Australia and China share key interests in Southeast Asia in the context of a global green transition and great power rivalry.

Through collaboration, both countries can strengthen their ties with Southeast Asian nations, build the foundation for a renewable energy transition in the region and demonstrate their commitment to international stability and multilateralism.

Southeast Asia is one of the world’s fastest growing regions. With surging energy demand and energy transition opportunities, Southeast Asia is emerging as a key destination for renewable energy investment, with China currently the leading investor. ASEAN aims to increase its share of renewable energy to 23% of its energy mix by 2025. In 2023, Brunei, Malaysia and Singapore joined a COP28 effort to triple global renewable capacity by 2030.

From 2019–23, China invested about  US$3 billion in renewable energy across ASEAN. For example, the Laos–China 500 kilovolt Interconnection Project enables China to import surplus electricity via a 183.5km transmission line from Laos. This agreement could also be integrated into the Laos–Thailand–Malaysia–Singapore Power Integration Project, which would launch regional energy connectivity and export hydropower-sourced electricity from Laos to the other signatories.

Australia has also strengthened its economic and green energy ties with ASEAN in recent years. Through the “ Aus4ASEAN Futures Initiative”, Australia launched a US$4.4 million energy co-operation program and has provided support for........

© Pearls and Irritations