Accelerating The Clean Energy Transition Across Asia-Pacific

By Weiguo Shan, Lead Shepherd, APEC Energy Working Group

The transition to clean energy is no longer a distant ambition—it is an urgent necessity. Across the Asia-Pacific, economies are feeling the growing pressure of climate change, energy security concerns, and technological disruption. The question is no longer whether to act, but how to accelerate the shift toward a more sustainable and resilient energy future.

The urgency of change
The world’s energy systems are undergoing rapid transformation, driven by three key forces. First, artificial intelligence (AI) is reshaping how electricity is managed, making power grids more flexible and efficient while optimising energy consumption across industries. With AI-powered data centers demanding ever-increasing amounts of electricity, the need for clean and efficient energy solutions has never been greater.

Second, the rise of electric vehicles (EVs) and sustainable fuels is pushing the transportation sector toward a low-carbon future. With more EVs on the roads and the growing adoption of alternative fuels such as biodiesel, sustainable aviation fuel, and green hydrogen, fossil fuel dependency is beginning to wane. Experts predict that we may soon reach “peak oil demand,” signaling a fundamental shift in the way economies power mobility and commerce.

Third, energy companies themselves are leading the charge toward decarbonisation. “Go green” is now becoming a voluntary action. Industry giants are proactively investing in clean technologies—electrification, hydrogen, carbon capture, and biofuels—positioning sustainability at the heart of their long-term strategies.

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The APEC energy agenda for 2025
Recognising these accelerating trends, APEC member economies have outlined three priority areas that will guide their efforts in 2025. The efforts of the APEC Energy Working Group will particularly focus on Energy Security Initiative and Just Energy Transition Initiative in line with this year’s host priorities of “Connect, Innovate and Prosper.”

Expanding clean electricity through utilising carbon-free energy technologies. The clean energy transition requires a diverse and technologically inclusive approach. While renewable energy sources such as wind and solar are critical, they alone cannot meet the complex demands of modern economies.

That is why APEC is stressing the important role of integrated energy mix that includes nuclear power, battery storage systems, low-carbon hydrogen, and abatement and removal technologies such as carbon capture technologies. These solutions are not only essential for reducing emissions but also for ensuring energy security in an era of rising demand.

Strengthening grid security for stable and reliable energy supply. A cleaner energy future cannot be realised without robust infrastructure to support it. As renewable energy supply expands, the importance of power grids increases.

The International Energy Agency estimated in 2023 that at least 3000 gigawatts of renewable power projects are waiting in grid connection queues, and that more than 80 million kilometers of grid need to be added or upgraded by 2040. This exhibits the urgent need to invest in modernising power grids to ensure a stable, reliable, and resilient energy supply—one capable of integrating renewables at scale.

Powering the future with AI-driven energy innovation. The digitalisation of energy management is opening new possibilities for efficiency and innovation. AI-driven analytics are helping economies optimise energy consumption, manage demand fluctuations, and improve grid stability.

The Republic of Korea, for example, is pioneering efforts to enhance energy data accessibility, promote AI diffusion, and support AI-powered energy companies. By harnessing the potential of AI, APEC economies can achieve smarter, more responsive energy systems that maximise efficiency while minimising waste.

The road ahead
Energy is the foundation of human society. The three agendas—clean electricity, grid security, and AI for energy—are organically interconnected, enabling a cleaner and more sustainable tomorrow.

At the 69th Meeting of the Energy Working Group, APEC economies reaffirmed their commitment to building a sustainable tomorrow. Through cooperation, innovation, and targeted investment, we are laying the groundwork for a future in which energy is cleaner, more secure, and more accessible.

The road ahead is challenging, but with shared resolve and strategic action, APEC is positioned to drive meaningful change—ensuring that the transition to clean energy is not only inevitable but also equitable and prosperous for every economy in the region.

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