IEEFA Asia Newsletter

Welcome

Our team have produced a whirlwind of insights this month. We have tackled the latest shifts in policies, markets, and finance across Asia’s energy transition and other key global developments.  

Some key highlights include:

• Indonesian President Prabowo directed the restart of coal gasification dimethyl ether (DME) projects to process low-calorie coal and reduce liquefied petroleum gas (LPG) imports. However, given the opportunity and sunk costs, along with the higher energy prices for Indonesian consumers, the DME projects are unlikely to be feasible investments.
• Japan’s Seventh Strategic Energy Plan aims to increase its self-development ratio to achieve a stable energy supply while promoting fossil fuel investments abroad. We highlight that global decarbonization threatens profitability and increases energy security risks.
• South Korea’s 11^th Basic Plan for Long-Term Electricity Supply and Demand (BPLE) makes some progress toward reaching its decarbonization goals but prioritizes liquefied natural gas (LNG) fired power, along with unproven, expensive nuclear power to meet the demand for the Artificial Intelligence (AI) and semiconductor sectors. We also examined how the country can strengthen its sustainable aviation fuel (SAF) policies to become a leading SAF producer.
• The U.S. exit from the Just Energy Transition Partnership (JETP) can be viewed as favorable for the energy transition. Given the U.S. administration’s contradictory priorities to drill for oil and gas and enhance liquefied natural gas (LNG) sales overseas, its continued involvement may have led to delays or diversions.

We’re also working on several major reports that will be released soon. Stay tuned, and feel free to reach out if you'd like to explore any of our insights further.

Warm regards,

Paige Nguyen

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Media Highlights

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• Mongabay: Indonesia’s coal gasification reboot faces backlash over economic, environmental risks
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