2025 is an interesting year for ESG.

The new Trump administration shows that they have very different plans for ESG, which will have significant global impacts. As we monitor new developments, remember that ESG is just one part of the green economy, the latter continues to thrive in sunny South East Asia.

Celebrities coming to town - A new utility-scale renewable energy platform, called Sustainable Asia Renewable Assets (SARA), aims to build a 500-megawatt portfolio of greenfield renewable energy projects across Southeast Asia.

SARA is set up by reputable institutions British International Investment (BII), Dutch entrepreneurial development bank FMO, and Swiss-based energy transition investment manager SUSI Partners within the SUSI Asia Energy Transition Fund (SAETF).

BII and FMO are investing $70 million and $50 million respectively through co-investment commitments to SARA and top-up commitments to SAETF. SUSI has more than doubled the size of its Southeast Asia-focused strategy, increasing the fund from $120 million to $259 million due to commitments from existing and new investors.

The initial focus of the co-investment platform is on getting greenfield renewable energy projects into construction and operation. The Dam Nai wind farm in Vietnam, acquired by SUSI in October 2024, will become SARA's cornerstone asset.

Southeast Asia is projected to account for more than a quarter of global energy demand growth until 2035, driven by its growing position as a global manufacturing and industry hub. Nearly 80% of Southeast Asia's energy demand rise since 2010 has been met by fossil fuels, making climate investments in the region highly impactful.

Cross-border Renewable Energy Certificate trading - In Asia, Renewable Energy Certificates (RECs) could boost the viability of costly cross-border clean power projects. Singapore is developing a framework to recognize RECs from cross-border electricity transactions.

This framework aims to prevent double-counting and ensure transparency. Some industry players believe ASEAN is well-placed to start such cross-border REC transactions due to the proximity and similar sustainability goals of member countries.

RECs generated by cross-border projects would be treated similarly to those produced within Singapore. This would encourage Singapore-based off-takers to purchase green energy to offset their in-country consumption.

Current policy and regulatory gaps hinder recognizing cross-border RECs within international frameworks like RE100. The new framework could serve as a model for other regions to establish credible cross-border REC transactions.

All the problems with EV - Indonesia's electric vehicle (EV) two-wheeler (2W) market has been rapidly growing, driven by government subsidies. These subsidies have made EVs more affordable, encouraging market interest despite typical concerns about performance and reliability.

Larger cities like Surabaya see more EVs on the road, but gasoline-powered motorcycles still dominate. One major issue is that some EV models, often rebranded imports, aren't well-suited to Indonesia's roads or lack the necessary performance standards. The subsidy program has hit its quota and is currently on pause, raising questions about sustaining momentum in the EV sector.

Some EV brands use fully knocked down kits from China, highlighting a lack of enforced standards in the subsidy program. Poor performance of some EV models has caused skepticism among prospective buyers, as traditional motorcycles tend to be more reliable. The Indonesian government plans to keep extending incentives to ensure continued growth in the EV market.

Yet, performance issues may still hinder the expansion of 2W EVs, unless addressed by the industry and government. The future of EVs in Indonesia remains uncertain without consistent subsidies and improvement in performance standards

More green waves this way

China-US tech trade intensifies - China is planning new export controls on critical technologies essential for electric vehicles (EVs), including lithium extraction and battery cathode production. These export controls could significantly impact other countries' access to key materials needed for EV battery manufacturing

so Philippines, Chile, Congo took the opportunity - Minerals-rich countries compete to take piece of the global green pie.

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Wish you a wonderful day.