Asia has solidified its influence as a key linchpin in the global energy dynamic. It has turned itself around from the leading per capita producer of carbon dioxide between 2000 and 2024 to a booming hub of clean energy development. This major change comes at an important time. The region is at a crossroads, confronting grievous environmental legacies, yet striving mightily to tackle tomorrow’s greater energy needs with cleaner, socially responsible technologies.
As we move into 2024, renewable power sources are far ahead. Today, they make up more than half of Asia’s total power capacity. This extraordinary accomplishment highlights Asia’s leadership with a rapid transition to widespread adoption of renewable energy technology and promoting sustainable economic development. The region continues to be the world’s center of energy transition activity, with China at the head of that race.
Forecasts show that by 2025, China will represent 67% of the region’s total energy consumption and energy demand. The country has become a global leader in green hydrogen capacity, making headway into the future of a sustainable energy economy. India is rapidly positioning itself as a powerful player in the green hydrogen market. It jointly boasts the highest pipeline capacity for this emerging clean energy source.
In the future, renewable power is estimated to comprise 72% of total power capacity in Asia by 2035. In any event, China is on track to reach a noteworthy milestone. By this October, the country will produce more than half of the energy it receives from renewables. China currently ranks first in the world in green hydrogen. It further leads the regional scene with the highest market share of electric vehicles (EVs), green hydrogen production and renewable refinery capacities.
Although such developments create an exciting picture for clean energy across Asia, more challenges persist. Coal continues to play a pivotal role in energy security across most Asian markets. According to modeling in their IRP, it will continue to be the Southeast’s most abundant, economic single source of power through 2025. With upcoming thermal power capacity still largely expected to outweigh decommissioning efforts, this makes the transition away from dirtier fossil fuels to cleaner alternatives more difficult.
India and Southeast Asia are rapidly emerging as fast followers in the clean energy transition. Still, experts are cautioning that Asia’s renewable energy and net-zero targets are insufficient. They might even fail to achieve the NDCs promised under the Paris Agreement of 2015. This raises concerns about whether the ambitious plans are aligned with the necessary actions needed to combat climate change effectively.