Key Points
- China has announced new, more ambitious climate goals for 2035. The move is expected to accelerate the green transition in Southeast Asia.
- China’s massive production of cheap solar panels, wind turbines, and batteries will benefit its neighbors.
- This will likely lead to increased Chinese investment in renewable energy projects across the ASEAN region.
- China has already invested over $2.7 billion in clean energy in Southeast Asia in the last decade.
China’s new, more ambitious climate goals are expected to provide a significant boost to the renewable energy sector in Southeast Asia. Analysts believe that as China doubles down on its own green transition, it will spur more investment and provide cheaper technology for its neighbors in the ASEAN bloc.
At the recent UN Climate Summit, President Xi Jinping announced that by 2035, China will cut its emissions by 7% to 10% from their peak, increase the share of non-fossil fuels in its energy mix to over 30%, and massively expand its wind and solar power capacity to 3,600 gigawatts.
This is a significant development for Southeast Asia, as China is one of the region’s largest investors and trading partners, particularly in clean technology.
As Chinese factories ramp up production of affordable solar panels, wind turbines, and batteries to meet their own domestic goals, these low-cost technologies will also flow to ASEAN nations, making their own green transitions easier and cheaper.
“China’s pledge could spur more renewable investment in ASEAN by sustaining low-cost technology and signaling investors that the age of coal is fading,” said one environmental campaigner.
China has already invested over $2.7 billion in clean energy in Southeast Asia over the past decade and is a major exporter of EVs, batteries, and solar components to the region. With its new, more ambitious climate commitments, that trend is only expected to accelerate, creating a powerful ripple effect that will help the entire region move toward a cleaner energy future.
