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The report argues that ASEAN's data centre industry requires a more diverse range of corporate renewable procurement options and stronger national sustainability frameworks to ensure sustainable growth. It evaluates various mechanisms—such as Power Purchase Agreements (PPAs), green tariffs, and Renewable Energy Certificates (RECs)—noting that limited availability of these options, particularly in countries like Indonesia, hinders investment. The text emphasizes that national frameworks are essential for managing energy transition risks and improving data transparency, as international standards are not always tailored to regional needs.

The report examines the energy demands of data centres in ASEAN, particularly those driven by AI, and argues that a dual approach of increasing solar and wind power procurement and enhancing energy efficiency is essential. It highlights that current grid emission targets in key hubs are insufficient and suggests that at least 30% of electricity demand in five ASEAN data centre hubs could be met by wind and solar by 2030 without immediate battery storage. The document emphasizes the critical role of cooling systems in tropical climates and the potential for software optimisation to reduce energy consumption.

The report examines the surge in data centre development in Southeast Asia, highlighting how increasing electricity demand—particularly in Malaysia, Indonesia, and the Philippines—threatens climate targets due to reliance on fossil-fuel-dominated grids. It argues that without significant investment in solar and wind energy and improved energy efficiency, the digital boom will lead to a substantial rise in greenhouse gas emissions.

The report highlights that data centres in ASEAN could account for 2% to 30% of national power demand by 2030, risking a significant increase in emissions, particularly in Malaysia, Indonesia, and the Philippines. It argues that approximately 30% of this demand can be met by solar and wind via grids without battery storage. The document advocates for more accessible corporate Power Purchase Agreements (PPAs), national sustainability frameworks, and advanced cooling technologies to ensure the sector's growth does not derail regional decarbonisation targets.

The document analyzes the competitive landscape of green investment in Southeast Asia, highlighting China as the leading public investor in clean energy between 2013 and 2023. It details the specific technological strengths of investor nations—such as Japan's lead in geothermal and solar and China's dominance in wind and hydropower—while examining the strategic frameworks used, including China's Belt and Road Initiative and Japan's Asia Zero Emissions Community. The report also notes significant financing gaps in the region, where annual renewable investments of USD 8 billion fell far short of the USD 27 billion required to meet 2025 targets.

The IMO's new Net-Zero Framework is criticized as a 'defeat for the climate' because it replaces a universal carbon levy with a hybrid fuel standard and weak carbon pricing. The author contends that the scheme will only reduce emissions by about 10% by 2030—half of the IMO's own base target—and will generate insufficient revenue ($11-12 billion annually) to support the transition to zero-emission fuels, which requires $12-24 billion per year.

The report argues that the ASEAN Power Grid (APG) can unlock significant renewable energy potential and enhance energy security by connecting resource-rich countries with high-demand markets. It highlights specific planned solar and wind projects, the role of the ASEAN Interconnection Master Plan Study (AIMS), and the potential for 30 GW of additional renewable capacity to generate 109 TWh of electricity and create 182,000 jobs.

ASEAN electricity demand grew by approximately 50% between 2013 and 2023 and is projected to rise by up to 41% by 2030. While the IEA's Announced Pledges Scenario (APS) targets 100,000 km of transmission line expansion for Southeast Asia between 2021 and 2030, the combined plans of Indonesia, Viet Nam, Thailand, and the Philippines total 45,078 km, covering only about 45% of that target. The document argues that grid planning must shift from merely meeting peak demand to managing the intermittency of wind and solar power, which saw cost reductions of 55% and 85% respectively in the decade to 2020.

The report argues that ASEAN's transmission grid expansion must roughly double to align with IEA pathways, as current national plans for Indonesia, Viet Nam, the Philippines, and Thailand cover only about 45% of the required expansion. It highlights that 30 GW of solar and wind potential is located along planned interconnection routes in countries like Indonesia, Malaysia, Cambodia, and Brunei. To support this transition, the report proposes a six-pillar framework for future-ready grid planning—including smart modernisation, strategic expansion, and market reforms—and suggests learning from the integrated power systems of Europe and Southern Africa to move from bilateral to multilateral power trade.

The report outlines the necessity for ASEAN countries to shift from reactive grid expansion to proactive system transformation to support variable renewable energy. It proposes a six-pillar framework for future-ready grid planning—covering smart modernisation, strategic expansion, flexibility, regional integration, regulatory reform, and sustainable finance—and draws comparative lessons from the integrated power systems of Europe and Southern Africa to advocate for a more connected and resilient regional market.

The report examines the need for grid modernisation and policy alignment in ASEAN to support the transition to renewables. It highlights the current dominance of fossil fuels, the risk of curtailment seen in Vietnam, and the potential of clean flexibility options such as pumped hydro, battery energy storage systems (BESS), and demand-side management (DSM) to ensure grid stability and enable cross-border energy sharing.

The paper argues that Colombia's previous price-based renewable energy auctions failed to consider socio-economic factors, leading to social conflict and project cancellations, particularly in La Guajira. It recommends two main pathways for the new framework: enhancing community engagement and benefit sharing for large-scale projects through stricter qualification requirements and multicriteria award mechanisms, and scaling up energy communities via a reserved auction quota (adhesion process) and a dedicated support agency to prevent 'community washing'.

In 2024, global coal power capacity increased by 18.8 GW, as 44.1 GW was commissioned and 25.2 GW retired. While the EU27 saw a fourfold increase in retirements and the UK completed its coal phaseout, global progress was offset by significant expansion in China and India. China commissioned 30.5 GW (70% of the global total) and saw 94.5 GW in new construction starts. India recorded its highest-ever level of new coal proposals at 38.4 GW. Conversely, coal proposals in OECD countries dropped from 142 in 2015 to five today, though retirements in these nations must triple to align with the Paris Agreement.

In 2024, fossil-powered capacity fell below half of the total electricity mix for the BRICS group, driven by renewable growth in China, India, and Brazil. However, new BRICS members—including Indonesia, Kazakhstan, and Nigeria—show a stark gap between net-zero pledges and action, currently constructing ten times more fossil fuel capacity (25 GW) than wind and utility-scale solar (2.3 GW). Chinese state-owned enterprises (SOEs) are central to this expansion, backing 62% of all power capacity under construction in new member geographies, with particularly high involvement in hydropower (93%) and coal (88%).

The document examines the gap between legal frameworks and the actual implementation of environmental procedural rights in Southeast Asia. It identifies challenges such as ambiguous disclosure requirements, lack of enforcement in public participation during Environmental Impact Assessments (EIAs), and barriers to judicial remedies. The brief highlights community-driven alternatives like counter-EIAs and the role of legal networks in strengthening the judiciary to protect vulnerable groups and environmental defenders.

The document outlines a comprehensive methodology for creating and assessing corporate transition plans in Vietnam's high-emission industries. It introduces a 'Five Hallmarks' framework for credible plans, provides sector-specific decarbonization criteria for steel, cement, and basic chemicals, and details the use of sustainability-linked financial instruments. It also presents a five-level classification system for financial institutions to evaluate the maturity and ambition of corporate transitions.

The report examines Indonesia's energy transition through a lens of national interest, highlighting a significant gap between the high investment needs for Net Zero Emissions (NZE) and the limited availability of domestic and international funding. It argues that foreign climate finance often arrives as debt rather than grants, potentially exacerbating Indonesia's chronic fiscal deficits and public debt. The document analyzes the capacity of the Indonesian banking sector to fund renewable energy projects, finding that while capital adequacy is generally high, systemic bottlenecks in foreign exchange liquidity and long-term stable funding persist. It also evaluates the nascent Indonesian carbon market, noting a lack of clear emission caps (PTBAE) and low carbon prices. The authors propose 'The Indonesian Way,' a strategy focusing on eight action paths, including the dekarbonization of transport and electricity, targeted subsidies, and the development of a domestic green manufacturing ecosystem to reduce technological dependency.

The report examines Indonesia's path toward net-zero emissions by 2060, highlighting a significant gap between current investment levels and the estimated annual need of USD 73–76 billion. It argues that foreign climate finance is often debt-heavy and unreliable, urging a shift toward domestic funding and structural reforms. The analysis covers the banking sector's limited capacity to finance renewable energy, the underperformance of the national carbon market, and the socioeconomic disparities in energy access. It proposes an "Indonesian Way" consisting of eight strategic actions, including targeted subsidies and the development of a domestic clean-tech ecosystem, to ensure a just and sovereign transition.

In 2024, global coal power reached a 20-year low in new capacity additions (44 GW), though the total global fleet still grew by 18.8 GW. While the EU27 saw a fourfold increase in decommissioned capacity and the UK closed its last coal plant, China saw record construction starts (94 GW) and India proposed record new capacity (38 GW). Russia has emerged as a leading developer of new coal projects, ranking fifth globally for development capacity, with plans focused on Siberia and the Far East to support energy demand and the domestic coal industry.

Southeast Asia is facing a potential surge in gas production, with 14 projects potentially reaching final investment decisions (FIDs) in 2025. If approved, these would add over 20 bcm/y of capacity, an 18% increase over current output. However, many projects have a history of delays, and the expansion threatens ecologically sensitive areas like the Coral Triangle and Mekong Delta. The report highlights contradictions between these extraction plans and the net-zero commitments of Malaysia, Indonesia, Vietnam, and Brunei.