Global landscape of energy transition finance 2025

This study analyzes electricity subsidy policy in Indonesia in relation to energy resilience, green energy transition, and fiscal sustainability. The study uses three main simulations (BAU and LTES) to evaluate the impact of subsidies on electricity tariffs, fiscal needs, and macroeconomic indicators until 2045. The results show that the current electricity subsidy, while supporting affordability for low-income households, has not yet encouraged productive use of electricity and, in fact, burdens the State Budget (APBN). Transitioning to renewable energy (LTES) can reduce the need for subsidies by up to 42% by 2045.

This joint report by ERIA, ADB, and METI examines the evolving role of transition finance, technology, and policy in supporting the decarbonisation of Southeast Asia’s emissions-intensive sectors such as power and heavy industry – the so-called ‘high emissions’ and ‘hard-to-abate’ sectors, respectively. These sectors are highlighted in high-level roadmaps that identify key investment areas for a pragmatic energy transition.

ASEAN stands at a defining moment, balancing geopolitics, a just energy transition, and regional integration through power interconnection. IRENA’s updated socio-economic footprint report finds that under a 1.5°C Scenario, Southeast Asia’s GDP could grow 2.6% annually (2023–2050), driven by investment, trade, and social policies enhancing resilience and inclusiveness.

The Thailand Country Climate and Development Report (CCDR) charts a strategic path aligning climate action with national development. It urges rapid adaptation and emission reduction to safeguard growth, manage risks, and unlock green opportunities across Thailand’s comparative advantage sectors, emphasizing that inaction costs far outweigh investments.

This brief shows how ADB plans to help Asia and the Pacific’s ports cut emissions, reduce their carbon footprint, and become more resilient using loans, grants, and equity from its proposed $1 billion Sustainable and Resilient Maritime Fund (SRMF).