Southeast Asia’s 2025 marked by fatal floods, fossil fuel expansion and renewed mining boom

The Philippines wants to become a regional data centre hub, but high power prices, coal-heavy electricity, grid constraints and climate risks are testing that vision. Analysts say data centres could grow fast, yet competitiveness will depend on how quickly renewables, grid upgrades, permitting reforms and climate-resilient infrastructure actually materialise on the ground.

Vietnam’s industry ministry has proposed raising the cap on surplus rooftop solar sold to the grid from 20% to 50%, with payments linked to average market prices but below ground-mounted solar tariffs. The draft also allows surplus from public buildings and waives caps in off-grid mountainous, border, and island areas.

Malaysia has launched ASEAN’s first EV Battery Passport Standard, mandating full lifecycle transparency to improve recycling, support decarbonization goals, and build a circular battery economy. The policy is expected to boost EV adoption and strengthen Malaysia’s competitiveness in the regional green economy.

UNEP’s 2025 Adaptation Gap Report finds developing countries need US$310–365 billion annually for climate adaptation by 2035, yet receive about US$26 billion. The finance gap is widening, loans and debt risks are growing, and NCQG pledges remain insufficient and inflation-blind.