Asia’s pragmatic energy transition balances clean power with security

Asia's sustainability push is shifting from "virtue signalling" to a "pragmatic transition" balancing clean energy with security and affordability, often retaining fossil fuels, says Moody's Rahul Ghosh. This divergence stems from an "erosion of multilateralism" and national priorities. Geopolitical shocks, including Russia's 2022 invasion of Ukraine and U.S. strikes on Iran disrupting the Strait of Hormuz, exposed Asia's energy reliance on the volatile Middle East. In response, governments are investing in renewables, nuclear power, and alternative fuel sources, while some, like Japan and Singapore, are boosting nuclear and low-carbon research. Some Asian nations are deepening fossil fuel reliance, with China, Japan, South Korea, and Indonesia increasing coal capacity since 2020. Climate adaptation is also drawing investment, as the UN confirmed the world failed to limit warming to 1.5°C, with Asia's under-insured regions facing heightened disaster risks.