SFC Correspondent Lei Ye, Lu Taoran, Li Yinong in Beijing、Shanghai
In this exclusive interview with SFC, Dato’Ir. Ts. Razib Dawood, Executive Director of the ASEAN Centre for Energy, discusses how ASEAN countries are advancing their ambitious carbon neutrality goals through stronger policy alignment and regional cooperation.
Highlighting the Centre’s role as a catalyst, knowledge hub, and policy advisor, Razib explains how ASEAN is working to harmonize national and regional energy objectives, promote unified standards, and attract sustainable investment, particularly from key partners like China, a global leader in clean energy manufacturing.
Addressing critical issues such as energy security, renewable energy storage, and emerging sectors like green hydrogen, Razib underscores the need for stable, affordable, and sustainable energy supplies to support ASEAN’s rapid economic growth.
SFC Markets and Finance: Many ASEAN countries have set ambitious carbon neutrality targets. How can the ASEAN Centre for Energy enhance policy coordination to speed up the clean energy shift?
Razib Dawood: One keyword to answer your question is “alignment” between the 10 member states, the national strategic objective and ASEAN’s regional strategic objectives. We must make sure those national targets align with regional cooperation targets. Almost all ASEAN member states have announced ambitious carbon neutrality or net-zero goals with various target to achieve between 2050 to 2065.
The ASEAN Center of Energy is supporting all member states in reaching their national and regional targets with our three important roles. Number one, we at the Center are advancing ASEAN’s energy goals. Number two, we are a hub for knowledge and data for the ASEAN member states. And number three, more importantly, we are a think tank and advisor when it comes to policy-making for ASEAN member states. So it is always our role to conduct policy research and analysis to support the policy-making process.
We want to invest in the ASEAN energy sectors. China is one of the countries undergoing a rapid clean energy transition in the world, and could bring its knowledge and best practices from its energy enterprises to the ASEAN region by investing in low-carbon energy projects to accelerate the achievement of carbon neutrality targets for each ASEAN country.
So all in all, with our role as a catalyst and think tank for the ASEAN member states, and coordinating alignment between national objective and regional objectives, we become the frontliner to demonstrate and share these policies to our development partners, China in particular, and all other development partners.
SFC Markets and Finance: What is China's role in the regionalization of the global energy chain? How can ASEAN promote unified standards for the new energy industry?
Razib Dawood: Let me address the issue of energy security in ASEAN. I think there are many events in the world that give us a wake-up call, tell us energy security is very important. Because energy is the lifeblood for the economy. I can call this the oxygen for the economy. We aspire to become the fourth largest economy in the world, so we need a lot of energy to power the economy. We see how important energy security is that any event that impact the continuity or interrupts energy supply has a big impact on ASEAN economic growth. So we take energy security very seriously.
And regarding supply chain, I think China has a very strong energy industrial supply chains. We acknowledge that, particularly in the integration of low-carbon and efficient energy sources, and new technology. So as a country dominating global clean energy manufacturing, particularly solar and wind, China has the potential to take the lead and boost the region's energy security through renewable energy.
So in supporting a unified regional standard and rules for new energy industry, which aims to ensure resilience and sustainability in the region, ASEAN is working on strengthening cross-border trade and renewable project financing. So many ASEAN member states are also exploring mechanisms such as renewable energy certificate and carbon credit. Again, working as a regional cooperation, we aspire to harmonize and standardize technical standard and so on. So I would say it is a work in progress, bilaterally and also multilaterally among 10 ASEAN member states, to send a signal to potential investors that we operate as one, with harmonized standards.
SFC Markets and Finance: Which subsectors, like energy storage, photovoltaics, or hydrogen energy, have the greatest growth potential besides electric vehicles?
Razib Dawood: I think if you combine the resources of renewable energy such as wind and solar, the next best technology is energy storage. So you need strong technology to store renewable energy, what we term as wearable renewable energy. So with a combination of energy storage, we can provide a reliable energy supply to replace the conventional hydrocarbons from coal and gas technologies. And of course, we should not forget the future potential of green gas.
You mentioned hydrogen, green hydrogen. So at the moment, it is promising, but maybe the cost is too high here. But we don't rule out its future potential. But immediate is the storage, not only the chemical storage, we also look at other alternative, what we call pumped hydro storage, that can help firming up these renewable energy resources from wind and solar to ensure we not only provide clean energy, but also a reliable and stable supply to power domestic, industrial and commercial (demand).
Because importantly, as I mentioned, we are growing rapidly, we have to make sure the supply of energy remains stable and uninterrupted, because the cost of disruption to our economic is huge. So in transitioning our energy from high-carbon to low-carbon, we make sure we address all angles, in terms of energy security, energy affordability, as well as environmentally sustainable supply of energy. These are important in our mind as we grow our economy rapidly.
SFC Markets and Finance: How can small and medium-sized Chinese new energy enterprises find market opportunities in ASEAN? Does ASEAN offer different policy supports?
Razib Dawood: So there are practical projects to achieve and we also have to address the viability of those projects. We do realize the amount of capital required to finance these projects. So you have to make sure we have consistent policies, to ensure the investor their return and so on and so forth.
Going back to the core challenges for enterprise and policy support, many enterprises that enter ASEAN find understanding the regulatory frameworks of ASEAN member states can be very challenging to them. This is due to the unique characteristic of each country, and therefore policies and standards sometimes vary among those member states, according to their national policies and their local needs.
In this subject, the ASEAN Center for Energy could help in coordination and facilitation. We encourage policy harmonization and provide dialogue and forums constantly, working on capacity building. However, on a day-to-day basis, we encourage enterprises must still coordinate directly with related institutions in the individual country. But of course, they can come to the center to get information.
Having said that, the center is always continuing our effort in terms of harmonizing, standardizing those policies, incentives and programs among 10 ASEAN member states. That's what we do. We call it “bread and butter” to encourage cooperation, and to give a very good and strong signal to the world investor about what kind of environment and climate for foreign direct investment ASEAN provides, for investors that come and invest in the ASEAN region, to guarantee the return and to secure, and to address many risks of their investment.
SFC Markets and Finance: How can ASEAN promote unified ESG standards to support sustainable cooperation in new energy?
Razib Dawood: This is something that we see very paramount. We keep discussing consistency and the harmonization of standards, unified policies, and so on. I think we in ASEAN region, we do realize that to attract capital and investment, we have to have these policies and so on here.
I think this issue will actually be one of the key concepts in our next Blueprint for Regional Energy Sector Cooperation. We would like to ensure that in transforming the regional energy system, it also empowers the people for a prosperous ASEAN community, which include the creation of energy jobs and employment.
We are moving to that direction, in ensuring that enterprises optimize local talent at the management level. It is crucial that they engage in local ecosystem development, such as local universities and industry associations, the adaptation of local recruitment process and working culture might also be helpful.
So most importantly, perhaps, there is opportunity to develop through training and upskilling program.
Chief Producer: Zhao Haijian
Supervising Producer: Shi Shi
Editor: Li Yinong
Reporter: Lei Ye, Lu Taoran, Li Yinong
Photography: Lei Ye
Video Editor: Cai Yutian
New Media Coordination: Ding Qingyun, Zeng Tingfang, Lai Xi, Huang Daxun
Overseas Operations Supervising Producer: Huang Yanshu
Overseas Content Coordinator: Huang Zihao
Overseas Operations Editors: Zhuang Huan, Wu Wanjie, Long Lihua, Chen Quanyi
Produced by: Southern Finance Omnimedia Group
