85% Share of region's energy supply dependent on fossil fuels
Energy
Asia-Pacific must rapidly ditch fossil-fueled transport and scale up clean and proven tech, before energy demand outpaces climate action
Asia-Pacific must rapidly ditch fossil-fueled transport and scale up clean and proven tech, before energy demand outpaces climate action
Asia-Pacific must accelerate its shift away from fossil fuel-dependent transport systems. With the region driving 65% of global energy demand growth in 2024, choosing the right clean alternatives has never been more critical.
The region remains dependent on fossil fuels for 85% of its energy supply, but change is accelerating. Direct electrification is the most efficient pathway for the region's cars and trucks, while hydrogen-based fuels will be essential for aviation and shipping sectors. There is a limited role for sustainable biofuels as well, provided they are free of fraud and meet strict sustainability criteria.
The technologies exist to decarbonise all transport modes across Asia-Pacific—what's crucial now is unprecedented speed and scale. This means embracing proven solutions while avoiding false alternatives that often harm the planet more than the fuels they replace.
85% Share of region's energy supply dependent on fossil fuels
67% APAC region's share of global EV sales
$27 billion Biofuels production market in 2024
With 78% of oil consumed in APAC being imported, the region remains heavily reliant on global markets, leaving it vulnerable to supply disruptions and price volatility. This dependency exposes economies to external shocks, as demonstrated during recent geopolitical tensions when energy costs surged across the region. The transport sector, which accounts for the largest share of oil consumption, represents both the greatest vulnerability and the most significant opportunity for reducing import dependence.
Renewable energy now accounts for more than a quarter of electricity generation in APAC, but coal remains dominant, with a 57% share of electricity generation. However, the region’s reliance on fossil fuels can be broken. Even with no further support for clean technologies beyond existing measures, but a level playing field that allows these solutions to compete with incumbent technologies, the region’s renewables capacity could more than double by 2030, from current levels. This could result in renewables supplying half of total energy supply at the end of this decade.
In 2024, the APAC region represented at least 67% of global EV sales, with China leading the charge. Transport electrification offers a pathway to enhanced energy security by reducing reliance on volatile oil markets. Electric vehicles powered by domestically generated renewable electricity can insulate the region from crude oil price shocks and supply chain disruptions. As Asia-Pacific leads global renewable energy deployment, this transition becomes increasingly compelling from both economic and strategic perspectives.
Asia-Pacific's biofuels production market reached over $27 billion in 2024, accounting for around 14% of global output. While the region’s growth has been remarkable, some production continues to raise concerns over land-use change and deforestation impacts.
With Europe heavily relying on biofuels imports from Asia, including up to 80% of its used cooking oil, and concerns mounting over fraud, the APAC region is well placed to lead in developing and enforcing more transparent, sustainable biofuel supply chains to serve both its own markets and global demand.
