Driving the expansion of clean energy across the region
It is crucial that our neighbours' pathway to net zero is paved with maximal opportunity and minimal burden. Borne alone, the capital costs of transitioning would be prohibitive for small and developing states.
Australia and Southeast Asia are alike in our vulnerability to climate change.
But we must also confront the fact that we contribute to its causes.
Collectively, Australia and Southeast Asia contribute a meaningful share of global emissions, particularly when we take accountability for our energy exports. To that extent, the fate of the climate partly hinges on whether or not we act to urgently reduce emissions.
Even from a self-interested perspective, we should reduce our role in producing the conditions of our own suffering. Given our sizable share of aggregate emissions, regional decarbonisation would tangibly improve global climate outcomes, thus reducing our own exposure to natural hazards.
The challenge, of course, is that the energy transition presents issues of environmental justice. While all states ultimately share an interest in decarbonisation, there is an inequity in expecting developing or recently developed states to sacrifice their progress in the interest of bailing out a problem caused largely by the Global North.
For that reason, it is crucial that our neighbours' pathway to net zero is paved with maximal opportunity and minimal burden. Borne alone, the capital costs of transitioning are prohibitive for small and developing states. Many countries in this position would continue to rely on pollutive fossil-fuel generation, locking in long-term emissions.
In the interest of both equity and pragmatism, Australia will therefore look to play a catalytic role in driving the region's energy transition. We will work to support the region's move towards cleaner sources of electricity generation—all while seizing economic opportunities along the way.
To do so, Australia will:
Promote Australian renewable energy exports. Through green hydrogen and renewable electricity exports, Australia will aim to significantly scale the region's supply of clean, reliable, and affordable energy. We will also work with regional partners to develop the enabling infrastructure to access Australian renewable energy exports, such as subsea cables and liquefied hydrogen terminals.
Invest in renewable energy generation regionally. To incentivise the transition away from fossil fuels, Australia will help fund the construction of new renewable generation capacity in Southeast Asia and the Pacific. Our main action in this regard will be to increase our capital contributions to the Australian Climate Finance Partnership (ACFP), a concessional finance facility managed by the ADB.
Advance cooperation on clean economy initiatives and policy. Following the success of our Green Economy Agreement with Singapore, Australia will work towards a series of similar, bilateral arrangements across the region. We will also cooperate with ASEAN on the development of renewable energy certificates, carbon accounting standards, and policy frameworks that support grid interconnectedness and cross-border electricity trading.
Help position Indonesia as a leader in electric vehicle and battery manufacturing. Indonesia's strategic push in these sectors will contribute significantly to regional emissions reduction, particularly in the pollutive transport sector. As a priority, Australia will aim to help catalyse the growth of Indonesia's electric vehicle and battery industries, including through investment, R&D collaboration, and cooperation on critical tech supply chains.
Encourage green manufacturing. Leveraging our increased contributions to the ACFP, Australia will work with the ADB to see an increase in concessional finance support towards the adoption of green manufacturing processes across Southeast Asia.
Scale up investment in transmission infrastructure. Electrification and inclusive grid access is crucial to facilitating the shift away from pollutive cooking fuels and traditional biomass energy use. Australia will therefore scale up financial support towards the development of transmission infrastructure regionally, with a focus on the Pacific. To do so, we will increase the capitalisation of the Private Infrastructure Investment Group and the Emerging Markets Impact Investment Fund.