Green industrial policy race in Asia quickens despite US retreat - East Asia Forum
Published January 16, 2026
Accelerating Green Industrial Policy in Asia Amidst U.S. Withdrawal
The competitive landscape of green industrial policies in Asia is intensifying, particularly as the United States adopts a more withdrawn stance in global climate initiatives. Countries across the region are ramping up their efforts to establish themselves as leaders in renewable energy and sustainable practices, responding to both domestic needs and international pressures.
In recent years, the urgency for nations to transition to green economies has been magnified by the increasing impacts of climate change. As a result, many Asian countries are not only committing to ambitious climate targets but are also implementing comprehensive industrial policies aimed at fostering renewable energy sectors. This trend is underscored by significant investments in clean energy technologies, infrastructure development, and regulatory frameworks that support sustainable practices.
China's Dominance in Renewable Energy
China remains at the forefront of this green industrial policy race, solidifying its position as a global leader in renewable energy production. The nation has invested heavily in solar and wind energy, with plans to expand its renewable energy capacity to 1,200 gigawatts by 2030. This ambitious target aligns with China's broader goal of achieving carbon neutrality by 2060.
Moreover, China's government has introduced various incentives to promote the adoption of electric vehicles (EVs), including subsidies for manufacturers and consumers alike. The country has established itself as the largest market for EVs, accounting for over 50% of global sales in recent years. This rapid growth is supported by significant investments in charging infrastructure and battery technology, further enhancing China's competitive edge in the green technology sector.
Japan's Green Growth Strategy
Japan is also making strides in green industrial policy, particularly through its Green Growth Strategy, which aims to achieve net-zero emissions by 2050. The government has outlined specific sectors to focus on, including renewable energy, hydrogen, and energy efficiency technologies. Japan's commitment to increasing its renewable energy share to 36-38% by 2030 reflects its dedication to transitioning away from fossil fuels.
In addition, Japan is investing in research and development for next-generation technologies, such as offshore wind and carbon capture and storage (CCS). The government's proactive approach is designed to stimulate private sector investment and foster innovation in clean energy technologies.
South Korea's Green New Deal
South Korea has introduced its own Green New Deal, which aims to create jobs and stimulate economic growth while addressing climate change. The plan includes significant investments in renewable energy, with a target of generating 20% of its electricity from renewable sources by 2030. This initiative is part of South Korea's broader commitment to achieving carbon neutrality by 2050.
The Green New Deal also emphasizes the importance of transitioning to a circular economy, which promotes sustainable resource management and waste reduction. South Korea's government is actively encouraging businesses to adopt green practices and invest in environmentally friendly technologies.
ASEAN's Collaborative Efforts
In Southeast Asia, the Association of Southeast Asian Nations (ASEAN) is working collaboratively to enhance regional energy security and promote sustainable development. The ASEAN Plan of Action for Energy Cooperation outlines strategies for increasing the share of renewable energy in the region's energy mix, with a goal of achieving 23% by 2025.
Countries like Indonesia and Vietnam are making significant investments in renewable energy projects, focusing on solar, wind, and hydropower. These nations are also exploring partnerships with international organizations and private sector investors to accelerate the development of clean energy infrastructure.
India's Renewable Energy Ambitions
India is another key player in the green industrial policy landscape, with an ambitious target of achieving 450 gigawatts of renewable energy capacity by 2030. The country has made substantial progress in solar energy deployment, becoming one of the largest solar markets in the world. India's National Solar Mission aims to promote the adoption of solar energy technologies and reduce dependence on fossil fuels.
Furthermore, India is focusing on enhancing its energy efficiency and promoting sustainable practices across various sectors. The government is implementing policies to encourage investment in clean energy technologies and is actively seeking to attract foreign direct investment in the renewable energy sector.
Challenges and Opportunities
Despite the positive momentum in green industrial policies across Asia, several challenges remain. These include regulatory hurdles, financing constraints, and the need for technological advancements. However, the increasing urgency to address climate change presents significant opportunities for innovation and collaboration among countries in the region.
As the U.S. retreats from its previous leadership role in global climate initiatives, Asian countries are poised to fill the void and lead the way in green industrial policy. The competitive dynamics in the region are likely to drive further advancements in renewable energy technologies and sustainable practices, ultimately contributing to global efforts to combat climate change.
Conclusion
The race for green industrial policy in Asia is accelerating, with countries actively pursuing strategies to enhance their renewable energy capacities and promote sustainable development. As nations respond to the challenges posed by climate change, the region is witnessing a surge in investments and innovations aimed at building a greener future. The ongoing commitment to renewable energy and sustainable practices will not only benefit individual countries but also contribute to global efforts in addressing climate change and fostering a sustainable world.
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