Asia is set to continue leading global decarbonization efforts in 2025, with significant developments across multiple renewable energy sectors. This region remains the preferred destination for energy transition investors, driven by robust policy frameworks and rapid technological advancement.
China’s Dominant Position
- Expected to reach 1,500 GW of clean power by 2025, exceeding its 2030 target of 1,200 GW
- Will account for nearly 60% of all new renewable capacity installed globally through 2030
- Controls over 80% of solar panel manufacturing stages
- Set to deploy 130 GW of offshore wind by 2030
Regional Growth Areas
Offshore Wind
- APAC offshore wind capacity projected to increase sixfold from 2024-2030
- Japan and South Korea have awarded projects to come online from 2026
- Vietnam targeting 6 GW by 2030 and 70-91.5 GW by 2050
- Regional turbine supply already outpaces global manufacturers
Solar Expansion
- Nine of the top ten global floating solar markets will be in APAC, accounting for 57 of 77 GW installed capacity by 2033
- India, China, and Indonesia will lead floating solar deployment
- Vietnam has emerged as the world’s second-leading solar panel manufacturer
- Philippines and Malaysia implementing strategic policies to boost solar deployment
Electric Vehicles and Batteries
- China captured 76% of the global EV market in October 2024
- Vietnam, Thailand, and Malaysia advancing in EV and battery manufacturing
- China’s battery manufacturing capacity will remain twice its domestic demand by 2030
- Southeast Asian countries leveraging their critical mineral resources (Vietnam’s rare earths, Philippines and Indonesia’s nickel)
Green Hydrogen
- Clean hydrogen supply expected to increase 30-fold by 2030
- China and India positioned as economically viable markets due to cheap renewable energy
- Indonesia emerging as Southeast Asia’s leading green hydrogen producer
- Japan and South Korea actively pursuing hydrogen projects despite challenges
Investment Outlook
- Clean energy investments in Asia need to triple 2023 levels by 2030 to align with Paris Agreement goals
- East Asia remains the most preferred region for energy transition investors
- Government interventions through feed-in tariffs, tax incentives, and subsidies remain crucial for attracting private capital
The region’s continued leadership in renewable energy deployment emphasizes the importance of supportive regulatory frameworks, supply chain development, and international collaboration to maintain momentum in the global energy transition.
