Latest news with #EnergyTransitionMeetinginASEAN:FosteringRegionalCooperation
The Sun
26-05-2025
- Business
- The Sun
ASEAN needs over US$3 trillion investment for energy transition by 2050
KUALA LUMPUR: Malaysia has urged ASEAN member states to embrace a fundamental shift in financing strategies to achieve the region's ambitious energy transition goals, with cumulative investments estimated at over US$3 trillion by 2050. Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia alone requires more than US$143 billion to meet its renewable energy (RE) targets under the National Energy Transition Roadmap. 'These figures underscore a simple but profound truth: public finance alone is insufficient. 'Therefore, it is imperative for governments across the region to create a robust enabling environment that catalyses private investment, both domestic and international, through coordinated policy reform and innovative financial instruments,' he said. In his keynote address at the 'Energy Transition Meeting in ASEAN: Fostering Regional Cooperation' conference here today, Fadillah, who is also the Energy Transition and Water Transformation Minister, said these instruments include blended finance mechanisms and public guarantees to de-risk early-stage RE projects. He added that ASEAN must also strengthen its capital markets through the issuance of green bonds, Islamic finance instruments such as sukuk, and sustainability-linked loans to channel capital into clean energy projects. 'Carbon pricing frameworks that reflect the real cost of emissions are essential to incentivise the shift toward low-carbon technologies. 'Digitalisation of the energy ecosystem, including smart grids, artificial intelligence-based forecasting tools, and demand-side management systems, will play a crucial role in enhancing system flexibility and efficiency across the region,' he said. At the national level, Fadillah said Malaysia has already begun aligning its policies and financing landscape to support this transformation. 'As a trading nation, we (Malaysia) recognise that competitiveness and climate ambition must go hand in hand. The Corporate Renewable Energy Supply Scheme enables large electricity consumers to directly source RE from private developers, offering a market-driven route to decarbonisation. 'The Low Carbon Energy Generation Programme introduces a Contract-for-Difference mechanism to improve the bankability of renewable projects and offer price certainty for investors, while Bank Negara Malaysia's Low Carbon Transition Facility provides concessional financing to small and medium-sized enterprises investing in clean technologies,' he said. Fadillah emphasised that efforts to enable a region-wide energy transition must be matched by regional alignment. 'A well-integrated ASEAN energy market, supported by common investment frameworks, harmonised technical standards, and coordinated green finance mechanisms, will unlock economies of scale and reduce capital costs,' he said.
The Sun
26-05-2025
- Business
- The Sun
ASEAN needs over US$3 trillion investment for energy transition
KUALA LUMPUR: Malaysia has urged ASEAN member states to embrace a fundamental shift in financing strategies to achieve the region's ambitious energy transition goals, with cumulative investments estimated at over US$3 trillion by 2050. Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia alone requires more than US$143 billion to meet its renewable energy (RE) targets under the National Energy Transition Roadmap. 'These figures underscore a simple but profound truth: public finance alone is insufficient. 'Therefore, it is imperative for governments across the region to create a robust enabling environment that catalyses private investment, both domestic and international, through coordinated policy reform and innovative financial instruments,' he said. In his keynote address at the 'Energy Transition Meeting in ASEAN: Fostering Regional Cooperation' conference here today, Fadillah, who is also the Energy Transition and Water Transformation Minister, said these instruments include blended finance mechanisms and public guarantees to de-risk early-stage RE projects. He added that ASEAN must also strengthen its capital markets through the issuance of green bonds, Islamic finance instruments such as sukuk, and sustainability-linked loans to channel capital into clean energy projects. 'Carbon pricing frameworks that reflect the real cost of emissions are essential to incentivise the shift toward low-carbon technologies. 'Digitalisation of the energy ecosystem, including smart grids, artificial intelligence-based forecasting tools, and demand-side management systems, will play a crucial role in enhancing system flexibility and efficiency across the region,' he said. At the national level, Fadillah said Malaysia has already begun aligning its policies and financing landscape to support this transformation. 'As a trading nation, we (Malaysia) recognise that competitiveness and climate ambition must go hand in hand. The Corporate Renewable Energy Supply Scheme enables large electricity consumers to directly source RE from private developers, offering a market-driven route to decarbonisation. 'The Low Carbon Energy Generation Programme introduces a Contract-for-Difference mechanism to improve the bankability of renewable projects and offer price certainty for investors, while Bank Negara Malaysia's Low Carbon Transition Facility provides concessional financing to small and medium-sized enterprises investing in clean technologies,' he said. Fadillah emphasised that efforts to enable a region-wide energy transition must be matched by regional alignment. 'A well-integrated ASEAN energy market, supported by common investment frameworks, harmonised technical standards, and coordinated green finance mechanisms, will unlock economies of scale and reduce capital costs,' he said.
The Sun
26-05-2025
- Business
- The Sun
Malaysia urges ASEAN unity for fair, inclusive energy transition
KUALA LUMPUR: Malaysia, as ASEAN Chair for 2025, has called on member states to step up regional cooperation to drive a fair, secure and inclusive energy transition, in line with climate goals and the region's growing energy demand. Deputy Prime Minister Datuk Seri Fadillah Yusof said the region's energy future must be grounded in unity, practical frameworks and mutual benefits. 'As Chair of ASEAN in 2025, Malaysia is deeply committed to promoting dialogue, building consensus and advancing regional frameworks that will power a cleaner, more secure and more inclusive energy future,' he said. He said this in his keynote address at the Energy Transition Meeting in ASEAN: Fostering Regional Cooperation organised by MyDigital here today. Fadillah, who is also the Minister of Energy Transition and Water Transformation, said ASEAN's energy demand has been growing faster than the global average, at three per cent annually, and is projected to rise by more than 60 per cent by 2040, presenting both opportunities and challenges. 'This growth, while reflective of our economic dynamism, presents us with a pressing dilemma: how do we continue powering our progress while safeguarding environmental sustainability and ensuring affordability for all? 'The answer lies in a managed, inclusive and well-coordinated energy transition, one that reflects the diversity of ASEAN while advancing a common vision,' he said. He highlighted ASEAN's progress under the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II, noting that renewable energy now makes up 34 per cent of installed electricity capacity, though its share in total primary energy supply remains at 16 per cent. 'Vietnam has rapidly expanded its solar capacity by more than 20GW since 2019; Indonesia is anchoring a Just Energy Transition Partnership to transition to cleaner energy sources with at least USD20 billion of support; (and) Thailand has adopted a Bio-Circular-Green Economy model to align sustainability with productivity,' he said. He also reaffirmed Malaysia's target of 70 per cent renewables in installed capacity by 2050 under the National Energy Transition Roadmap (NETR). Fadillah said regional integration was crucial, especially through mechanisms like the ASEAN Power Grid (APG), which aims to unlock cross-border power trade, leveraging the region's uneven distribution of renewable resources. 'The Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) is a prime example of how multilateral electricity trade is possible, allowing countries to work together to deliver renewable electricity across borders. 'From a national perspective, Malaysia commenced its first cross-border green electricity trade with Singapore through ENEGEM (Energy Exchange Malaysia). In just 148 days, over 107 TWh of green electricity generated from solar and hydro has been successfully delivered across the Causeway to Singapore,' he added. He stressed the need to harmonise green attributes such as Renewable Energy Certificates (RECs) across the region to boost investor confidence and prevent double-counting. 'Malaysia strongly supports an ASEAN-wide framework for green attributes that aligns with international best practices,' he said, adding that this will be one of the priorities under Malaysia's ASEAN Chairmanship. Fadillah said Malaysia would work through existing ASEAN platforms and newer partnerships like the ASEAN-Gulf Cooperation Council and ASEAN-China dialogues, noting that the Gulf states bring substantial expertise in utility-scale renewables while China offers technology and financing. 'ASEAN must negotiate from a position of unity. A coordinated regional stance enhances our bargaining power, attracts large-scale investments and sends a strong signal that ASEAN is open for green business,' he said.
Barnama
26-05-2025
- Business
- Barnama
Malaysia Urges ASEAN Unity For Fair, Inclusive Energy Transition
GENERAL KUALA LUMPUR, May 26 (Bernama) -- Malaysia, as ASEAN Chair for 2025, has called on member states to step up regional cooperation to drive a fair, secure and inclusive energy transition, in line with climate goals and the region's growing energy demand. Deputy Prime Minister Datuk Seri Fadillah Yusof said the region's energy future must be grounded in unity, practical frameworks and mutual benefits. 'As Chair of ASEAN in 2025, Malaysia is deeply committed to promoting dialogue, building consensus and advancing regional frameworks that will power a cleaner, more secure and more inclusive energy future,' he said. He said this in his keynote address at the Energy Transition Meeting in ASEAN: Fostering Regional Cooperation organised by MyDigital here today. Fadillah, who is also the Minister of Energy Transition and Water Transformation, said ASEAN's energy demand has been growing faster than the global average, at three per cent annually, and is projected to rise by more than 60 per cent by 2040, presenting both opportunities and challenges. "This growth, while reflective of our economic dynamism, presents us with a pressing dilemma: how do we continue powering our progress while safeguarding environmental sustainability and ensuring affordability for all? 'The answer lies in a managed, inclusive and well-coordinated energy transition, one that reflects the diversity of ASEAN while advancing a common vision,' he said. He highlighted ASEAN's progress under the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II, noting that renewable energy now makes up 34 per cent of installed electricity capacity, though its share in total primary energy supply remains at 16 per cent. 'Vietnam has rapidly expanded its solar capacity by more than 20GW since 2019; Indonesia is anchoring a Just Energy Transition Partnership to transition to cleaner energy sources with at least USD20 billion of support; (and) Thailand has adopted a Bio-Circular-Green Economy model to align sustainability with productivity,' he said.
