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Government’s contribution in supporting the energy transition in ASEAN Countries.

The Association of Southeast Asian Nations (ASEAN) comprises ten member states with diverse energy profiles and developmental stages. These member states are Singapore, Malaysia, Thailand, Vietnam, Cambodia, Indonesia, Lao PDR, Myanmar, Philippines, and Brunei. 

Collectively ASEAN population exceeding 600 million over a landmass of 4.5 million km2, generating a gross domestic product (GDP) of approximately US$10.2 trillion in 2022, constituting roughly 6.5% of global GDP (PPP). 

It is predicted to be the fourth-largest economy by 2050, trailing the European Union, North America, and China/Hong Kong, emerges as an expanding centre of consumer demand and has the third-largest labour pool globally, behind China and India.

More importantly, Southeast Asia serves as a pivotal trade conduit linking Western nations and China, it has long-term trade partnership with Australia, NZ, China, India, Japan, and South Korea. 

Governments within ASEAN are increasingly recognising the importance of transitioning towards sustainable and low-carbon energy systems due to concerns about energy security, environmental sustainability, and climate change. 

Here are several ways ASEAN governments are supporting the energy transition:
Policy Frameworks

ASEAN governments are developing and implementing policy frameworks to promote renewable energy (RE) deployment and energy efficiency (EE) measures. These policies often include targets, incentives, and regulations to encourage investment and adoption of clean energy technologies.

Renewable Energy Targets

Many ASEAN countries have set renewable energy targets as part of their national energy strategies. These targets vary in ambition but generally aim to increase the share of renewables in the energy mix over time. Governments may provide incentives such as feed-in tariffs, tax credits, or subsidies to support renewable energy projects.

Investment Incentives

ASEAN governments are offering various incentives to attract investment in clean energy projects. These incentives may include tax breaks, favorable financing terms, or guarantees against political risks. Governments also facilitate public-private partnerships (PPPs) to finance and implement renewable energy infrastructure projects.

Research and Development

Governments in ASEAN are investing in research and development (R&D) to drive innovation in clean energy technologies. This includes funding research institutions, establishing innovation hubs, and supporting collaboration between industry and academia to develop and commercialize new technologies

Capacity Building and Technical Assistance

ASEAN governments are providing capacity building and technical assistance to support the development and implementation of renewable energy and energy efficiency projects. This may involve training programs, knowledge sharing initiatives, and technical support to build local expertise and capabilities

Regional Cooperation

ASEAN member states are collaborating on regional initiatives to promote the energy transition. This includes the ASEAN Plan of Action for Energy Cooperation (APAEC), which outlines strategic goals and priority areas for regional energy cooperation, including renewable energy development and energy efficiency improvement

Integration of Renewable Energy into National Grids

ASEAN governments are working to integrate renewable energy into national electricity grids to ensure reliable and stable power supply. This involves upgrading infrastructure, implementing smart grid technologies, and developing grid codes and standards to accommodate variable renewable energy sources

Carbon Pricing and Emissions Reduction

Some ASEAN countries are exploring or implementing carbon pricing mechanisms, such as carbon taxes or emissions trading schemes, to incentivize emissions reductions and promote investments in clean energy technologies

Public Awareness and Education

ASEAN governments are raising public awareness about the importance of the energy transition and promoting energy conservation and sustainable lifestyles through education campaigns and outreach programs

Overall, ASEAN governments are taking various measures to support the energy transition, recognizing the importance of sustainable energy development for economic growth, environmental protection, and climate resilience in the region.

AFA and CPA Australia Publish a Summary Report on ESG in ASEAN
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