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South East Asia

The fast economic growth and increasing demand for energy-intensive raw materials in Southeast Asia underline the need for an industrial climate policy framework and investments in low-carbon technologies.

With fast population and economic growth, coupled with rising prosperity, the demand for steel, cement, and chemical products in Southeast Asia is set to at least double in this decade. Consequently, governments in the region are planning to significantly expand their production of raw materials for industry. At the same time, all countries in the region have committed to climate action, and most of them have set net-zero targets for 2050 or 2060. Unless governments ensure that the industrial investment decisions are in line with the climate action goals, they entail risks of stranded assets. Together with partner think tanks in the region, Agora Industry develops forward-thinking policy concepts that aim to enable investments in technologies aligned with emissions reduction goals. Financing issues and costs associated with initially more expensive climate-neutral production technologies are areas of particular importance in the discussion.

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