East Asia stands at a turning point in its energy and economic development. After decades of coal-driven industrial growth, the region now faces rising emissions, energy security risks and growing pressure to remain competitive in a low-carbon global economy. A new World Bank Group report, Green Horizon: East Asia’s Sustainable Energy Future, finds that the region’s vast but largely untapped renewable energy resources can support a new wave of growth while delivering affordable power, improved air quality and long-term energy security.
Launched in August 2025, the report focuses on practical pathways to decarbonize the power and industrial sectors, which together account for up to 87 percent of East Asia’s greenhouse gas emissions. It outlines a strategy centered on improving energy efficiency, accelerating electrification, expanding renewable energy capacity and deploying advanced technologies such as green hydrogen and carbon capture. These measures are positioned not as climate trade-offs, but as foundations for industrial competitiveness and economic resilience.
China, Indonesia, Viet Nam and the Philippines are central to the region’s transition. Together, they account for nearly 60 percent of global coal consumption and more than 40 percent of annual global emissions. Electricity demand across the region is expected to double over the next three decades, intensifying the urgency for change. Yet these same countries possess extraordinary renewable potential, estimated at around 65,000 gigawatts, most of which remains untapped. While hydropower remains important, rapid cost declines have made solar and wind—particularly offshore wind—key drivers of future expansion.
The report estimates that decarbonizing power systems in these four economies will require around US$9 trillion in investment over the next two decades. While public funding will be critical to reduce risk and enable new technologies, private capital is expected to lead the transition. Clear policies, predictable regulatory frameworks and modernized power systems are identified as essential conditions for attracting large-scale investment and lowering financing costs.
The economic benefits extend beyond energy supply. Clean energy expansion is already a major source of employment, with China employing more than four million people in the sector. Viet Nam is projected to gain nearly one million additional clean energy jobs by 2040, while Indonesia and the Philippines are expected to see growth across manufacturing, construction and energy services as renewable supply chains expand.
Renewable energy also strengthens competitiveness and energy security by reducing reliance on imported fuels and insulating economies from global price volatility. For households, cleaner power can deliver more stable electricity costs, improved air quality and better health outcomes. As global value chains increasingly prioritize low-carbon production, access to clean energy is becoming a decisive factor for trade and investment.
Regional cooperation is highlighted as a critical accelerator of the transition. Cross-border power trade and stronger interconnections can lower system costs, balance variable renewable supply and enhance resilience. Initiatives to integrate power markets across Southeast Asia are seen as key to optimizing generation resources and scaling renewables efficiently.
The World Bank Group is supporting the shift from ambition to implementation through large-scale financing and regional initiatives aimed at expanding clean energy access and strengthening power systems. While the scale of the challenge remains significant, the report concludes that with coordinated policies, sustained investment and inclusive planning, renewable energy can power East Asia’s next chapter of growth while advancing climate and development goals together.
