RECCESSARY’s “ASEAN Weekly” highlights Southeast Asia’s new energy and carbon market updates. (Image: RECCESSARY)
This week in ASEAN, Google signed a power purchase agreement (PPA) with Japan’s Shizen Energy to support carbon-free data centers in Malaysia, while Vietnam approved hybrid vehicle tax cuts set to take effect in 2026, a move expected to reshape investment plans among Japanese, South Korean and Chinese automakers. Below are ASEAN’s key stories from Dec. 15–21.
ASEAN outpaces U.S. in EV sales share: Ember highlights three key factors
Southeast Asia is rapidly emerging as a new global hotspot for electric vehicle (EV) adoption. A recent analysis by energy think tank Ember finds that Thailand's EVs accounted for 20% of new car sales in 2025, and in the first ten months of the year, the country sold more EVs than Denmark, one of Europe’s leading EV markets. In Indonesia, EVs made up 15% of new car sales, surpassing the U.S. for the first time. Read more here
Singapore emerges as Southeast Asia’s dominant green startup hub: Report
Singapore leads Southeast Asia in the number of green startups, with 494 companies accounting for around 45% of the regional total—far surpassing second- and third-ranked Indonesia and Malaysia. By sector, nature, agriculture and food-focused ventures dominate Southeast Asia’s green startup landscape, followed by energy transition.
The report notes that technology itself is no longer the primary constraint to developing a green economy in the region; instead, gaps in infrastructure, coordination, data availability and financing have emerged as the main bottlenecks. Read more here
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Singapore leads Southeast Asia’s green startup scene with 494 companies, representing a 45% share. (Photo: unsplash)
Vietnam’s hybrid tax breaks to spark new auto investment cycle in 2026
Starting in 2026, hybrid electric vehicles (HEVs) in Vietnam will be subject to an excise tax rate equivalent to 70% of that applied to conventional gasoline and diesel cars. Automakers expect the policy to significantly lower retail prices and stimulate demand, prompting not only Japanese, South Korean, and Chinese carmakers to step up their market push, but also new investments by domestic and Chinese players. Read more here
Google signs solar PPA with Shizen Energy to power Malaysia data centers carbon-free
Japanese renewable energy developer Shizen Energy announced on Dec. 15 that it has signed a power purchase agreement (PPA) with U.S. technology giant Google to develop a 29.9 MW solar photovoltaic project in Malaysia. The project marks Shizen Energy’s first utility-scale solar development in the country, paving the way for a broader expansion of its renewable energy footprint across Southeast Asia. Read more here
How mandatory storage could shape Malaysia’s utility-scale solar market
Solar power has changed the rhythm of the grid. There is too much electricity during the day and not enough once the sun goes down. This mismatch, illustrated by the “duck curve,” has become a challenge faced by every market with growing renewable energy. Battery Energy Storage Systems (BESS) is increasingly seen as the tool that can fill this gap and keep the grid steady.
Solar power now accounts for 92% of Malaysia’s total renewable energy installed capacity, according to government figures. This reliance on solar generation is shaping Malaysia’s next policy moves, pushing storage to the center of its energy transition agenda. Read more here
Solar power now makes up 92% of Malaysia’s renewable energy capacity, placing storage at the center of the country’s energy transition agenda. (Photo: Solarvest)
Thailand aims for 100% plastic reuse by 2027 amid EU CBAM pressure
Thailand aims to make 100% of its plastic waste reusable by 2027. As the country accelerates efforts to meet its domestic target, both government and industry are also preparing petrochemical producers for the European Union's Carbon Border Adjustment Mechanism (CBAM), which may soon extend to plastics.
“Unless the government supports the development of more efficient recycling technology and processes, these high costs will persist, and we won’t genuinely reduce plastic waste volumes,” said Thititham Pongpanangam, chairman of the FTI’s Plastics Industry Club. He added that although manufacturers are adjusting to external pressures, shortcomings in domestic waste management remain the most significant barrier to progress. Read more here
Flood control in the Philippines: When corruption bedevils climate change mitigation
The Philippines is one of the countries most at risk from climate change. To compound matters, the reported proliferation of corruption-ridden and substandard flood control projects has amplified the impact of climate change risks.
In his 2025 State of the Nation Address, President Ferdinand R. Marcos Jr. divulged large-scale corruption in the building of public works. He has launched months-long investigations into flood control projects and the deep collusion between lawmakers, public works officials, private sector contractors, and even budget officials. Read more here
Unregulated tourism risks disrupting Timor-Leste’s whale migration
Whale tourism in Timor-Leste is booming. Tour operators report a healthy number of sightings and full bookings in the peak season of September to December, when hundreds of pygmy blue whales make the journey through the Ombai-Wetar Strait on their way south to western Australia.
Timor-Leste’s whale tourism industry direly needs regulation, experts say. A policy was drafted in 2018 but shelved after a change of government. A blue economy unit was created in 2023, and a national blue economy master plan released in September includes whale-watching rules, but these have yet to be enacted. Read more here
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