ASEAN Needs Over USD 3 Trillion For Energy Transition By 2050

(MENAFN- Kuwait News Agency (KUNA)) KUALA LUMPUR, May 26 (KUNA) -- Malaysia's Deputy Prime Minister Fadillah Yusof said on Monday that the Association of Southeast Asian Nations (ASEAN) countries need over USD three trillion in investments by 2050 to meet energy transition goals, stressing the urgent need for a radical shift in financing strategies to ensure success in this vital sector.
Speaking at the opening session of the "Energy Transition in ASEAN: Enhancing Regional Cooperation" conference during the 46th ASEAN Summit in Kuala Lumpur, Fadillah, who also serves as Malaysia's Minister of Energy Transition and Water, highlighted that Malaysia alone requires more than USD 143 billion to achieve its renewable energy targets under its national energy transition roadmap.
Public funding alone is insufficient, he pointed out, urging governments in the region to create strong, enabling environments to draw in local and international private investments. This includes coordinated policy reforms and innovative financing tools such as blended finance and public guarantees to reduce early-stage project risks.
Fadillah also called for strengthening capital markets through green bonds, Islamic sukuk, and sustainability-linked loans to direct funds towards clean energy projects.
He underscored the importance of adopting carbon pricing that reflects the true cost of emissions as an incentive for low-carbon technologies.
Fadillah highlighted the critical role of digitalization in supporting the regional energy transition, citing smart grids, AI-based forecasting tools, and demand management systems to enhance the resilience and efficiency of ASEAN's energy systems.
Domestically, Fadillah noted Malaysia is aligning policies and financial frameworks to support the transition, emphasizing that competitiveness and climate ambition must go hand in hand in a trade-oriented country like Malaysia.
He also mentioned Malaysia's renewable energy supply program, which allows major companies to purchase power directly from private sector developers, creating a market-driven path to decarbonization.
Additionally, Malaysia's central bank-backed Low Carbon Transition Fund offers preferential financing to small and medium enterprises investing in clean technologies. (end)
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