Asia

Asia is the world’s fastest-growing and most economically dynamic region — home to half the global population and more than half of the world’s energy consumption. Much of this is powered by coal: China, Japan, South Korea, and Indonesia alone accounted for 57% of the world's coal-fired capacity in 2024, and Asian countries constitute the top 10 nations responsible for over 90% of operating coal power capacity and 99% of all new additions. 

Heavy dependence on imported fossil fuels — oil, coal, and liquefied natural gas (LNG) — has continued to expose Asian economies to recurring commodity price volatility, balance of payment pressures, and energy supply insecurity. Global conflicts, from the Russia-Ukraine war in 2022 to the Iran conflict in 2026, have significantly contributed to energy price spikes, with rippling effects on inflation, interest rates, trade balances, and gross domestic product (GDP) growth across the region.

Yet, Asia also possesses vast untapped solar and wind resources, and the pace of clean energy investment is accelerating across key markets. Supply chain investment opportunities in solar photovoltaic (PV) and offshore wind across the Asia Pacific are projected to reach USD1.1 trillion by 2050. Renewable energy costs have consistently declined over the past two decades, and faster coal phaseouts and scaled-up renewables deployment offer regional economies an affordable pathway to long-term energy and economic security.

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