Southeast Asian clean energy transition

Southeast Asian nations are pursuing clean energy and electric vehicle (EV) transitions through various policy frameworks, though significant structural challenges remain.

In Indonesia, the government intends to resume an electric motorcycle subsidy program in September 2026, with a proposed subsidy of 3 million rupiah per motorcycle. While the program aims to support 1 million purchases, officials noted that domestic production capacity is a challenge, with estimates suggesting only 100,000 motorcycles will be produced by the end of the year. Meanwhile, Laos is utilizing its hydroelectric resources to promote green transportation, having temporarily suspended gasoline-powered vehicle imports with a goal for EVs to comprise 30% of domestic vehicles by 2030.

Broader regional efforts face hurdles regarding infrastructure and financing. In the Philippines, the offshore wind sector is constrained by a lack of supporting ports despite a large project pipeline. On a regional scale, the Asian Development Bank (ADB) estimates that global clean power and grid upgrades will require $6 trillion between 2023 and 2050. To address capital gaps, the ADB’s GSS+ Bonds Initiative is working to deepen sustainable debt markets, noting that currently, only 12 per cent of regional climate finance is directed toward adaptation, while 84 per cent focuses on mitigation.