Kota Kinabalu: With Asia now driving half of the world’s energy consumption and responsible for 60 per cent of global carbon emissions, the region stands at a pivotal crossroads – either lead a sustainable energy transition or risk deepening the climate crisis it is helping to accelerate.
Prime Minister Datuk Seri Anwar Ibrahim described this duality as “just the beginning” of a broader economic renaissance that must be guided by foresight, equity and environmental responsibility.
At Energy Asia 2025 in Kuala Lumpur, he outlined Malaysia’s vision for an energy transition that is inclusive, pragmatic and regionally interconnected.
“Even as growth accelerates, our commitment to climate action remains resolute,” he said.
He warned that the interconnected global energy system is increasingly vulnerable, not just to market volatility but also to geopolitical fragmentation and protectionism.
“This fragility is perhaps most evident in the energy and climate domain. Rather than fostering collaboration, we are witnessing polarising policy shifts driven by strategic competition, even as energy security remains out of reach for many,” he said.
Anwar also rejected zero-sum approaches to energy and climate policy. Advocating, instead, for a path that acknowledges Asia’s development needs. He called for equity and inclusiveness to be baked into every aspect of decarbonisation.
“Efforts that ignore the needs of the poor and vulnerable risk deepening inequality. Energy security must go beyond supply stability to include social justice and inclusive access,” he said.
This principle lies at the heart of what Anwar referred to as a “just and equitable energy transition”. While Asia pursues ambitious climate goals, it must also contend with the energy needs of billions still climbing out of poverty. Access to affordable, reliable power remains a development imperative, not a luxury.
“The path to net zero must recognise that renewable energy can be complemented by emissions-abated oil and gas,” he said, calling for realism over dogma.
Within Southeast Asia, momentum for clean energy is growing, eight out of 10 Asean countries have set net zero targets and the region collectively committed at the 28th United Nations Climate Change Conference (COP28) held in Dubai in 2023, to tripling renewable energy capacity to 11,000 GW by 2030.
Anwar highlighted the importance of regional collaboration and integration in advancing this transition. He referenced the Kuala Lumpur Declaration on Asean 2045, adopted at the recent 46th Asean Summit, as a cornerstone of this shared commitment.
“Our vision for Asean 2025 reflects this belief, as we strive to strengthen centrality and cohesion within the region and with friendly nations,” he said.
A major development in this regard is the acceleration of the Asean Power Grid (APG), a regional initiative that aims to establish a cross-border electricity trading network across member states.
“We took a significant step forward by establishing a dedicated APG financing facility network. This will enhance cross-border funding flows and bring us closer to a truly integrated regional energy market,” he said.
Infrastructure interconnectivity is key, but so is regulatory alignment. That’s where another important milestone comes in: the Asean Carbon Capture and Storage (CCS) Deployment Framework and Roadmap, which is designed to harmonise carbon policies across member states.
This regional strategy envisions carbon capture not just as a decarbonisation tool, but also as an economic opportunity for Asean to position itself as a global player in carbon storage services.
“Asean has already laid the groundwork for this pragmatic pathway,” Anwar said, urging policymakers and financiers to view emissions-abatement technologies as complementary, not contradictory, to renewable energy.
These frameworks reflect a shared understanding that Southeast Asia’s transition will not be identical to that of Europe or North America. It will be tailored to local realities, diverse energy mixes and economic starting points.
