewable energy, international cooperation and investment are crucial. Southeast Asian countries can benefit from sharing best practices, technology transfer, and financial support from developed nations. Initiatives such as the ASEAN Renewable Energy Policy Framework aim to enhance collaboration among member states and promote the integration of renewable energy into national energy plans.
Furthermore, private sector investment in renewable energy projects is essential for scaling up capacity and driving innovation. Multinational corporations and financial institutions are increasingly recognizing the potential of renewable energy in Southeast Asia, leading to a surge in funding for solar, wind, and other clean energy projects. According to BloombergNEF, investments in renewable energy in Southeast Asia reached $10 billion in 2020, with projections for continued growth in the coming years.
The Path Forward
As Southeast Asia grapples with the challenges of energy demand, climate change, and economic development, the path forward must prioritize sustainable solutions. While natural gas may appear to be a viable option in the short term, the long-term benefits of investing in renewable energy cannot be overlooked.
By harnessing the region's abundant renewable resources, Southeast Asian countries can reduce their carbon footprint, enhance energy security, and promote economic growth. The transition to renewable energy is not only essential for addressing climate change but also for ensuring a sustainable and prosperous future for the region.
Conclusion
The energy landscape in Southeast Asia is at a critical juncture. As governments and stakeholders consider their energy strategies, it is imperative to move beyond the gas hype and embrace the vast potential of renewable energy. By doing so, Southeast Asia can lead the way in the global transition to a sustainable energy future.
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