China, Japan, Korea Compete for ASEAN Green Market

MANILA — China, Japan, and South Korea are ramping up competition to dominate Southeast Asia’s clean energy transition, with new research highlighting their expanding roles in the region’s green economy amid intensifying geopolitical and trade challenges.

A study by Zero Carbon Analytics (ZCA), released ahead of the 46th ASEAN Summit, reveals that while China remains the dominant force in clean tech investments and trade, Japan and South Korea are rapidly scaling up their presence with strategic green energy investments across the region.

Between 2013 and 2023, China led public clean energy investments in five key ASEAN nations — Indonesia, Malaysia, the Philippines, Thailand, and Vietnam — injecting over US$2.7 billion into renewable energy projects.

ZCA found that Japan emerged as the region’s largest public investor in solar and geothermal energy, pouring in approximately US$1.3 billion and US$142 million, respectively.

South Korea, meanwhile, carved out a niche as the top exporter of battery components to Indonesia and Malaysia, totaling nearly US$196 million over the same decade.

“Although China dominates overall clean tech investment and trade, South Korea has carved out a niche in battery component exports and Japan in solar investments,” said Yu Sun Chin, a research associate at Zero Carbon Analytics.

ZCA’s report will be formally presented during the ASEAN+3 Green Transition Webinar on May 20, 2025, just ahead of the ASEAN Summit in Malaysia. The online briefing will convene policy experts and energy analysts to explore regional pathways toward a resilient and integrated clean energy supply chain.

“Promising opportunities remain for these nations to expand their clean energy investments across Southeast Asia, a rapidly growing economic region with significant renewable energy potential,” Yu Sun added.

Among the most notable developments is Japan’s leadership in Just Energy Transition Partnership (JETP) programs, co-leading Indonesia’s US$20 billion JETP and supporting a similar initiative in Vietnam.

Japan also committed US$25 million to the Energy Transition Mechanism (ETM) to help retire coal plants in the Philippines, Indonesia, and Vietnam.

In clean transport, Japan is the largest supplier of electric vehicles and buses to the Philippines, while South Korea is the second-largest exporter of EV batteries to Indonesia after China.

Amy Kong, also a ZCA researcher, emphasized the urgency of scaling up green markets in ASEAN to meet the bloc’s climate targets.

“Renewables are rapidly becoming the cheapest power source in much of Southeast Asia, offering ASEAN a pivotal opportunity,” Kong said. “Expanding regional clean energy will help secure affordable energy to power the bloc’s rapid economic growth.”

The ZCA study estimates ASEAN needs US$180 billion annually in renewable energy investments to meet its long-term energy goals.

Southeast Asia’s response to rising green tariffs, trade volatility, and climate pressure is expected to be central to talks at the ASEAN Summit on May 26–27.

The findings suggest a shift toward more diversified partnerships, as regional players seek to balance China’s influence with alternative sources of capital, technology, and policy support from Japan, South Korea, and Australia.