The UK Mission to ASEAN (the Association of South East Asian Nations] has launched the Clean and Just Energy Transition Pillar of the ASEAN-UK Green Transition Fund (GTF) at the 25th ASEAN Energy Business Forum (AEBF), held in Kuala Lumpur, Malaysia, from 15 to 18 October 2025.
Officiated by UK Ambassador to ASEAN Helen Fazey and ASEAN Secretariat Energy and Minerals Division head Yanuar Fajari, this initiative is a significant step in the UK’s climate and energy partnership with ASEAN.
ASEAN is currently the fourth-largest energy consumer globally, with its energy demand expected to increase up to 41% by 2030, according to the 8th ASEAN Energy Outlook.
The region is projected to need a minimum of $200bn each year in energy investments to accommodate its increasing demands.
In 2022, energy consumption surged 15.2%, exceeding levels seen before the Covid-19 pandemic. This spike is largely due to swift urbanisation and a growing population, driving the critical need to shift towards sustainable energy solutions to reduce climate risks and emissions.
As ASEAN progresses in its energy transition, the Clean and Just Energy Transition Pillar of the GTF is expected to provide targeted support to ASEAN member states and Timor-Leste.
The pillar focuses on clean power systems, green grids and industrial decarbonisation, while emphasising inclusivity and regional collaboration. This initiative aligns with ASEAN's goals to reduce carbon emissions while ensuring energy security and affordability.
UK Ambassador to ASEAN Helen Fazey stated: “A just energy transition is central to ASEAN’s sustainable future, and the UK is proud to be a key partner for ASEAN on that journey.
“Through the ASEAN-UK Green Transition Fund, we are bringing investment and expertise to support a clean and just energy transition across the region — from green grids and clean manufacturing to public-private partnerships.
“Together, we can harness the potential of clean energy and drive inclusive, climate-resilient growth across ASEAN region.”
At the AEBF, the ASEAN-UK GTF project booklet was also introduced, highlighting the programme's significant role in advancing the region's energy transition. The booklet details strategic initiatives such as initial diagnostics, pilot projects and capacity-building efforts that align with the ASEAN Plan of Action for Energy Cooperation.
The event saw panel discussions focused on innovative business models for coal transition, benefits of the ASEAN power grid and opportunities for industrial decarbonisation.
Delegates from Malaysia, Indonesia, the Lai People's Democratic Republic and regional financial institutions also discussed boosting investment in clean energy and strengthening public-private partnerships as a crucial mechanism for funding the energy transition.
As ASEAN and the UK near the fifth anniversary of their dialogue partnership in 2026, the introduction of the pillar is seen as a commitment to fostering sustainable growth and enhancing robust regional collaboration.
