RECCESSARY’s “ASEAN Weekly” highlights Southeast Asia’s new energy and carbon market updates. (Image: RECCESSARY)
This week’s ASEAN sustainability highlights cover clean energy investment, ESG transformation in electronics, and the accelerating EV supply chain. Saudi Arabia’s ACWA Power is expanding its footprint in Southeast Asia with a USD 620 million investment in clean power projects in the Philippines, while Vietnam’s xEV battery supply chain is gaining momentum, with BYD and LGES stepping up investments as EV demand surges. Here are the key ASEAN stories from Jan. 26 to Feb. 1.
Saudi ACWA Power expands ASEAN footprint with $200 million Philippines clean power investment
Saudi Arabian energy firm ACWA Power is investing USD 200 million in clean electricity generation in the Philippines, according to the country’s Bases Conversion and Development Authority (BCDA) on Jan. 23.
The agreement was signed at the World Economic Forum 2026, marking ACWA Power’s entry into a 500-hectare renewable energy development in New Clark City, as the company continues to expand its footprint across Southeast Asia. Read more here
Philippines to release cement decarbonization roadmap ahead of ASEAN Summit
As this year’s ASEAN chair, the Philippines is set to highlight its commitment to industrial decarbonization on the regional stage. The Cement Manufacturers Association of the Philippines (CeMAP) said it expects to finalize a decarbonization roadmap for the sector by the end of February, focusing on increasing the use of alternative fuels and reducing clinker consumption.
Under the plan, emissions reduction targets will be reviewed and updated every five years, with the ultimate goal of achieving net-zero emissions by 2050. If approved as planned, the Philippines would become the second ASEAN country to put forward a concrete decarbonization strategy for the cement industry. Read more here
The Philippines is set to unveil a cement sector decarbonization blueprint, focusing on alternative fuels and low-carbon cement. (Photo: iStock)
Preparing for takeoff: How Southeast Asian airlines are navigating high SAF costs
Sustainable aviation fuels (SAF) are increasingly seen as the primary pathway for the aviation sector to decarbonize, a consensus that is also taking shape across Southeast Asia. Yet the Thai case also underscores a challenge shared across ASEAN. Regulators have acknowledged that high costs remain the single largest barrier to SAF adoption, with prices still significantly higher than those of conventional jet fuel. For many airlines, large-scale SAF use remains a longer-term ambition rather than an immediate operational reality. Read more here
Vietnam’s electronics industry faces 2026 ESG turning point amid stricter global standards
Vietnam’s electronics industry has emerged as one of Asia’s fastest-growing manufacturing hubs. Tech giant Google is reportedly planning to expand research and production of high-end smartphones in the country this year. However, as global supply chains intensify their focus on ESG—environmental protection, social responsibility, and corporate governance—compliance pressure on Vietnamese firms is mounting.
The Vietnam Electronic Industries Association (VEIA) recently warned that the export-driven electronics sector is now facing a wave of ESG-driven transformation, with the 2025–2027 period shaping up to be a decisive window. Read more here
Kim Long Motor, BYD build commercial EV battery plant as Vietnam EV demand surges
Vietnamese automaker Kim Long Motor (KLM) said on Tuesday it will partner with China’s BYD to develop a USD 130 million battery manufacturing plant for commercial electric vehicles (EVs). The facility will be built on a 4.4-hectare site and have an initial production capacity of 3 gigawatt-hours (GWh) per year, KLM said in a statement. Read more here
Vietnamese automaker Kim Long Motor partners with China’s BYD to develop a battery manufacturing plant for commercial electric vehicles. (Photo: KLM)
Climate action can unlock Southeast Asia’s future competitiveness, experts say
Malaysia, Thailand and Indonesia all filed new climate action plans towards the end of last year. While the ambition of these “nationally determined contributions” under the Paris Agreement will rightly be scrutinised, they all point in the direction of a cleaner future. With the destination reaffirmed and strengthened, what matters now is turning pledges into robust outcomes. That is where the hard work begins for the power sector, one of the region’s largest sources of emissions. Read more here
From promise to peril? The hidden risks in Malaysia’s mine-to-magnet rare earth push
Malaysia’s ambitious plan to develop the entire rare earth elements (REE) production spectrum, from mining to processing and manufacturing, reflects a strategic response to rising global demand for critical minerals whose supply remains limited. Rare earths underpin green technologies, electric vehicles, wind turbines, and advanced electronics, with global demand projected to grow at 8.7 per cent annually from 2025 to 2030. Read more here
Philippines tightens first offshore wind auction rules: Which investors step forward?
The Philippine government is moving to finalize the framework for its first offshore wind auction, as it seeks to keep projects on track and reduce execution risks. On Thursday, the Department of Energy (DOE) released a Supplemental Terms of Reference (TOR) for the fifth round of the Green Energy Auction (GEA-5), covering fixed-bottom offshore wind projects and providing clearer guidance on timelines, documentation, and compliance requirements. Read more here
Singapore accelerates SAF rollout with procurement plan, EtJ fuel ambitions
Singapore is accelerating its push to decarbonize aviation by putting sustainable aviation fuel (SAF) at the center of its strategy. On Jan. 29, the Civil Aviation Authority of Singapore (CAAS) said it will roll out the first voluntary SAF procurement trial, paving the way for a blending mandate set to take effect in October. Read more here
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