Closing the Gap Between Commitments and Climate Actions in Southeast Asia

In light of climate change mitigation, countries are urged to take decisive actions in emission reduction and energy transition. Years after the Paris Agreement, Southeast Asian countries still struggle to bridge the gap between their commitments (Nationally Determined Contributions, or NDCs) and actions on the ground. A report by Bain & Company, GenZero, Standard Chartered, and Temasek explores the state, challenges, and opportunities for climate actions in Southeast Asia.

Climate Actions in Southeast Asia

Southeast Asian countries produce approximately 7% of global emissions. Although this number is significantly smaller than that in the Global North, the report predicts that emissions will increase rapidly without interventions. To meet the NDC targets, the region must reduce emissions by roughly 32% (2.4 GtCO2e) by 2030.

At COP28, several countries renewed their climate and energy commitments. Cambodia and Malaysia, for instance, want to increase their national renewable energy shares. Meanwhile, Indonesia sought an early coal phase-out. The Philippines and Singapore made new climate funding commitments and initiatives.

However, the report found that while significant progress has been made in identifying what needs to be done, Southeast Asian countries still lack actions to make those commitments a reality. Insufficient regulations and incentives are cited as the primary reasons hindering climate action implementation in Southeast Asia.

Opportunities and Investable Ideas

To support climate actions in Southeast Asia, countries must identify and leverage possible opportunities in the form of technological innovations and emission reduction solutions. The report emphasizes prioritizing investments that can deliver immediate impact within 12 months. Ideally, these opportunities can bring an abatement potential of more than 100 MtCO2e, which accounts for 3% of SEA emissions.

After assessing around 100 investable ideas for SEA, the report identifies 13 top ideas across four landscapes:

Nature and Agriculture: regenerative agriculture, alternate wetting and drying, precision agriculture, forest conservation, and peatlands conservation.
Power: utility-scale solar/wind, transmission and distribution infrastructure expansion, captive solar, and vPPAs and bilateral connections.
Transport: electric passenger vehicles and charging infrastructure and agricultural waste stream for biofuel production.
Buildings: energy efficiency improvements for data centers and energy efficiency improvements for buildings.

Accelerating investments in these areas will require policies and incentives, innovative finance mechanisms, scaled-up corporate investments, pilot developments, and regional collaboration in Southeast Asia.

Collective Actions Required

2023 was dubbed the hottest year since 1980. This underscores the urgency of making energy transition efforts and pushing for climate actions in Southeast Asia.

All stakeholders must take action to reach the 2030 emission reduction target. The government in each country must push forward the development of policy frameworks that center around inclusive and just transition and green incentives for industry players. Meanwhile, corporations and investors must continue to create opportunities for decarbonization efforts and invest in sustainable transitions for all.

Read the full report here.

Editor: Nazalea Kusuma

Kresentia Madina

Reporter at Green Network Asia | Website | + posts

Madina is the Assistant Manager of Stakeholder Engagement at Green Network Asia. She holds a bachelor’s degree in English Studies from Universitas Indonesia. As part of the GNA In-House Team, she supports the organization's multi-stakeholder engagement across international organizations, governments, businesses, civil society, and grassroots communities through digital publications, events, capacity building, and research.