China’s role will only become more important, but Southeast Asian leaders will have difficult decisions to make, writes energy analyst Putra Adhigun
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7 November, 2024, Jakarta, Indonesia; a newspaper’s front-page reports on US election results (Image: Tatan Syuflana / Associated Press / Alamy)
With Donald Trump returning to power as US president in January 2025, Southeast Asian countries are carefully weighing the potential implications for their energy transition efforts. Trump’s second term as president, following his loss to Joe Biden in 2020, is set to usher in a significant shift in US global engagement, particularly in climate and clean energy leadership – a critical area for a world striving for long-term, sustainable transitions. Southeast Asia, which requires significant investments in clean energy, faces a growing dichotomy between US retrenchment and China’s expanding regional engagement.
Historically, the US has played an inconsistent role in climate leadership, making it an unreliable partner for a region requiring long-term energy sector commitments. While Japan has maintained its role as a traditional energy investor, China’s increasing prominence cannot be overlooked. Once focused on fossil fuel power generation, China is now leveraging its clean technology dominance in solar, electric vehicles (EV) and batteries, giving it a significant edge in the race for Southeast Asia’s energy future.
Clean tech competition
The clean technology space is a central battleground between the US and China. China’s rapid scaling of solar panel manufacturing and adoption has driven down global solar costs, by nearly 90% in the last decade enabling widespread adoption, including in price-sensitive Southeast Asian markets.
