By Anshari Rahman, Dale Hardcastle, Yukiko Tsukamoto, Spencer Low, Wan Thonh Chow, Justin Ma, Franziska Zimmermann, Gwyneth Fries, and Sanchita Shandilya
Over the past decade, ambition has soared, awareness has grown, and actions have begun, yet the results remain uneven. And with just five years left until 2030, SEA is not on track to meet its climate pledges and new pathways for change are needed.
Recent trade and economic uncertainty create an opportunity for SEA to accelerate its green transition by increasing energy security, presenting investable opportunities, and opening the door to build on more regional collaboration.
This report explores how SEA can move into the next chapter of its green transition – one where decarbonisation unlocks value through economic competitiveness, job growth, and long-term energy security.
In this report, we call for a systems-based approach to solve interconnected challenges across power, transport, and land use. To make the report actionable for leaders, we also identify three high-impact solutions:
- Scaling the sustainable bioeconomy. The global bioeconomy is projected to reach US$30 trillion by 2050, with SEA positioned to capture a significant share due to its rich biodiversity and agricultural base. The bioeconomy generates significant economic value, 25 per cent to 30 per cent of its jobs – and 30 per cent of its emissions.
- Modernising domestic and regional grids. The region’s power grid is not equipped for renewable energy and requires significant government intervention and investment to become fit for the future. However, modernising and expanding the power grid would pay off, generating approximately 200,000 jobs in 2030 and US$25 billion in GDP contributions.
- Accelerating the electric vehicle (EV) ecosystem. In SEA, internal combustion engine (ICE) vehicles account for more than 80 per cent of vehicles produced, creating economic risk as demand for EVs grows. The region could follow a dual strategy building both production and adoption, leveraging regional synergies to build supply chains and decarbonise transport. By prioritising these solutions, SEA could create US$120 billion in new economic value and generate up to 900,000 jobs in 2030- while significantly shrinking the gap between the region’s current emissions trajectory and its 2030 climate ambitions.
This report also highlights the urgent need for enabling solutions, such as expanding access to climate and transition finance, scaling carbon markets, and harnessing green artificial intelligence (AI). It also introduces a new lens compared to years past: the potential for collaboration between SEA and the wider Asia-Pacific region. Working together, we can amplify the region’s impact and ultimately unlock the full potential of the green economy.
Written in collaboration with
