SINGAPORE — Southeast Asia must increase clean energy investments to US$190 billion (S$250 billion) by 2035, nearly five times the current amount, to meet its climate targets, according to the International Energy Agency (IEA) on October 22.

The IEA's report emphasizes that boosting energy investments should be paired with strategies to cut emissions from the region's relatively new coal-fired power plants. It noted that rapid economic growth could create challenges for energy security and climate objectives.

However, efforts to phase out coal power in emerging markets, supported by wealthy Western nations, are experiencing delays after a July deadline passed without an agreement on the early closure of an Indonesian pilot project.

Electricity demand in Southeast Asia is projected to grow at an annual rate of four percent in the coming years, with renewable energy sources like wind, solar, modern bioenergy, and geothermal power expected to account for more than a third of this growth by 2035, as per the IEA report.

Despite this, the report indicates that these measures will not be sufficient to curb the region's energy-related carbon dioxide (CO2) emissions, which are expected to rise by 35 percent between now and mid-century.

IEA Executive Director Fatih Birol stated, "Clean energy technologies are not advancing quickly enough, and the ongoing heavy dependence on fossil fuel imports is leaving countries vulnerable to future risks."

The report also highlights that Southeast Asia attracts only two percent of global clean energy investments, despite contributing six percent to global GDP, five percent to global energy demand, and housing nine percent of the world’s population.

To support a higher share of variable renewable energy, the region's power grids will need to be expanded and modernized, requiring annual investments to nearly double to around US$30 billion by 2035, according to the IEA.

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