In context of our planet’s dynamics and its consequences, global, regional and national Asia’s energy transition is critical. The evolution and complexity of multilateral cooperation need to be examined from multiple vantage points. Energy transition is imperative given energy dependence on coal, fuel, and other fossil-based sources[mk1] (given over a trillion of subsidies) have phenomenal consequences for climate. Delayed action enhances the climate risk and cost of transitioning to renewables.

Global climate inaction costs trillion of dollars far exceeding the investment needed for climate action that could cost up to a third of global GDP in this century. By 2023 global immediate losses from disasters ranged around USD 368 billion, while over business-as-usual scenarios, economic damage can potentially rise to over USD 2,000 [mk2]trillion (Climate Policy Initiative, 2024). The economic cost of health impacts of climate change is projected to reach between USD 8.6 to USD 15.4 trillion by 2050. Climate change has serious consequences of food insecurity and people’s health.

Climate action is urgent and if effectively steered and coordinated at the Conference of Party (COP) level would lend hope to humanity.

First, the fracturing fault lines are stress testing the foundations of international cooperation in ways not seen since the end of the Second World War. Faltering leadership and shifting commitments among global powers are straining global governance frameworks and the cooperative arrangements that have underpinned development and climate action for decades.

Yet multilateralism is resilient. The question is not whether cooperation will continue, but who leads it and what form it will take. For Asia, this is not a crisis but a clarion call.

Consider the paradox we inhabit: geopolitical fragmentation threatens to slow decarbonization by inaction and has limited the diffusion of technologies and raised transition costs. However, Asia has emerged as the undisputed center of clean energy manufacturing, deployment, and innovation. China and other Asian economies have added renewable capacity at an unprecedented scale in recent years—a statement of where momentum and capability now reside in the global energy transition.

Second, there is great divergence between transition aspirations versus energy realities. JP Morgan: Assessing Climate Change Risks: Energy Transition report, 2025 offers a sobering reality check: despite unprecedented investment, the renewable share of total final energy has risen only gradually.

The transition should be measured in decades, not years. Why this disconnect between ambition and reality? McKinsey’s Global Energy Perspective, 2025 underscores the need for cost competitiveness and pragmatic approaches over aspiration alone. Their “hard stuff” catalog underscores grid modernisation, critical minerals, hydrogen infrastructure, and carbon capture and reminds us that physical constraints must be overcome.

An analysis for Asia reveals both the scale of opportunity and the magnitude of the challenge. The region could unlock trillions in revenue opportunities by 2030 from renewables and clean technologies, but must multiply annual investment—on the order of trillions—to align with net-zero pathways.

The infrastructure gap is staggering. The Asian Development Bank’s Energy Transition Mechanism pilots—most advanced in Southeast Asia—are expanding, with additional countries exploring participation. Flagship initiatives will need more predictable financing and stronger implementation strategies to reach breakthrough scale.

Third, it’s urgent to finance the unfunded mandate. At COP29, developed countries signaled intent to increase climate finance—figures discussed include at least USD 300 billion annually by........

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