Kuala Lumpur: Global interconnectedness is under strain due to rising uncertainties, eroding the predictability, reliability, and stability of existing global trade and economic systems, said Prime Minister Datuk Seri Anwar Ibrahim. Speaking at the Energy Asia 2025 today, he highlighted how geopolitical tensions, retaliatory tariffs, and disrupted supply chains have destabilized these systems, with the energy and climate sectors being notably fragile.
According to BERNAMA News Agency, Anwar expressed concern over the polarizing policy shifts driven by strategic competition, which hinder collaboration despite the persistent issue of energy security. He elaborated on the necessity for Asia to establish a coherent financial architecture to attract investments in renewable energy, citing that Southeast Asia only garnered two percent of global clean energy spending in 2023 despite its significant potential.
Zooming in on Malaysia, Anwar noted initiatives aimed at bridging the renewable energy gap, such as the Corporate Renewable Energy Supply Scheme (CRESS), which allows companies to source clean energy through the national grid. He also mentioned the Green Technology Financing Scheme as a mechanism to encourage green investments.
Anwar emphasized the importance of upgrading electricity grids for advancing energy transition, noting that ASEAN has progressed in this area through the ASEAN Power Grid (APG) initiative. This development is expected to enhance cross-border funding flows and foster a more integrated regional energy market.
Despite the dominance of fossil fuels, which still constitute nearly 80 percent of the global energy supply, Anwar stressed the need to improve efficiency and reduce emissions in existing energy systems. He underscored the significance of equity in the global energy transition, warning against decarbonization strategies that could exacerbate inequality.
Ensuring universal access to affordable, reliable energy is not just a moral duty but is foundational to a just energy transition, Anwar argued. He pointed out that energy security must encompass social justice and inclusive access. This approach is particularly crucial for Asia, where energy security is essential for progress and economic development.
As the region gears up for its economic resurgence, Anwar asserted that the journey towards net zero emissions should acknowledge the role of emissions-abated oil and gas alongside renewable energy. This balanced strategy is vital for ensuring affordable energy access, which is crucial for improving living standards in the region.