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Asia faces an energy paradox: Despite its vast potential in hydropower, solar, wind and geothermal resources and strong climate commitments to boosting its renewable energy capacity, the continent still relies on fossil fuels for nearly 80 per cent of its energy needs — a dependence driven by investment shortfalls, geopolitical tensions and infrastructure gaps, Malaysian Prime Minister Anwar Ibrahim warned at the Energy Asia 2025 conference in Kuala Lumpur, held from June 16-18, 2025.
The conference marked the second edition of Energy Asia, a thought leadership and business advocacy forum designed to propel the region’s net-zero ambitions. It was attended by experts, investors and policymakers representing 38 industries and 60 countries. Discussions focused on a range of topics, from enhancing energy security to boosting renewable energy adoption and fostering faster regional collaboration.
Technological innovations and supportive policy frameworks were also discussed. Key technologies discussed included carbon capture and storage, renewable energy sources, hydrogen and digital innovations.
Addressing the event, Anwar cautioned that rapid, unchecked transition risks deepening inequality, particularly for vulnerable communities with limited energy access. Instead, he called for a balanced approach in which carbon capture and storage plays a crucial role in complementing renewables while ensuring affordable access. He also called for a coherent financial architecture to inspire confidence and mobilise funding for renewable energy projects and emphasised the need to modernise grid infrastructure to improve efficiency.
Tengku Muhammad Taufik, President and Group Chief Executive Officer of Petroliam Nasional (PETRONAS), a Malaysian multinational oil and gas company, who chaired Energy Asia 2025, said more than 350 million people in Asia Pacific still have limited access to electricity and 150 million remain without access entirely. To meet its growing energy needs while transitioning towards carbon neutrality, Asia will require about $88.7 trillion in energy investment by 2050.
The region’s growing population and rapid artificial intelligence (AI)-driven industrialisation will drive energy demand to account for half of global consumption by 2050, with data centres doubling their usage to 945 terawatt-hours by 2030, representing over 20 per cent of global demand growth during this period. “We believe that there is no net zero without Asia achieving net zero,” he added.
The panellists acknowledged that coal remains a central energy source for many Asian economies, providing affordable and reliable power. However, the imperative to reduce carbon emissions is clear. Natural gas and LNG are increasingly seen as essential transition fuels, offering lower emissions and supporting grid stability as renewables expand. Steve Foster, venture partner at PIVA, stated that switching from coal to natural gas is often the quickest way to reduce emissions while maintaining reliable power.
Securing finance for this transition is crucial, the panellists said. While funding for viable renewable projects is generally available, the experts highlighted that new coal plants face major financial hurdles, and even natural gas projects are experiencing increased scrutiny as capital shifts towards renewables.
The discussion also touched on the role of emerging technologies and grid infrastructure. The experts emphasised that pragmatic action is key, deploying proven energy solutions like renewables and natural gas, while also improving electricity grids to manage increased renewable penetration.
China’s energy transition is no longer at a crossroads, pointed out Wang Zhen, deputy chief economist at China National Offshore Oil Corporation (CNOOC), while speaking at the event. The nation has leveraged its massive industrial base and policy clarity to lead the global renewable energy build-out, fuelled by dynamic private sector competition and innovation. Simultaneously, state energy giants like CNOOC are implementing multifaceted strategies to decarbonise their core hydrocarbon operations, said Wang.
A plenary session on building future energy infrastructure underscored the need to move beyond replacing ageing assets and towards reimagining energy systems, their financing, and distribution. Speakers noted that recent geopolitical instability, economic pressures, and supply chain disruptions have shifted focus from sustainability to energy security, though investment in sustainable energy remains essential.
The discussion also highlighted Asia’s significant investment needs for the energy transition, with estimates ranging between $25–50 trillion by 2050, particularly in renewable energy, electric vehicle supply chains and grid infrastructure across the ASEAN region.
In a separate session on nuclear power, experts examined the growing interest in advanced reactor technologies across Asia. They emphasised that next-generation nuclear designs offer the potential for improved safety, efficiency and reduced waste, positioning nuclear energy as a key component of the region’s long-term decarbonisation strategies.
