IEEFA Asia Newsletter

November has been a momentous month with the U.S. election and COP29 dominating global headlines. These events have underscored the pressing need for ambitious climate action, while also exposing the complexities and competing interests inherent in climate discourse and the evolving dynamics of the energy transition.

This month, our team delved into key energy transition developments across Asia, focusing on Cambodia, Japan, and Indonesia:

• Recent government plans in Cambodia envision significant increases in renewable energy capacity as well as the introduction of liquefied natural gas (LNG) and its associated infrastructure. High dependence on LNG could jeopardize national energy security as it has proven unreliable for many emerging Asian nations, which often struggle to purchase the fuel when global prices spike.

• Japan, once the largest LNG importer, now faces declining demand due to nuclear restarts and renewables buildout, pushing the country’s largest LNG companies to resell greater LNG volumes overseas. Despite decreasing domestic demand, government policies have directed companies to maintain their current level of total LNG transactions and preserve the country’s influence in global markets. 

• Adaro Energy Indonesia, the world’s sixth-largest coal mining company, plans to spin off its thermal coal business, Adaro Andalan Indonesia (AAI), through a public offering. There are concerns that this move undermines emissions targets, as new owners may not uphold Adaro's commitment to decarbonization and mine rehabilitation should be more transparent.

We’ll return with more insights next month as we wrap up the year.

Paige Nguyen