BUSAN, August 28, 2025 - A new World Bank report, Green Horizon: East Asia's Sustainable Energy Future, outlines practical pathways to modernize and upgrade the region's energy systems to support power and industrial sectors-a key step for East Asia to sustain long-term growth, create jobs, and retain economic competitiveness. This report is a follow-up to the 2010 World Bank report, Winds of Change: East Asia's Sustainable Energy Future.
In 2023, East Asia produced 42 percent of global greenhouse gas emissions and was the largest consumer of coal worldwide. China, Indonesia, and Viet Nam-the three economies examined in the report-account for 80 percent of the region's emissions and 88 percent of its coal consumption, with the power and industrial sectors together responsible for 75-87 percent of energy-related emissions.
The report notes that without timely action, rising energy demand and continued coal use could affect the region's ability to meet its development and environmental objectives. Decarbonizing the power and industrial sectors together is essential, given their closely linked emissions profiles.
"East Asia stands at a critical juncture for its energy future. This report provides a practical roadmap for transforming both power generation and industry together-because they're deeply connected. This transformation will strengthen energy security, boost competitiveness, and create new jobs and market opportunities across the region," said Sudeshna Banerjee, Regional Practice Director for Infrastructure, East Asia and Pacific, World Bank.
The report estimates that decarbonizing power and industry will require over $10 trillion in investment through mid-century-$1.7 trillion for industry and $9 trillion for power generation and transmission. Early action on energy efficiency and electrification could deliver 65 percent of the needed emissions reductions at about 20 percent of the total cost, supported by the enabling policies.
Five priority actions are identified:
- Scale up renewable energy through competitive auctions and distributed generation;
- Modernize grids to integrate variable renewables and support electrification;
- Boost industrial energy efficiency and electrify production;
- Invest in innovation for hard-to-abate sectors (e.g., green hydrogen, CCUS);
- Mobilize private capital through blended finance, carbon markets, and enabling regulation.
Country-specific reforms are also critical. China could prioritize renewable energy grid integration and advanced technologies; Indonesia could adopt transparent renewable energy auctions and expand distributed generation; and Viet Nam could scale transmission and improve power purchase agreements to attract private investment.
The transition also offers immense opportunities to modernize production systems, improve energy security, and create new jobs in clean energy, advanced manufacturing, and emerging green industries across East Asia's economies.
Download the report here.
