Indeed, Asia is at the forefront of the world’s energy transition. Perhaps more importantly, it is positioning itself as an indispensable partner in the global transition to sustainable energy. The region is projected to remain the number one CO2 emitting region from 2000 to 2024. Now, it is making changes to quickly transform its energy landscape. Renewable energy capacity will increase by almost three-fifths, to 72% of total power capacity by 2035 across Asia. This change represents an extraordinary commitment to cleaner energy sources.
No country drives the state of the energy demand in Asia more than China. By 2025, it’s projected to account for a shocking 67% of the region’s consumption and demand. As the largest consumer of energy, China’s strategies and policies will have profound implications on the entire region’s transition efforts. The country currently dominates regional clean energy growth and leads globally in active green hydrogen capacity, showcasing its ambitions in renewable energy technologies.
In 2024, renewable power crossed the halfway line of Asia’s total installed power capacity. Together, this milestone raises the curtain on how quickly America is moving towards cleaner energy choices. China is on track to reach this milestone of getting over half of its electricity from renewables well before 2035. Coal remains incredibly entrenched in a number of these Asian markets. Experts predict it will continue to be the top single source of electricity in the region by 2025. This creates a double-edged sword as countries try to find their own ways in becoming more sustainable and clean while managing their current reliance on fossil fuels.
India, having quickly become a clean energy leader, has the largest pipeline capacity dedicated to green hydrogen. Even as it chases China in the clean energy race, India and Southeast Asia are rapidly emerging as new clean energy growth miracles. Together with their respective policies and investments, their actions signal a firm commitment to deploying and expanding new renewable energy capabilities.
The renewable energy potential in Asia is enormous. Leaders are emerging on all fronts, from solar to wind to hydrogen to biofuels. The region is on the cusp of an extraordinary change. Renewable energy policies, electricity consumption and demand trends, and energy storage deployment are more important than ever before. Yet, these places are quickly becoming popular targets for sprawl.
Asia’s energy landscape is rapidly shifting. Renewable refineries, biodiesel and renewable diesel production, and investments in carbon capture utilization and storage (CCUS) are just some of the projects that will be critical to the industry’s future. Hydrogen policies and the advancement of hydrogen capacity—by stage, type, and end use—are areas of interest as countries strive to meet their climate goals.