Are clean energy targets globally set achievable by Southeast Asia?
Subtitle: Earth Day 2023 marks a significant milestone in the global environmental movement, highlighting the region's renewable energy advancements and obstacles.
Celebrated annually on 22 April, Earth Day serves as a unifying force, encouraging countries to collaborate on renewable energy and holding governments accountable for their environmental promises. This year, Earth Day marks the 55th anniversary of the birth of the modern environmental movement, a movement that started in the United States and spread worldwide.
However, a new study published this month by Climate Analytics raises concerns about the enforceability and impact of decarbonisation pledges, which are currently voluntary. The report suggests that countries, such as Malaysia and Thailand, need to accelerate their decarbonisation efforts and transition away from fossil fuels to meet global climate goals.
Malaysia and Thailand have the least renewable energy capacity among their neighbours. As of 2023, Malaysia's wind and solar pipeline stands at 2GW, while Thailand's is 3GW. In contrast, Vietnam has made significant strides in strengthening its energy security by allocating US$136.3 billion by 2030. Solar power is set to become Vietnam's leading energy source, overtaking coal.
Meanwhile, Singapore, the world's most fossil fuel-dependent nation, uses gas for 95% of its energy. Despite its small size and limited domestic energy resources, Singapore has managed to achieve the 16% annual increase in renewables capacity needed for the global renewable energy pledge.
Indonesia, another major player in the region, faces significant hurdles in its energy transition, continuing to build new coal plants to power off-grid industrial activities. The Philippines, on the other hand, lags behind in its deployment of renewable energy, according to the Climate Analytics report. It is the only country in Southeast Asia that did not increase the share of renewable energy in its power mix between 2015 and 2023.
The region, in general, has not been growing at the minimum 16.4% rate of increase in renewables capacity needed to meet the global target through the end of the decade. This is a concern, as countries at the COP28 climate talks recently pledged to triple renewable energy deployment by 2030.
Notably, Singapore is advancing its renewable energy and decarbonization efforts by promoting the use of hydrotreated vegetable oil (HVO), a sustainable bio-based fuel compatible with existing diesel infrastructure. This move aligns with Singapore's Green Data Centre Roadmap and 2050 net-zero goals, supported by a push for clear regulatory frameworks and market development to enable HVO adoption.
However, challenges persist. Large renewables firms have pulled back from the Vietnam market and have not announced plans to return. Indonesia's climate and energy minister has openly expressed doubts about the relevance of certain international agreements, such as the Joint Implementation and Clean Development Mechanism Projects (JETP) and the Paris Agreement, for Indonesia given the disparity in emissions between developing and developed nations.
The region's approach to renewable energy and climate change is varied, with some countries, like the Philippines, Thailand, Malaysia, and Singapore, endorsing international pacts, while others, like Indonesia and Vietnam, have yet to do so. This diversity in approach presents both opportunities and challenges for the region's renewable energy landscape.
As the world continues to grapple with climate change, Southeast Asia has an opportunity to support its neighbours and position itself as a climate leader that aligns with global efforts to limit warming to 1.5°C. The region's progress in renewable energy is a step in the right direction, but more needs to be done to meet global climate goals.
