MANILA, Philippines – Asia is emerging as the world’s fastest-growing region for renewable energy, but it remains heavily dependent on coal, underscoring the complexity of its energy transition, according to a new report by Energy Tracker Asia released on December 19, 2024.
The report, titled The State of Asia’s Energy Transition and the Outlook for 2025, provides an in-depth look at how Asian countries are trying to balance surging energy demand with the urgent need to decarbonize their economies.
Energy Tracker Asia said the region is on track to triple its renewable energy capacity by 2030, with major contributions from China, India, and Southeast Asian nations. This puts Asia ahead of other regions in scaling up clean power.
However, despite the rapid growth in solar, wind, and other renewables, Asia still accounts for 82% of global coal power generation, making it the world’s coal hub and one of the main battlegrounds for global climate goals.
“Asia’s energy transition tells a story of both progress and paradox,” the report said. “The region is investing more in clean electricity than ever before, yet coal remains deeply entrenched in its power systems.”
The report highlights a shift in energy investments, noting that clean electricity projects are now beginning to outpace fossil fuel financing in several countries. This marks a potential turning point in how capital is being allocated toward sustainable energy security.
Still, the report warns that the dominance of coal and other fossil fuels continues to undermine the region’s climate commitments. Many countries, it said, face the twin challenge of providing affordable energy to their growing populations while meeting decarbonization targets.
For the Philippines and its Southeast Asian neighbors, the findings resonate with ongoing national debates on energy security, power costs, and climate vulnerability. The report suggests that while renewable investments are increasing, policy and infrastructure gaps continue to slow down a full-scale transition.
Energy Tracker Asia urged governments, investors, and civil society groups to work together to ensure a “just and equitable transition”, emphasizing that clean energy expansion must also address job displacement and community resilience in fossil fuel-dependent areas.
The report concludes that Asia’s actions in the coming years will be decisive in determining whether the world can meet the 1.5°C climate target.
“What happens in Asia will shape the global energy future,” it said.
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