The impact of import activities on CO2 emissions in the Association of Southeast Asian Nations (ASEAN). Đề tài đạt 10 điểm Đề án Chuyên ngành Kinh tế quốc tế NEU. In the history of human development, there are two major challenges that people have to confront, which are economic development and environmental protection. Recently, the environment has become one of the biggest concerns not only for developed countries but also for developing ones due to the declining quality of the environment caused by global warming and climate change (Kasman Duman, 2015). To be more specific, environmental pollution can have a longterm impact on future generations (Clayton et al., 2016). The degradation of the environment is the result of the industrialization process and economic development. Environmental degradation is a decrease in both the quality and quantity of natural resources and is reflected in the destruction of ecosystems, the extinction of flora and fauna, and pollution. To measure the quality of the environment, one of the most frequently used indicators is the amount of CO2 emissions.
THEORETICAL FRAMEWORK OF CO2 EMISSIONS
Theoretical framework of import activities
Import is the process of bringing goods or services from one country into another for use or sale, as defined by Robert C Feenstra (2015) According to Caves (2007), import involves the flow of goods and services into a country or region, typically for resale or final consumption Tugcu & Topcu (2016) emphasize that import is a crucial component of international trade, facilitating the exchange of goods and services across borders to promote economic growth and development Additionally, imports enable countries to meet domestic demand for goods and services that they cannot efficiently produce themselves, supporting economic stability and consumer needs (Cline, W.R, 2004).
Direct import involves a buyer or importer purchasing goods directly from a foreign manufacturer or supplier, bypassing intermediaries like distributors or trading companies This approach allows businesses to have greater control over the procurement process, enabling them to actively conduct market research, select sales partners, determine transaction methods, and execute contracts independently.
Indirect import involves importing goods through commercial intermediaries like agents, brokers, distributors, or logistics providers, enabling businesses to reduce costs and mitigate risks This approach also facilitates access to new markets and helps establish partnerships with reputable sales channels However, relying on intermediaries can lead to challenges such as dependence on third parties and limited transparency in transactions, which businesses should carefully consider.
Temporary import and re-export (TIR) involve the temporary entry of goods into a country for specific purposes like trade shows or repairs, with the intention of re-exporting them afterward TIR facilitates cross-border trade by allowing businesses to avoid paying duties or taxes typically required for permanent imports This process simplifies international logistics and reduces costs for companies engaged in temporary trade activities.
An import joint venture is a strategic partnership between companies from two different countries, where one acts as the manufacturer or supplier and the other functions as the importer and distributor in the local market This arrangement is common for large-scale goods with specific characteristics unique to each country, enabling partners to share risks, reduce production and transportation costs, and improve market access (Zhao et al., 1998) However, it also presents challenges such as cultural and management style differences and complexities in managing intellectual property rights (Lee et al., 2018).
Import processing is a method where the importer (contractor) brings in raw materials from the exporter (manufacturer) to be processed according to the terms outlined in their contract This approach facilitates efficient transfer of raw materials while ensuring compliance with trade agreements, as outlined by the Vietnamese Ministry of Industry and Trade (2017).
The first step in the import process is identifying the products, which involves thorough market research to analyze demand in the target market and ensuring product compliance with the importing country's regulations (Viswanathan, 2013).
Negotiating the terms of trade is a crucial step in the import process, involving discussions on price, quantity, quality standards, and delivery schedule with the supplier This phase also includes establishing payment terms, such as the method of payment, payment schedule, and penalties for late payment or breach of contract Once both parties finalize and sign the agreement, it becomes a legally binding contract that governs the entire importation process, ensuring clarity and legal protection.
During the import procedure, verifying the goods documents is essential to confirm the legality and authenticity of imported items The World Customs Organization (WCO) emphasizes that import documents must include key information such as detailed descriptions, shipment details, and compliance certifications This step ensures compliance with international trade regulations and facilitates smooth customs clearance Proper documentation checks help prevent fraud, delays, and legal issues, making them a critical part of any successful import process.
A sale contract is a legal agreement between the seller and buyer that specifies the terms and conditions of the transaction, including crucial details such as price, quantity, quality, delivery date, payment terms, warranties, and liabilities of both parties This binding document protects the rights of both the seller and buyer, ensuring clarity and security in the sale process (Jane et al., 2010).
A bill of lading (B/L) is a crucial shipping document issued by a carrier such as a shipping company, trucking firm, or railroad, confirming receipt of goods for transport It functions as a contract of carriage, serving as both a receipt of shipment and a document of title, which allows the holder to claim ownership of the goods Additionally, the B/L details essential information including the quantity, description, and destination of the shipped cargo, making it an vital document for international trade and logistics.
A commercial invoice is a crucial document that details the goods sold by a seller to a buyer, including names, addresses, product descriptions, quantities, prices, and sale terms (Hill et al., 2020) It plays a vital role in calculating customs duties and taxes, ensuring proper identification and valuation of imported goods Additionally, the commercial invoice helps buyers confirm shipment details and facilitates payment processing, making it an essential component of international trade documentation.
A packing list is a crucial document that details the contents of a shipment, including item quantities, types, weight, dimensions, and special handling instructions Prepared by the exporter, it accompanies the shipment to inform importers, customs officials, and logistics providers about the cargo This document facilitates smooth transportation, customs clearance, and accurate delivery of goods, making it essential in international shipping (Johnson et al., 2010).
A Certificate of Origin (C/O) is an essential document in international trade that verifies the country where goods originate, impacting duties, taxes, and trade agreements This certificate helps customs authorities and trading partners confirm the product's country of origin, ensuring compliance with trade regulations and preferential tariff treatments Properly obtaining a C/O can streamline customs clearance processes and reduce potential delays or penalties in cross-border shipments.
Any other relevant permits or licenses
Import documents are essential for verifying the identity and quality of imported goods, ensuring compliance with legal and regulatory standards Depending on the type of products and their country of origin, importers might also be required to obtain additional certificates or documentation These documents help facilitate smooth customs clearance and ensure that all import regulations are properly followed.
Theoretical framework of CO2 emissions
CO2 emissions refer to the release of carbon dioxide into the atmosphere, significantly contributing to climate change and global warming Extensive studies highlight that rising CO2 levels pose urgent environmental challenges requiring immediate mitigation efforts As a major greenhouse gas, CO2 not only increases global air temperatures but also indirectly impacts ozone layers (Valadkhani et al., 2019) The amount of CO2 emitted is closely linked to social, economic, and industrial activities, predominantly stemming from human sources such as fossil fuel combustion, deforestation, biomass burning, and mineral extraction processes (Adom et al., 2012; Worrell et al., 2001).
Reducing CO2 emissions is essential in combating global warming and climate change, as identified by Pachauri & Meyer (2014), who highlight their role as a major contributor to environmental and societal challenges Extensive research, including reports from the IPCC (2014) and studies by Pacala & Socolow (2004), document the negative impacts of excessive CO2 on both human health and the environment Implementing effective policies and practices to decrease CO2 emissions remains a critical international priority for addressing the climate crisis.
The nexus between import activities and CO2 emissions
Theoretically, imports may contribute to environmental degradation through three channels represented by the table below:
Table 1.1: Influencing mechanisms of import on carbon emissions
The first mechanism states that higher imports are linked to greater transport use, which eventually results in greater CO2 emissions (Sadorsky,
The distribution of imported goods relies on an extensive transportation network that demands significant fuel consumption As the volume of imported goods increases, transportation machinery consumes more fuel, leading to higher carbon emissions This relationship highlights the environmental impact of expanding import activities on global carbon footprints.
The second claim is that imports may raise energy consumption if the imported products are energy intensive like refrigerators, air conditioners, dishwashers and automobiles, etc (Sadorsky, 2012).
Free trade enables countries to boost efficiency and competitiveness, allowing them to capture larger shares of the global market (Shahbaz et al., 2017) However, increased imports can lead to higher energy consumption, which in turn raises carbon emissions, as observed across 189 countries from 1990 to 2011 (Al-Mulali & Sheau-Ting, 2014) Similarly, Liddle (2018) found that imports significantly contribute to consumption-based emissions in a panel of 102 countries between 1990 and 2013 Therefore, increased imports may have a notable positive impact on carbon emissions, highlighting the environmental implications of free trade.
Import activities play a significant role in a country's economic development, yet they can also lead to increased greenhouse gas emissions, as highlighted by Peters et al (2011) The environmental impact of imports varies depending on the methods of production used in different countries, with some studies indicating that certain import practices contribute negatively to CO2 emissions For example, research by Ivanova et al demonstrates that the environmental footprint of imported goods can significantly influence national greenhouse gas levels, underscoring the importance of considering production processes in assessing the climate impact of international trade.
According to 2020 research, the production of imported goods results in emissions generated in the country of production, not the country of consumption Imports of goods and services significantly contribute to carbon emissions, especially in developed nations (Xie et al.,, 2021) Therefore, importing products with high carbon footprints can lead to increased CO2 emissions in the importing country.
Importing goods can significantly contribute to global greenhouse gas emissions, particularly when products are manufactured in countries relying on inefficient or non-clean energy sources The transportation of these goods across borders further amplifies their environmental impact, highlighting the importance of sustainable supply chain practices According to Ivan Faiella et al., reducing emissions associated with international trade is crucial for achieving global climate goals.
A 2013 study revealed that the UK’s carbon footprint is heavily influenced by imports, with most emissions originating from imported goods and services Transportation and energy-related sectors were identified as the most carbon-intensive, emphasizing their significant role in overall emissions Helga Van Miegroet et al (2020) highlighted that transportation and processing of crops contribute substantially to emissions associated with crop imports Additionally, Sangwon Suh et al (2010) examined the global greenhouse gas emissions embodied in international trade, underscoring the importance of considering trade-related emissions in climate policy.
Research from 1997 and 2004 indicates that international trade contributes approximately 18% of global emissions, primarily driven by energy consumption in transportation A 2020 study titled "Carbon Footprint of Global Crop Exports: The Case of Belgium" by Helga Van Miegroet et al highlights that the carbon footprint of crop imports to Belgium is significantly influenced by the energy used in transportation and processing These findings emphasize that transportation-related energy use plays a crucial role in the carbon emissions associated with international crop trade.
The measures to reduce emissions from global trade should focus on improving the efficiency of transportation (Glen P Peters et al., 2011)
Research by Peter Alexander et al (2018) highlights that the importation of food products significantly contributes to global greenhouse gas emissions, with major producers like Brazil and Argentina generating large CO2 emissions through food export activities Reducing emissions from food imports is essential to minimizing the environmental impact of agriculture worldwide Houghton et al (2018) emphasize that developed countries often import high-carbon-footprint goods such as food and consumer products, with transportation adding further to carbon emissions They argue that developed nations should take responsibility for their carbon footprint by reducing reliance on imported goods.
In 2017, the emissions from transporting food products and ingredients totalled 3 gigatonnes of carbon dioxide equivalents, which exceeds the transport emissions for commodities such as mining and manufacturing (Freda Kreier,
According to Lenzen et al (2018), the steel, cement, and seafood production sectors significantly contribute to carbon emissions from import activities The environmental impact of each sector varies depending on a country's production and transportation organization, highlighting the importance of supply chain efficiency in reducing carbon footprints.
Importing goods can significantly contribute to greenhouse gas emissions, especially CO2, in developed countries Additionally, production in exporting nations often relies on inefficient or fossil fuel-based energy sources, further increasing global emissions The transportation process itself, involving the movement of goods across borders, also releases greenhouse gases due to the extensive use of fossil fuels in shipping and logistics.
Theoretical framework of The Association of Southeast
1.4.1 Definition of The Association of Southeast Asian Nations
The Association of Southeast Asian Nations (ASEAN), established on August 8, 1967, by Thailand, Indonesia, Malaysia, Singapore, and the Philippines, aims to promote regional solidarity and cooperation Originally formed to address instability and violence in member countries, ASEAN expanded its focus to include economic collaboration, especially after the successful launch of a free trade area proposal by Thailand in 1991 Since then, ASEAN member states have held annual meetings to foster international partnerships and deepen economic, political, and cultural integration across Southeast Asia. -Boost your ASEAN content with SEO-perfect summaries—capture history and cooperation in every line!
Participations: The organization consists of 11 member states listed by their date of accession: Brunei, Cambodia, Laos, Myanmar, Malaysia, Indonesia, Philippines, Singapore, Thailand and Vietnam
Goals of operation: To maintain peace, security, and stability in the region, build a harmonious community, and develop the economy and society together.
Principles of bilateral and multilateral relations: Respect sovereignty and non-interference in each other's internal affairs, comply with the provisions of the ASEAN Charter
Principles of coordinating activities: The principle of consensus, the principle of equality, and the 6-X principle.
1.4.2 Characteristics of The Association of Southeast Asian Nations
ASEAN is an intergovernmental organization, emphasizing cooperation among its member states without possessing supranational authority over their sovereignty Unlike supranational entities, ASEAN's decisions are made collaboratively, requiring active participation and contribution from all member states to ensure consensus and mutual respect.
ASEAN countries are highly diverse in history, ethnicity, culture, language, religion, political systems, and socio-economic development, which enriches the ASEAN community but also poses challenges for regional cooperation While some member states prioritize security initiatives, others focus more on economic growth, reflecting their different national priorities This diversity creates a vibrant regional landscape but requires effective strategies to foster unity and collaboration among ASEAN nations.
Regionalism within ASEAN, which exemplifies regional cooperation, remains a relatively young phenomenon In Southeast Asia, factors such as geographical divisions, the influence of larger countries, colonial history, and ongoing socio-economic dynamics shape the development of regional integration efforts.
Cold War have somewhat divided the Southeast Asian peoples, leading to limited interaction and understanding of each other
ASEAN is an adaptable and evolving organization that maintains an open, collaborative approach with global partners Its strong international relationships contribute to its success as a key driver of regional integration and stability in East Asia.
Fifthly, the ASEAN member countries share a goal of maintaining peace in the region and the world, bringing development and prosperity to the member countries.
SITUATION OF CO2 EMISSIONS AND THE EFFECT OF
The situation of import activities of the Association of Southeast Asian Nations
2.1.1 The Association of Southeast Asian Nations Import Overview
2.1.1.1 ASEAN import of goods by countries
Table 2.1: ASEAN Imports of Goods, 2010 - 2019
The table 2.1 shows the imports of goods by ASEAN countries between
Between 2010 and 2019, the total import value steadily increased across the region, despite some fluctuations in individual member countries The ASEAN-6 nations—comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—collectively accounted for over 90% of the total import value, highlighting their dominant role in regional trade.
Singapore consistently ranked as the largest importer of goods in ASEAN, with imports surpassing 350 billion USD in both 2018 and 2019 Malaysia followed as the second-largest importer, with imports exceeding 200 billion USD during the same period.
2018 and 2019 Thailand, Vietnam, Indonesia, and the Philippines also had significant imports, ranging from 100 to 240 billion USD in 2019
In 2019, Brunei Darussalam and Lao PDR recorded the lowest import values among ASEAN countries, with approximately 5 billion USD each While Myanmar's total imports were smaller than many of its peers, it experienced the highest percentage growth, increasing from around 18 billion USD in 2010 to nearly 19 billion USD in 2019 Cambodia saw the most significant percentage increase in imports over the decade, growing from about 4.8 billion USD in 2010 to nearly 20 billion USD in 2019—an increase of over 300% Despite this remarkable growth, Cambodia's total imports remained relatively low compared to other ASEAN nations.
2.1.1.2 ASEAN import of services by countries
Table 2.2: ASEAN Imports of Services, 2010 - 2019
Figure 2.2 illustrates the ASEAN nations' total service import turnover from 2010 to 2019, highlighting an overall increasing trend Throughout this period, ASEAN countries' service import turnover has been comparable to their merchandise import turnover This growth reflects the expanding demand for imported services across the region, emphasizing ASEAN’s evolving international trade landscape.
Between 2010 and 2019, ASEAN countries experienced nearly a doubling in total service imports, increasing from $226.09 billion to $399.79 billion Singapore led the region in service imports, rising from $100.52 billion in 2010 to $199.04 billion in 2019, reflecting its prominent role in ASEAN's service sector Indonesia and Thailand ranked second and third in service imports, with values of $26.46 billion and $41.33 billion in 2010, respectively, indicating strong growth in their service industries over the decade.
In 2010, Lao PDR reported the lowest imports of services among the analyzed countries at only 263.1 million USD, with a modest increase to 1,252.6 million USD by 2019 Conversely, Cambodia, which also had low service imports in 2010 at 1,018.4 million USD, experienced a significant growth, reaching 3,273.9 million USD in 2019 This data highlights notable trends in service imports, with Lao PDR and Cambodia showcasing differing levels of growth over the decade.
2.1.1.3 The share of import of goods by ASEAN countries
Table 2.3: The share of ASEAN goods imports in ten years, 2010 to 2019
Total of Goods Import Value
Table 2.1 highlights Singapore's dominant position in ASEAN imports, with a total import value of $3,485,060.4 million, making up 28.94% of the region’s total imports from 2010 to 2019 Malaysia is the second-largest importer, contributing $1,925,226.5 million or 15.99%, emphasizing its significant role in ASEAN's trade landscape.
Thailand, Indonesia, and Vietnam are the leading importers within ASEAN, with import values of approximately $2.19 trillion, $1.68 trillion, and $1.62 trillion respectively, representing 18.15%, 13.96%, and 13.48% of the region’s total imports Other ASEAN countries have smaller import shares, with the Philippines accounting for 6.77%, Myanmar at 1.15%, and Cambodia and Brunei each contributing less than 1%, making them the smallest importers in the region.
Overall, the data suggests that the ASEAN region is an important market for goods imports, with several countries contributing significantly to the total.
The ASEAN import market is primarily led by key players such as Singapore, Thailand, and Malaysia, yet there are significant opportunities for smaller companies to expand and develop Vietnam has experienced remarkable growth, with its import market expanding from 8.2% in 2010 to 13.5% in 2019, establishing itself as a notable emerging market within the ASEAN community.
2.1.1.4 The share of import of services by ASEAN countries
Table 2.4: The share of ASEAN services imports in ten years, 2010 to 2019
Country Total of Services Import
Value (in million $US) Share (%)
This data illustrates the share of ASEAN services imports from 2010 to
2019, showing the total value of services imports for each member country and the percentage it contributes to the total value of services imports for the ASEAN region
Singapore currently dominates the ASEAN services market, with a service import value exceeding $1.5 trillion USD, representing nearly half of the region's total services imports Thailand and Malaysia follow as major players, holding 14.66% and 12.90% market shares respectively Smaller ASEAN countries like Cambodia, Lao PDR, and Brunei Darussalam contribute less than 1% each to the region’s service imports Over the past decade, services trade within ASEAN has seen consistent growth, fueled by increasing regional economic integration and digitalization, which continue to boost the growth of the service sector.
Singapore continues to hold the highest share of ASEAN goods imports, highlighting its dominant role in regional trade Meanwhile, Malaysia exhibits a trade pattern where goods imports surpass services imports, indicating a focus on tangible commodities Conversely, Thailand shows a higher share of services imports compared to goods, suggesting a shift towards a service-oriented trade strategy These differences in import compositions reflect diverse trade patterns among ASEAN countries, emphasizing the varied economic structures within the region.
2.1.2 Import market structure of the Association of Southeast Asian Nations 2.1.2.1 ASEAN’s import market
Figure 2.1: ASEAN Source of Imports of Goods, 2010 and 2019
The figure 2.1 illustrate the sources of imports of goods for ASEAN in
Between 2010 and 2019, the composition of import shares among different countries shifted significantly In 2010, ASEAN member countries held the largest share of imports at 25%, followed by China at 12.9%, Japan at 12.2%, the EU at 9.3%, and the USA at 8.5% Korea (Republic of) and Taiwan each contributed approximately 5-6% to total import value, while Saudi Arabia, the United Arab Emirates, and India contributed only around 2% Other countries collectively accounted for 14.2%, highlighting the diverse landscape of global imports during this period.
By 2019, China became the leading source of imports, accounting for 21.9%, surpassing ASEAN countries, which decreased to 21.6% While Japan, the EU, and the USA remained among the top five import sources, their shares experienced slight declines The Republic of Korea and Taiwan maintained similar import proportions since 2010, whereas Australia replaced Saudi Arabia in the top ten import sources Overall, contributions from other countries declined from 14.2% in 2010 to 12.4% in 2019, reflecting shifting global trade dynamics.
2.1.2.2 ASEAN imports of goods by trading partners
Table 2.5: ASEAN Imports of Goods by Trading Partners, 2010 - 2019
Table 2.5 displays data on the imports of goods within and outside the ASEAN region, by various trading partners, from 2010 to 2019
Between 2010 and 2019, ASEAN's imports increased significantly from $238.47 billion to $300.29 billion, reflecting steady regional trade growth During the same period, imports from non-ASEAN trading partners rose from $191.69 billion to $255.88 billion, indicating expanded international trade connections China remains ASEAN's largest trading partner, with imports valued at $305.41 billion in 2019, followed by Japan, which imported $116.12 billion worth of goods that year These figures highlight the importance of China and Japan in ASEAN’s trade landscape and underscore the region's growing integration into global supply chains.
The European Union and the United States were the leading importers, with imports valued at approximately 126.7 billion USD and 111 billion USD, respectively Other major trading partners, including South Korea, India, Australia, Russia, Canada, and New Zealand, also contributed significantly to global import volumes, highlighting the diverse and extensive nature of international trade.
The effect of import activities on CO2 emissions in the Association of
Import activities in ASEAN countries significantly influence the region’s carbon emissions profile While importing low-carbon goods and technologies can help reduce greenhouse gas emissions, increased importation of energy-intensive products may lead to higher emissions This effect is especially pronounced in countries that primarily rely on coal as their main energy source, highlighting the importance of sustainable import strategies to address regional climate goals.
Figure 2.9: The import value of Vietnam and the ASEAN-6 from 2015 to 2020
ASEAN countries are heavily dependent on import activities, highlighting significant reliance on foreign goods and services The import growth rates vary across the region, with some countries experiencing rapid increases, such as Vietnam, which saw its import value grow nearly 1.5 times in just six years Despite these gains, overreliance on imports presents risks, particularly amid global uncertainties like the COVID-19 pandemic and market fluctuations, which can threaten regional economic stability.
Figure 2.10: Global greenhouse gas emissions by sector for 2016; total at 49.4 BtCO2.
Source: Our World In Data, 2016
According to Our World In Data (2016), the energy sector is the largest contributor to global greenhouse gas emissions, accounting for 73.2%, with electricity, heat, and transport as key components Within this sector, iron and steel manufacturing, as well as chemical and petrochemical production, significantly drive emissions Transportation contributes 16.2% of global emissions, predominantly from road transport Industrial energy use accounts for 17.5% of emissions, while fugitive emissions from energy production and direct industrial processes contribute 5.8% and 5.2%, respectively These findings highlight the critical impact of the energy and manufacturing sectors on global climate change.
According to the Top Ten Imports of Goods in ASEAN, 2010 and 2019 figure shown in chapter two, it can be concluded that the import of
Policies to adjust import activities of ASEAN nations towards
2.4 Policies to adjust import activities of ASEAN nations towards reducing CO2 emissions
ASEAN is one of the regions most affected by climate change, highlighting the urgent need for regional environmental cooperation (ASEAN Secretariat, 2018) Since 1977, ASEAN has initiated the ASEAN Regional Environment Programme (ASEP I), aimed at fostering collaboration and information sharing among member countries on environmental issues This program, implemented from 1978 to 1982, laid the foundation for joint solutions to shared environmental challenges and significantly raised awareness among ASEAN nations about the importance of environmental protection ASEP I served as a critical milestone, paving the way for subsequent regional environmental initiatives and strengthening ASEAN’s commitment to sustainable development.
In 1981, ASEAN launched its first Environmental Programme and issued a declaration to promote regional cooperation in environmental protection This foundational statement outlined ASEAN’s goals to safeguard the environment and encouraged member countries to share information and collaborate on common environmental challenges Over the years, ASEAN has established key initiatives such as the ASEAN Strategic Plan of Action on the Environment (1994-2010), the Vientiane Action Programme (2004-2010), the Hanoi Action Plan (1999-2004), and the ASEAN Declaration on Environmental Sustainability, demonstrating a strong commitment to sustainable development and regional environmental resilience.
(2007), and The East Asia Summit Leaders' Statement on Climate Change, Energy and the Environment In recent years, ASEAN's cooperation in the environmental field has been growing and expanding
Hanif et al (2022) concluded that countries with large import values in theASEAN have higher CO2 emissions than those with smaller import values.
Indonesia and Thailand have the largest carbon footprints in the ASEAN region, largely driven by rapid industrial and service sector growth, insufficient clean energy adoption, and high reliance on imported goods Additionally, ASEAN-6 countries’ energy supplies often depend on environmentally harmful sources like coal and petroleum, significantly contributing to regional CO2 emissions The use of such fossil fuels in production and transportation further exacerbates emissions associated with imports, highlighting the need for cleaner energy transitions in the region.
Table 2.7: Renewable energy targets by ASEAN country
Country Renewable Energy Target Source
Brunei 10% renewable energy share in installed power generation 6th ASEAN Energy Outlook
Cambodia 3% of residential electricity demand from solar PV by 2035 6th ASEAN Energy Outlook
Indonesia 23% renewable energy share by
Government Regulation No 79/2014: National Energy Policy Lao PDR
30% renewable energy share of total energy consumption by 2025
Vision 2030 and 5-year power development plan (2016–2020)
Malaysia 31% by 2025, 40% in 2035, including large hydro
Report on Peninsular Malaysia Generation Development Plan 2020
Myanmar 12% share of RE in national power generation mix by 2030
Triple RE installed capacity by
2030 from 2010 level to 15.3 GW from 5.4 GW
National Renewable Energy Program (NREP) 2011: Sectoral Plans and Roadmap
Singapore 350 MWp of solar capacity by
2020 and at least 2 GWp by 2030
Thailand 30% RE share in total final energy consumption (TFEC) by
Alternative Energy DevelopmentPlan (AEDP) 2015
2036, including 15–20% renewable electricity in total generation
32% RE share in power generation by 2030 and 43% by 2050
Vietnam’s Renewable Energy Development Strategy up to 2030 with an outlook to 2050
The table highlights the renewable energy targets established by each ASEAN member state, underscoring the region’s significant commitment to sustainable development Despite being rich in renewable energy resources, Southeast Asia’s renewable potential remains largely underutilized According to a study by the National Renewable Energy Laboratory, Southeast Asia has enormous technical potential for land-based wind and solar photovoltaic (PV) power, with estimates of 29,967 GWp for solar PV and 1,383 GWp for wind power Leveraging these resources can significantly enhance the region’s renewable energy capacity and support its climate and energy goals.
ASEAN countries exhibit varying levels of commitment to environmental issues under the United Nations Framework Convention on Climate Change While Brunei, Laos, Malaysia, Myanmar, and Vietnam aim to achieve Net-Zero Emissions by 2050, Indonesia plans for 2060, Thailand by 2065, and Singapore targets the mid-21st century, Cambodia and the Philippines have yet to specify their national targets Additionally, commitments to phasing out fossil fuels and reducing methane emissions differ among member states, with only Singapore and Vietnam committing to both initiatives, whereas others have limited or no specific targets, highlighting the diverse climate action strategies within ASEAN.