Southeast Asia energy transition faces financing and community hurdles

Singaporean banks may reduce or terminate financing for companies involved in deforestation and open burning as part of a zero-tolerance policy.

In Southeast Asia, the expansion of clean energy infrastructure faces challenges regarding land rights and community support. While Singapore’s plans to import low-carbon electricity drive regional investment, experts suggest that projects must provide co-benefits to local agriculture and fisheries to avoid conflict. Examples include a community-owned microgrid in East Kalimantan, Indonesia, and a large-scale solar plant at the Cirata reservoir. However, the Cirata project has faced criticism from local community members regarding livelihood impacts, highlighting the need for deeper community partnership in the energy transition.