Clean energy in APAC: balancing net zero, gas and nuclear - Mitsubishi Heavy Industries, Ltd.
Published February 19, 2026
Clean Energy in APAC: Balancing Net Zero, Gas, and Nuclear
Mitsubishi Heavy Industries, Ltd. has recently published insights into the evolving landscape of clean energy within the Asia-Pacific (APAC) region. The report emphasizes the need for a balanced approach to achieving net zero emissions while integrating natural gas and nuclear energy into the energy mix.
The APAC region, home to over half of the world's population, is experiencing rapid economic growth, leading to increased energy demands. As countries strive to meet these demands, they are also under pressure to reduce greenhouse gas emissions in line with global climate goals. The challenge lies in balancing the transition to renewable energy sources with the continuing reliance on fossil fuels and nuclear power.
Current Energy Landscape in APAC
As of 2023, the energy landscape in APAC is diverse, with countries at various stages of energy transition. Many nations are still heavily dependent on coal and natural gas, which are significant contributors to carbon emissions. However, there is a growing recognition of the importance of transitioning to cleaner energy sources.
According to the International Energy Agency (IEA), the region's energy demand is projected to grow by 30% by 2040. This growth is primarily driven by economic development, urbanization, and population increases. In response, governments are implementing policies aimed at reducing carbon footprints and promoting sustainable energy solutions.
The Role of Natural Gas
Natural gas is often viewed as a bridge fuel in the transition towards a low-carbon future. It emits approximately 50% less carbon dioxide when burned compared to coal, making it a more environmentally friendly option for electricity generation. Countries such as Japan, South Korea, and China are increasingly incorporating natural gas into their energy portfolios.
Japan, for instance, has significantly ramped up its liquefied natural gas (LNG) imports following the Fukushima nuclear disaster in 2011, which led to a temporary shutdown of nuclear power plants. The country aims to reduce its reliance on coal while increasing the share of natural gas in its energy mix. The Japanese government has set a target to achieve net zero emissions by 2050, which will require substantial investments in LNG infrastructure and technology.
Nuclear Energy's Contribution
Nuclear energy is another critical component of the clean energy strategy in APAC. It provides a stable and reliable source of electricity with minimal carbon emissions. Countries like China and India are expanding their nuclear capabilities to meet growing energy demands while adhering to climate commitments.
China, in particular, is investing heavily in nuclear power, with plans to increase its nuclear capacity to 70 gigawatts (GW) by 2025. This ambitious goal is part of China's broader strategy to peak carbon emissions before 2030 and achieve carbon neutrality by 2060. Meanwhile, India is also focusing on nuclear energy as a key element of its energy strategy, with plans to increase its nuclear capacity significantly over the coming decades.
Renewable Energy Integration
While natural gas and nuclear energy play essential roles in the transition, renewable energy sources such as solar, wind, and hydropower are at the forefront of the clean energy movement in APAC. The region is witnessing a surge in renewable energy investments, driven by declining technology costs and supportive government policies.
According to the IEA, renewable energy is expected to account for nearly 50% of the region's power generation by 2040. Countries like China and India are leading the way in solar and wind energy deployment. China is the world's largest producer of solar panels and has set ambitious targets for renewable energy generation, aiming to reach 1,200 GW of solar capacity by 2030.
India, on the other hand, has set a target of achieving 450 GW of renewable energy capacity by 2030, with a significant focus on solar energy. The country's National Solar Mission aims to promote the development and deployment of solar technologies across the nation.
Challenges and Opportunities
Despite the progress being made, the transition to a cleaner energy future in APAC is not without challenges. The reliance on fossil fuels, particularly coal, remains a significant barrier to achieving net zero emissions. Additionally, the integration of renewable energy sources into existing grids poses technical and logistical challenges.
Moreover, financing the transition to clean energy is crucial. The region requires massive investments in infrastructure, technology, and research to facilitate the shift towards renewable energy. According to the Asian Development Bank, the region will need to invest approximately $1.7 trillion annually in energy infrastructure to meet its climate goals.
However, these challenges also present opportunities for innovation and collaboration. Public and private sectors can work together to develop new technologies, improve energy efficiency, and create sustainable energy solutions. Governments can also implement policies that incentivize clean energy investment and foster a competitive market for renewable technologies.
Conclusion
The path to a sustainable energy future in the APAC region involves balancing the roles of natural gas, nuclear energy, and renewables. As countries strive to meet their energy demands and climate commitments, a multifaceted approach will be essential. Mitsubishi Heavy Industries, Ltd. emphasizes the importance of collaboration among stakeholders to ensure a successful transition to a cleaner energy landscape.
As the region continues to evolve, the integration of diverse energy sources will play a vital role in achieving net zero emissions while supporting economic growth and energy security. The ongoing developments in the APAC clean energy sector will be closely watched as countries navigate the complexities of energy transition in the coming years.
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