JAKARTA: Malaysia has called on ASEAN member states to take bold, collective action to close the financing gap in the region’s clean energy transition, emphasising the need for trillions of dollars to avoid jeopardising climate and development goals.
Speaking at a regional energy forum here on Friday, Malaysia’s Permanent Representative to ASEAN, Datin Sarah Al Bakri Devadason, stressed the urgency of moving away from fossil fuels while ensuring environmental and social inclusivity.
“Access to clean, affordable, and reliable energy is not merely about powering homes or industries. It is about protecting the environment and the rights of future generations,” she said.
Citing the ASEAN Centre for Energy (ACE), she said regional energy demand could rise by over 60 per cent by 2040, and warned that relying on conventional sources risks derailing climate goals.
According to Sarah, ASEAN has committed to increasing the share of renewable energy to 23 per cent of total primary energy supply by 2025.
However, a study by the International Renewable Energy Agency (IRENA) estimated that ASEAN will need around US$29.4 trillion by 2050 to fully transition to renewables and most of which remains unfunded, she noted.
She also highlighted the ASEAN Taxonomy for Sustainable Finance (ATSF), updated in March 2024, as a key tool for attracting sustainable investment.
The taxonomy is the first in the world to classify energy transition funding through both green and amber categories.
Sarah reaffirmed Malaysia’s commitment, as ASEAN Chair, to advance cross-sector collaboration and innovative financing to drive inclusive and sustainable energy transformation.
“Together, we can build an ASEAN that is not only economically resilient, but also environmentally responsible and socially inclusive,” she concluded.
The event, co-organised with ACE, was attended by representatives from ASEAN member states, the diplomatic corps, financial institutions, civil society, and industry experts.
