As PETRONAS’ President and Group CEO and Chairman of Energy Asia, Tan Sri Tengku Muhammad Taufik Tengku Kamadjaja Aziz aptly stated in his opening remarks at the inaugural Energy Asia 2023, “The world cannot achieve net zero without Asia achieving net zero.” The region is emerging as a pivotal player in the global energy transition, holding the potential to reshape the world’s energy landscape.
Asia’s critical role stems from its vast size, economic clout, and technological capacity. However, its rapid economic growth, increasing living standards, and environmental challenges create an urgent need to transition to sustainable energy.
With the global spotlight on Asia, countries across the region are adopting diverse approaches to energy transition. Many are expected to lead the shift away from fossil fuels toward greener energy sources. This transformation is driven by growing environmental awareness, energy security priorities, and the economic benefits of green technologies.
Asia at the Forefront of the Energy Transition
Asia’s energy transition initiatives are diverse. China has set ambitious targets to become carbon neutral by 2060 and has seen a significant increase in wind and solar installations, with projections indicating it will have built approximately 1,300 gigawatts of wind and solar capacity by the end of 2024. The country is now on course to meet its 2030 climate goals with relative ease.
India is also making strides with its renewable energy projects. It has increased its renewable energy capacity by 175% since 2014, with solar energy capacity increasing 33-fold over the past decade. Japan has set a target to become carbon neutral by 2050, and its government is heavily investing in hydrogen as a clean energy source.
Indonesia is not far behind with plans to increase the renewable energy mix to 23% by 2025. Vietnam has been successful in implementing solar power projects, resulting in higher-than-expected renewable energy outputs.
Malaysia too, is making notable progress. In August 2023, the country launched Phase 1 of its National Energy Transition Roadmap (NETR), aimed at accelerating its energy transition. This roadmap supports the Twelfth Malaysia Plan (2021-2025) and outlines the country’s aspiration to achieve net-zero emissions by 2050. Recently, Malaysia updated its climate policy to align with its Nationally Determined Contributions (NDC) under the Paris Agreement. A comprehensive Climate Change Act is planned for early 2025 to help reduce greenhouse gas (GHG) emissions and adapt to climate change.
Malaysia’s national energy company PETRONAS has rolled out a robust Energy Transition Strategy, which prioritises emission reductions in core operations and substantial investments in renewables and low-carbon technologies, such as Carbon Capture and Storage (CCS). PETRONAS is targeting a 50% reduction in methane emissions while actively diversifying its energy mix to include solar, wind, and CCS technologies.
In collaboration with key players from the ASEAN energy sector, government agencies, and international organisations, it launched the ASEAN Energy Sector Methane Leadership Programme (MLP) 2.0.
MLP 2.0 strengthens emissions reduction targets and enhances coordination between businesses and governments supporting the Global Methane Pledge signed by over 150 countries, including Malaysia.
Under MLP 2.0, PETRONAS will be collaborating with Japan Organization for Metals and Energy Security (JOGMEC) to establish the Southeast Asia Methane Emissions Technology Evaluation Centre (METEC). The first of its kind in Southeast Asia, the centre will play a significant role in improving regional methane emissions management efforts by supporting experts to oversee measurement, monitoring, reporting and verification processes, as well as research and development initiatives.
Looking Ahead: Energy Asia 2025
The energy transition is about more than just technology – it is about leadership, partnerships, and a shared vision for a sustainable future. Energy Asia 2025 will serve as a pivotal platform, showcasing the region’s achievements and mapping the road ahead.
Regional energy companies and their collaborations through decarbonisation efforts like CCS, hydrogen, and renewable energy projects, are actively shaping the future. Supported by government-led policies, Asia is charting a course toward a greener, more resilient energy system.
The global energy transition is gathering speed, and Asia is not only participating, but is envisioned to lead the way. Continued collaboration, bold commitments, and a clear vision will ensure the region’s place as a leader in clean energy and emissions reduction.
The second edition of Energy Asia will convene in Kuala Lumpur from June 16-18, 2025, under the theme Delivering Asia’s Energy Transition. Organised by PETRONAS and CERAWeek (by S&P Global) as its Knowledge Partner, this event will feature high-level discussions among industry leaders, investors, and policymakers from across the energy ecosystem.
