The energy crisis is accelerating low-carbon transition in emerging economies
15 hours ago
- The energy crisis has limited impact on boosting fossil fuel investments, mainly reinforcing existing low-carbon trends in emerging Asia.
- Coal use temporarily rises but no new capacity investments; China's coal demand actually declined despite increased electricity consumption.
- Solar panel adoption surges in Pakistan, the Philippines, and ASEAN countries, driven by household demand and facilitated by tax exemptions.
- Electric vehicle sales accelerate in Southeast Asia, with some countries achieving penetration rates surpassing the EU.
- China is a major beneficiary due to its dominant global position in solar and electric vehicle supply chains, with exports rising significantly.
- The crisis highlights a paradox: while reducing hydrocarbon reliance, it raises sovereignty concerns due to China's dominance in low-carbon technologies.