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KUALA LUMPUR: The Asia Pacific region now accounts for 50 per cent of total global energy consumption – a significant increase that highlights the need for a just, equitable and sustainable energy transition.

In his keynote address at the opening of Energy Asia 2025 on Monday, Prime Minister Datuk Seri Anwar Ibrahim (pic) said that although regional energy demand continues to rise, the commitment to climate action remains firm.

“Energy demand in the Asia Pacific surged in 2024, and we are only beginning to gain momentum,” he told an audience of industry leaders, policymakers and energy experts from across the region and beyond.

He noted that Asia contributes 60 per cent of global carbon emissions, making it one of the largest emitters globally.

However, he stressed that this growth must not be used to justify delaying climate action.

He cited steps already taken by Asean nations, noting that eight out of ten member states have committed to net-zero carbon targets.

At the recent COP28 summit, Asean members also pledged to help triple global renewable energy capacity to 11,000 gigawatts by 2030.

Malaysia, he said, launched its National Energy Transition Roadmap (NETR) in 2023 to coordinate public and private efforts in meeting its Nationally Determined Contributions (NDCs) and building long-term energy resilience.

“This is not just a policy on paper, but a real roadmap outlining how Malaysia will move forward in a systematic and comprehensive way,” he said.

Anwar acknowledged that financing remains a major challenge in achieving this transition.

“How can we deliver a just and inclusive energy transition if sufficient investment is not flowing into clean energy projects?” he asked.

He revealed that Southeast Asia attracted only 2 per cent of total global clean energy investment in 2023, despite the region’s renewable energy potential.

He pointed out the region’s diverse resources: Vietnam with wind, Laos with hydropower, Malaysia with solar, and Indonesia with geothermal – yet investment levels remain low.

Malaysia, he said, is addressing this gap through policies such as the Corporate Renewable Energy Supply Scheme (CRESS) and the Green Technology Financing Scheme.

He also highlighted the need to strengthen electricity grid infrastructure to support renewable growth.

In this regard, he welcomed progress on the Asean Power Grid (APG) initiative, which has advanced with a new memorandum of understanding and a dedicated financing facility.

Tenaga Nasional Berhad (TNB), Malaysia’s national utility, has committed RM43 billion to grid upgrades, including the integration of artificial intelligence and battery energy storage systems.

However, Anwar noted that fossil fuels still account for nearly 80 per cent of global energy supply and said a balanced approach is essential.

He argued that decarbonisation efforts must be rooted in justice, warning that excluding vulnerable communities could worsen inequality.

He said energy security must go beyond stable supply to include social justice and equitable access.

“In Asia, energy security is a prerequisite for development. We must ensure energy is accessible, reliable and affordable,” he said.

To that end, he called for a pragmatic approach that combines renewables with low-carbon oil and gas solutions.

Asean, he added, has shown readiness to pursue this path through the Carbon Capture and Storage (CCS) Deployment Framework and Roadmap.

Malaysia has already passed the Carbon Capture, Utilisation and Storage Bill 2025 earlier this year.

Petronas plans to develop three CCS hubs in Malaysian offshore waters, supporting both the oil and gas sector and other hard-to-abate industries.

The Prime Minister said the initiative involves more than 10 international partners, including firms from Japan, South Korea, and global energy companies such as Total and Shell.

Petronas is also working with Eneos, Mitsubishi and JX Nippon to explore the transport and storage of CO₂ from Tokyo Bay to Malaysia.

He said CCS represents both a key decarbonisation method and a potential new source of revenue for the region.

Anwar urged stakeholders to bring forward practical and implementable solutions to advance Asia’s energy transition.

Energy Asia 2025, held at the Kuala Lumpur Convention Centre, is themed “Delivering Asia’s Energy Transition” and gathers energy leaders from across the region and worldwide.