With private green investments in Malaysia more than doubling in 2024, Southeast Asia’s policymakers and corporate leaders are calling for stronger action to unlock growth and close the region’s climate emissions gap.
These insights, drawn from the Southeast Asia’s Green Economy Report 2025, anchored discussions at the ASEAN Green Shift Forum 2025, held in conjunction with the 57th ASEAN Economic Ministers’ Meeting in Kuala Lumpur. The forum was hosted by the ASEAN Business Advisory Council (ASEAN-BAC) and Standard Chartered, with Yinson and the Malaysia Carbon Market Association as knowledge partners.
According to the report, Southeast Asia could unlock an additional USD120 billion in GDP value by adopting a systems-based approach to green growth — while potentially closing up to 50% of the region’s emissions gap by 2030.
Asia Pacific remains heavily reliant on fossil fuels, contributing half of the world’s greenhouse gas emissions, with Southeast Asia alone accounting for 7.5%. The region faces a climate and transition finance funding gap exceeding USD50 billion, which experts warn could widen amid global economic uncertainty. While blended finance mechanisms are gaining traction, challenges persist in scaling impact.
Malaysia emerged as one of the region’s bright spots in 2024, recording:
-
A 100% increase in building-related green investments, including data centres.
-
A fourfold jump in solar power system investments.
-
USD400 million in new commitments for green hydrogen projects.
“Carbon markets worldwide are mobilising capital, accelerating decarbonisation, and anchoring net zero pathways. Thus, a regional carbon market, built at scale and through partnerships, can unlock unprecedented opportunities while strengthening resilience for all our communities,” said Tan Sri Nazir Razak, Chairman of ASEAN-BAC Malaysia.
He added that Malaysia, as ASEAN Chair in 2025, is determined to unite the region’s private sector under the belief that deeper integration drives inclusive and sustainable prosperity.
Standard Chartered Malaysia CEO Mak Joon Nien stressed that the urgency of climate action cannot be overstated, noting that 2024 was the hottest year on record, with global temperatures rising 1.55°C above pre-industrial levels.
“On one side lies today’s economy: traditional, carbon heavy, vulnerable, and on the other lies tomorrow’s economy: resilient, competitive, green – making the transition to a low-carbon future more imperative than ever,” he said.
Standard Chartered highlighted its international expertise and footprint across 54 markets, including all 10 ASEAN nations, as key enablers for advancing the low-carbon transition.
The ASEAN Green Shift Forum convened government and business leaders from across the region to discuss scaling green finance, accelerating clean energy adoption, and building sustainable supply chains. Organisers said the forum underscores the role of partnerships in catalysing action and delivering meaningful progress for the green economy.