Socio-economic footprint of the energy transition: Southeast Asia (2nd edition) - IRENA – International Renewable Energy Agency
Published January 10, 2026
Socio-economic Footprint of the Energy Transition: Southeast Asia (2nd Edition)
The International Renewable Energy Agency (IRENA) has released the second edition of its comprehensive report titled "Socio-economic footprint of the energy transition: Southeast Asia." This report delves into the significant socio-economic impacts of transitioning to renewable energy sources in Southeast Asia, highlighting the multifaceted benefits and challenges associated with this shift.
Overview of the Energy Transition in Southeast Asia
Southeast Asia is experiencing a transformative energy transition, driven by the urgent need to address climate change, enhance energy security, and promote sustainable development. With a growing population and increasing energy demand, the region faces the dual challenge of meeting energy needs while reducing greenhouse gas emissions. The report underscores that the transition to renewable energy is not only crucial for environmental sustainability but also presents numerous socio-economic opportunities.
Key Findings of the Report
The IRENA report outlines several key findings related to the socio-economic impacts of the energy transition in Southeast Asia:
Job Creation
One of the most significant benefits of the energy transition is the potential for job creation. The report estimates that by 2030, the renewable energy sector could generate approximately 2.2 million jobs in Southeast Asia. This includes positions in solar, wind, and biomass energy sectors, as well as in energy efficiency and storage technologies. The transition is expected to create jobs across various skill levels, from skilled engineering roles to opportunities in manufacturing and installation.
Economic Growth
The report highlights that investments in renewable energy can stimulate economic growth in the region. By 2030, it is projected that the renewable energy sector could contribute approximately USD 100 billion to the Southeast Asian economy. This growth is attributed to increased investments in infrastructure, technology, and human capital, which can enhance productivity and drive innovation.
Energy Security
Transitioning to renewable energy sources is also vital for enhancing energy security in Southeast Asia. The region is heavily reliant on fossil fuel imports, which exposes it to price volatility and supply disruptions. By investing in local renewable energy resources, countries can reduce their dependence on imported fuels, thereby increasing energy independence and resilience.
Environmental Benefits
The environmental benefits of the energy transition are profound. The report suggests that a shift to renewable energy could lead to a significant reduction in greenhouse gas emissions. By 2030, Southeast Asia could reduce its emissions by up to 30% compared to a business-as-usual scenario. This reduction is crucial for meeting international climate commitments and mitigating the impacts of climate change.
Challenges to the Energy Transition
Despite the numerous benefits, the report also identifies several challenges that must be addressed to facilitate a successful energy transition in Southeast Asia:
Investment Gaps
One of the primary challenges is the need for substantial investments in renewable energy infrastructure. The report estimates that Southeast Asia will require approximately USD 300 billion in investments by 2030 to achieve its renewable energy targets. This funding gap poses a significant hurdle, necessitating innovative financing solutions and policy frameworks to attract private sector investments.
Policy and Regulatory Frameworks
Effective policy and regulatory frameworks are essential for fostering the growth of the renewable energy sector. The report emphasizes the need for governments to establish clear and stable policies that support renewable energy development, including incentives for clean energy investments, streamlined permitting processes, and supportive grid integration measures.
Skill Development
As the renewable energy sector expands, there will be a growing demand for skilled labor. The report highlights the importance of investing in education and training programs to equip the workforce with the necessary skills for the renewable energy industry. This includes technical training in areas such as solar panel installation, wind turbine maintenance, and energy efficiency practices.
Regional Cooperation and Collaboration
The IRENA report emphasizes the importance of regional cooperation and collaboration among Southeast Asian countries to facilitate the energy transition. By sharing best practices, knowledge, and resources, countries can accelerate the deployment of renewable energy technologies and enhance regional energy security.
Conclusion
The second edition of the IRENA report "Socio-economic footprint of the energy transition: Southeast Asia" provides a comprehensive analysis of the socio-economic impacts of transitioning to renewable energy in the region. With the potential for job creation, economic growth, enhanced energy security, and significant environmental benefits, the energy transition presents a crucial opportunity for Southeast Asia. However, addressing the challenges of investment gaps, policy frameworks, and skill development will be essential for realizing the full potential of this transition. Through regional cooperation and collaboration, Southeast Asian countries can work together to create a sustainable and prosperous energy future.
For further details, the full report can be accessed through the IRENA website.
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