Southeast Asia is one of the hotspots for global energy development. This report by Climate Analytics, supported by Friedrich-Ebert-Stiftung, looks into the need to stop the expansion of coal and phasing out coal for power generation to avoid the catastrophic climate change impacts that threaten the region.

Together with China and India, Southeast Asia will account for most of the growing energy demand within the next decades. That demand will be fuelled by economic growth, especially in industrial manufacturing, as well as transport, urbanisation and population expansion.

So far, this increase in demand has been met mostly through the expansion of coal-fired power plants. This stands in stark contrast to the 1.5˚C temperature goal set in the Paris Agreement on climate change and which cites coal-fired power plants as one of the main contributors to the CO2 levels. The uptake of renewable energies would contribute towards limiting global warming. It would also make sense from an economic perspective due to the falling prices for solar and wind energy as well as their co-benefits for sustainable development.

An important aspect of accelerating the energy transition is the flow of investment. There is increasing commitment of financial institutions in Europe and multilateral development banks to divest from fossil fuels, not least because investment in coal plants, mines and other fossil fuel-related infrastructure could soon become stranded assets if they have to shut down before the end of their life cycle.

Against this background, the Friedrich-Ebert-Stiftung’s (FES) regional project on climate and energy in Asia decided to take a closer look at the investment landscape of fossil fuels, especially coal, in Southeast Asia: Which actors finance the ongoing expansion of coal-fired power plants, and can Southeast Asia continue shielding itself against the global trend away from coal? How could energy and investment scenarios look like that if aligned with the Paris Agreement, and what would it take to make this shift?

The purpose of this study is to provide an overview of the situation, the trends as well as fossil fuel investment projections and the need to shift investment towards clean energy. Along with those trends, we analyse the investment environment as well as funding sources of investment in the power sector. This includes the principal stakeholders—government, private sector and civil society—and their role in current and potential future investment patterns and flows in Southeast Asia.

Submission to the Australian Treasury consultation on the Petroleum Resource Rent Tax

As the gas industry in Australia has grown exponentially, the profit taxes it pays to the government have proportionally plummeted, presenting an opportunity to change this regime. Here, we respond to the Australian Government Treasury consultation on the Petroleum Resource Rent Tax (PRRT) – anti-avoidance provisions and clarifying treatment of ‘exploration’ and Mining, Quarrying or Prospecting Rights.

Wind and solar benchmarks for a 1.5°C world

This report presents a detailed methodology for determining the amount of wind and solar capacity that is required for a country to align with the Paris Agreement’s 1.5°C temperature goal. While the focus of the report is the method, it includes illustrative benchmarks for Brazil, China, India, Indonesia, Germany, South Africa.

A 1.5°C future is possible: getting fossil fuels out of the Philippine power sector

The Philippines is also one of the fastest-growing developing countries: poverty is in decline, access to energy is rising and, with that, demand for energy services. However, fossil fuels still dominate the energy system, accounting for 78% of power generation in 2022. This report sets out what the Philippines government needs to do to get the country’s power sector onto a 1.5˚C compatible emissions pathway, replacing fossil fuels with renewable energy.

About us

Decarbonisation targets and 1.5℃ pathways

Comment

Shifting investment away from fossil fuels in Southeast Asia

Publications

What good looks like: G7 climate policy 2024 update

Climate justice and loss and damage: perspectives from the global south

Tripling renewables by 2030: interpreting the global goal at the regional level

Submission to the Australian Treasury consultation on the Petroleum Resource Rent Tax

COP28 initiatives will only reduce emissions if followed through

Unabated: the Carbon Capture and Storage 86 billion tonne carbon bomb aimed at derailing a fossil phase-out

No change to warming as fossil fuel endgame brings focus onto false solutions

Submission on Australia's future gas strategy

When will global greenhouse gas emissions peak?

Wind and solar benchmarks for a 1.5°C world

A 1.5°C future is possible: getting fossil fuels out of the Philippine power sector

State of Climate Action 2023