On October 2, 2024, key players from the public, private, and philanthropic sectors gathered at the AsiaXchange Forum, organized by The Rockefeller Foundation in Bangkok, Thailand, to discuss a pivotal challenge: accelerating Southeast Asia’s energy transition through partnerships. With the clock ticking toward the UN 2030 targets, particularly SDG7, which aims to ensure universal access to affordable, reliable, and sustainable energy, the stakes have never been higher.
The event, Building Effective Partnerships for Accelerating Energy Transition in Southeast Asia, underscored that the transition is not just a technical feat, but a deeply human challenge. It requires collaboration across Public-Private-Philanthropy Partnerships (4Ps), where financiers, governments, businesses, and civil society align to create actionable solutions. A highlight of the event was the Solution Demo of the Southeast Asia Information Platform for the Energy Transition (SIPET), presented by Maximilian Heil from GIZ and Project Coordinator at CASE. SIPET exemplifies how shared data can drive alignment and transparency in the region’s energy transition efforts.
Moving from MoUs to MoDo's: The Need for Action
While agreements and memorandums of understanding (MoUs) have set the foundation, it’s time to move from MoUs to MoDo’s—from promises to actions. Innovation is urgently needed, especially in the philanthropy sector, which, despite its relatively short 120-year history, is crucial for mobilizing finance and fostering projects that de-risk investments. As Kitty Bu, Vice President for Asia ex-India at the Global Energy Alliance for the People and the Planet (GEAPP), aptly noted, “We have a system failure.” Carbon costs are not priced into business operations, creating a market imbalance that needs correcting if we are to meet global climate targets.
The Capital Paradox: No Shortage of Funds, But a Lack of Bankable Projects
One paradox highlighted during the dialogue is that while there is no shortage of capital, the real challenge lies in the lack of bankable projects. This is where the collaboration across sectors becomes critical. Financial instruments need to be designed to reduce risk, making energy projects viable. However, finance alone cannot drive change. Close alignment with governments is essential to create an enabling environment for policy shifts and infrastructure development.
Innovation and Partnership: The Way Forward
Throughout the event, the recurring theme was partnership. The 4Ps are key to ensuring that Southeast Asia does not fall behind in the global race for a low-carbon future. SIPET, for example, is designed to facilitate this coordination by offering a robust platform for information exchange and regional collaboration. This tool empowers stakeholders to work more effectively by breaking down silos and enhancing visibility into project pipelines and funding opportunities.
As we face the next six critical years in the global energy transition, the alignment of all stakeholders is imperative. With initiatives like SIPET, Southeast Asia has a unique opportunity to seize its renewable energy potential and shape a sustainable future. However, the time to act is now—otherwise, the region risks being left behind.
By focusing on concrete actions, and through innovation in both finance and partnerships, Southeast Asia can leapfrog and become a model for the rest of the world. Align, act, and accelerate—this is the only way forward if we want to ensure a just and equitable energy transition for all.