Dear IEEFA Asia Community,
This month’s research explores key developments shaping Asia’s energy transition, focusing on South Korea's purchase of liquefied natural gas (LNG) from the United States (U.S.), Japan's role in Southeast Asia's energy future, the performance of sustainable bonds in the region, how clean energy is replacing coal-fired generation in the Philippines, and what surging battery-electric truck sales in China mean for LNG demand.
Key takeaways from this month’s research include:
- South Korea’s commitment to achieving net-zero carbon emissions by 2050 necessitates recognizing that LNG is a fossil fuel and that its use should decline. Additional imports of U.S. LNG could add further stranded asset risks amid the country's declining demand and the fuel’s diminishing role in the energy transition.
- By supporting renewable energy deployment and supply chain development in Southeast Asia, Japan could address three interconnected challenges: fossil fuel overreliance, regional supply insecurity, and geopolitical risks stemming from overdependence on China or the U.S.
- Sustainable funds saw minimal outflows in the first quarter of 2025 and continued to outperform amid market volatility. Environmental, social, and governance (ESG) have kept pace with the broader equity markets, while clean energy stocks surpassed fossil fuel and traditional energy sectors. Sustainable bond issuance in Asia accelerated, with outstanding volumes tripling to USD918 billion by the end of 2024.
- Coal-fired generation in the Philippines declined in the first half of 2025, but clean energy — not LNG — is driving the shift. Renewable generation and capacity grew more than LNG, while coal plant outages also contributed to the drop. Price trends indicate that renewables will limit LNG’s long-term role in the country.
- Battery-electric truck sales are surging in China, with heavy-duty vehicle fleet operators adopting electric alternatives because of higher LNG prices, lower ownership costs for electric models, and the expansion of battery technology and infrastructure. The country’s LNG trucking boom may remain a domestic trend with little impact on global LNG flows.
We encourage you to read these analyses.
Warm regards,
Paige Nguyen
Director, Asia
Institute for Energy Economics and Financial Analysis
