Towards a Just Energy Transition in Southeast Asia - fulcrum.sg
Published December 14, 2025
Towards a Just Energy Transition in Southeast Asia
The transition to renewable energy in Southeast Asia is gaining momentum, driven by the urgent need to address climate change and the desire for sustainable economic growth. However, this shift poses significant challenges, particularly in ensuring that the transition is equitable and just for all stakeholders involved. Policymakers, businesses, and civil society must collaborate to create frameworks that facilitate a just energy transition, balancing environmental sustainability with social equity.
In recent years, Southeast Asia has been identified as a region with immense potential for renewable energy development. According to the International Renewable Energy Agency (IRENA), the region has the capacity to generate over 1,000 gigawatts (GW) of renewable energy by 2030, primarily through solar, wind, and hydropower. The rapid growth of these technologies presents a unique opportunity to reduce reliance on fossil fuels and contribute to global climate goals.
Despite this potential, the energy transition in Southeast Asia faces several hurdles. Many countries in the region are still heavily dependent on coal and natural gas for their energy needs. For instance, in 2020, coal accounted for approximately 40% of the total energy mix in Southeast Asia, with countries like Indonesia and Vietnam being among the largest coal consumers. This dependency not only contributes to greenhouse gas emissions but also poses risks to energy security and economic stability.
To achieve a just energy transition, it is crucial to address the social implications of moving away from fossil fuels. The transition may lead to job losses in traditional energy sectors, particularly in coal mining and fossil fuel extraction. A report from the Asian Development Bank (ADB) estimates that transitioning to renewable energy could result in the loss of around 1.5 million jobs in the coal sector by 2030. Therefore, it is essential to develop strategies that provide support for affected workers and communities, ensuring they have access to new opportunities in the renewable energy sector.
One approach to fostering a just energy transition is through the implementation of reskilling and upskilling programs. These initiatives can help workers transition into new roles within the renewable energy industry, which is expected to create millions of jobs in the coming years. For example, the IRENA projects that the renewable energy sector could generate up to 24 million jobs globally by 2030, with a significant portion of these opportunities arising in Southeast Asia.
Moreover, it is vital to engage local communities in the energy transition process. Community involvement can help ensure that renewable energy projects are designed and implemented in a way that meets the specific needs and preferences of the local population. This can lead to greater acceptance of renewable energy initiatives and enhance their overall effectiveness. Policymakers should prioritize participatory approaches that involve stakeholders at all levels, from local communities to national governments.
Another critical aspect of a just energy transition is the need for equitable access to clean energy. Currently, millions of people in Southeast Asia still lack access to reliable electricity. According to the World Bank, approximately 200 million people in the region live without electricity, primarily in rural areas. Expanding access to renewable energy can help address this issue, providing underserved populations with reliable and affordable energy sources. Off-grid renewable energy solutions, such as solar home systems and mini-grids, can play a crucial role in bridging the energy access gap.
Furthermore, financial support and investment are essential for facilitating the energy transition. The transition to renewable energy requires significant upfront capital, which can be a barrier for many countries in Southeast Asia. The ADB estimates that the region will need to invest approximately $2.5 trillion in energy infrastructure by 2030 to meet its energy needs and achieve climate goals. Innovative financing mechanisms, such as green bonds and climate funds, can help mobilize the necessary resources for renewable energy projects.
International cooperation is also vital in supporting Southeast Asia's energy transition. Developed countries can play a crucial role by providing technical assistance, capacity building, and financial resources to help Southeast Asian nations develop their renewable energy sectors. Initiatives such as the ASEAN Plan of Action for Energy Cooperation (APAEC) aim to enhance regional collaboration in energy development, focusing on renewable energy, energy efficiency, and energy security.
As Southeast Asia embarks on its journey towards a just energy transition, it is essential to prioritize policies that promote social equity and environmental sustainability. Governments must establish regulatory frameworks that incentivize renewable energy investments while ensuring that the benefits of the transition are distributed fairly among all segments of society.
In conclusion, achieving a just energy transition in Southeast Asia is a complex but necessary endeavor. By addressing the challenges of job displacement, community engagement, energy access, and financial investment, the region can harness its renewable energy potential while promoting social equity. Collaborative efforts among governments, businesses, and civil society will be crucial in ensuring that the transition to a sustainable energy future is just and inclusive for all.