Energy Shift Southeast Asia calls on Southeast Asian countries to take this moment of crisis as a turning point to rapidly reduce fossil fuel dependence, halt further fossil fuel expansion plans, and accelerate just transition to renewable energy.
The ongoing Middle East conflict revealed Southeast Asia’s structural vulnerability to fossil fuels. The region remains exposed to price shocks and supply disruptions beyond its control, triggering a cascading domestic energy crisis.
Across the region, governments are forced into short-term, costly responses. Malaysia, Indonesia, and Thailand continue to shoulder fuel subsidies, raising serious concerns around long-term fiscal sustainability and rising public debt. Meanwhile, Vietnam has been forced to remove taxes to tame soaring prices, and the Philippines has declared a national energy emergency due to supply shortages. In all cases, it is ordinary citizens who bear the brunt of skyrocketing oil costs.
At the same time, Southeast Asia is being positioned as a major liquefied natural gas (LNG) hub. Since 2016, the region has commissioned 33.2 GW of gas-fired power plants and is currently planning a massive expansion of 136 GW in additional gas capacity, alongside 10.1 mtpa of export capacity, and 35.1 mtpa of import capacity.
This continued expansion stands in stark contradiction to the region’s growing momentum in renewable energy. A 2024 report shows that the planned renewable energy capacity across Southeast Asia reached 398 GW with USD 52.8 billion in investment, proving that transitioning to renewable energy sources is not only possible but already underway.
These figures demonstrate a clear contradiction. Southeast Asia is capable of renewable leadership, yet continued fossil expansion risks locking economies into long-term fuel import dependence and exposure to volatile global markets.
As ASEAN Leaders prepare to convene in the Philippines next month to address regional food and energy security, the region faces a critical choice. This moment demands decisive leadership. The upcoming Summit represents a crucial opportunity for leaders to finally pivot away from fossil fuels and commit to a rapid and just transition toward the region’s vast, untapped renewable potential.
We also urge ASEAN governments to accelerate a shift to a just and equitable mass transport system to reduce dependence on imported oil, and build a resilient transport system that protects the transportation sector from fuel shocks.
In an increasingly uncertain time, transitioning to renewable energy is the most ready and viable pathway to energy security, economic resilience, and long-term stability for the region.