Industrial Transformation in ASEAN A Cluster-Driven Model for Regional and Global Collaboration 2026

While ASEAN nations are advancing industrial growth, they also need reliable energy to balance security, growth and sustainability. The region’s energy transition is shaped by varying natural resource availability, economic structures and policy ambitions across its member states. The region’s cumulative energy mix is still heavily reliant on fossil fuels. The greenhouse gas (GHG) emissions profile shows that four countries contribute over 80% of emissions, with Indonesia alone accounting for 38%,26 as illustrated in Figure 3. 2.2 ASEAN nations overview: balancing industrial growth and decarbonization ASEAN electricity mix by source (2023*) ASEAN GHG emissions share by country (2023*)ASEAN total energy supply by source (2023*) 27%6% 4%16%45% 31% 19%29%6%12% 38.3% 17.0% 14.7% 14.2% 8.9% 2.6%1.7% 1.1% 1.0% 0.5% 0.03%1%2% 1,351,475 gigawatt hours (GWh)31,710,111 terajoules (TJ) Indonesia Viet Nam Malaysia Thailand Philippines Singapore Myanmar Lao People’s Democratic RepublicCambodia Brunei Timor-LesteOil Natural gas Coal Hydro Solar, wind and other renewables Biofuels and wasteASEAN energy and emissions profile FIGURE 3 *Data for Timor-Leste are based on 2022 figures. Source: International Energy Agency (IEA). (n.d.). Asia Pacific Total CO2 Emissions. At the country level, energy transition pathways vary widely. These differing national contexts shape both the pace and nature of ASEAN’s transition, underscoring the importance of regional coordination to achieve shared goals. Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration 10