China’s Cooperation with Southeast Asia to Support More Ambitious Clean Energy Transition by 2030
HOW CAN CHINA HELP: INSIGHTS FROM THE THREE CONVENINGS
Enhancing private sector involvement is pivotal to the success of Southeast Asia's transition to clean energy. A more prominent role for development finance is necessary to spur private investment in this critical transition. At the same time, mobilizing private investment in Southeast Asia's renewable energy sector is hampered by issues such as inadequate grid infrastructure, land acquisition difficulties, opaque permitting processes, etc.
Against this backdrop, a series of private convenings were held in 2023, focusing on how China can support large-scale renewable energy investment in Southeast Asia in ways that maximize the developmental impact of this investment and complement other major regional initiatives and programs. Experts highlighted the importance of having:
- Deeper local reforms for fostering a conducive environment for renewable energy investment in Southeast Asia.
- A broader agenda that goes beyond investment mobilization.
- An integrated, multi-dimensional solution package to support Southeast Asia’s clean electricity transition.
Convening Summary: Investment Needs and Green Finance Mechanisms
THE CLEAN PROSPERITY PLAN: AN INTEGRATED SOLUTION
The "Clean Prosperity Plan" outlines a package of project-oriented recommendations, aimed at promoting socioeconomic prosperity and climate security in Southeast Asia. It prioritizes joint efforts between China and Southeast Asia, leveraging industrial demand for clean energy and emphasizing the implementation of green industrialization and renewable energy projects that are immediately viable via project-specific policy support and international support.
The plan represents a leverage point for greater impact by circumventing the complexities and delays often associated with deeper reforms necessary for creating an enabling environment for private investment. Consequently, it can bring immediate benefits in terms of increased investment and jobs, leading to a virtuous cycle where early success inspire further ambitions.
IN THE MEDIA
Press Release, New Report | China’s Cooperation with Southeast Asia to Support More Ambitious Clean Energy Transition by 2030
Muyi Yang an Alistair Ritchie, How China Can Help Change the Game for Clean Energy in Southeast Asia (Op-Ed)
Muyi Yang, China Remains key to Success of Southeast Asia’s Energy Transition, China Dialogue (Op-ed)
Muyi Yang, Navigating Geopolitical Complexity Through Collective Action on Clean Energy Transition in South-East Asia, Forum (Journal)
PROJECT TEAM
Supported by Energy Foundation China
ABOUT THE PROJECT
The Asia Society Policy Institute, in partnership with Energy Foundation China, initiated this project to support the clean energy transition in Southeast Asia. The primary objective is to foster greater financial, technical, and policy cooperation between China and the region, in order to achieve more ambitious clean energy transition and carbon emission reductions by 2030. The project comprised a series of three convenings, supplemented by expert consultations, all dedicated to addressing critical questions regarding clean energy investment in the region. The insights gained from these engagement are synthesized into a final report that outlines a set of practical recommendations for policymakers, financial institutions, and clean energy companies in both China and Southeast Asia.