The World Bank has released a new report, "Green Horizon: East Asia’s Sustainable Energy Future," that examines how East Asia can move toward cleaner energy and industry. The report focuses on China, Indonesia, and Viet Nam, analyzing ways to decarbonize the power and industrial sectors. These two sectors together are responsible for 75–87 percent of emissions in the region.
The study identifies technical options such as increased efficiency, electrification, renewable energy use, and advanced technologies like green hydrogen and carbon capture. It also outlines policy recommendations to help these countries transition to net-zero industry.
"East Asia is pivotal to the world’s decarbonization efforts. The region’s contribution to global emissions is large and expected to rise alongside economic growth and industrialization. A shift to clean power and low-carbon industry can strengthen competitiveness, modernize production systems, enhance energy security, and create significant new employment opportunities across East Asia’s economies. The choices made in East Asia will shape the global energy and industrial landscape for decades to come."
The report draws on original data from China, Indonesia, and Viet Nam as well as five international case studies that explore successful policies for reducing industrial emissions. It builds on earlier research from the World Bank's 2010 Winds of Change study by using surveys, consultations, modeling work, and investment analysis.
According to the report, East Asia consumes 40 percent of global primary energy resources and emits 40 percent of worldwide greenhouse gases. The region remains heavily reliant on fossil fuels for its industrial sector. The authors argue that decarbonizing industry presents a chance not only for environmental benefits but also for productivity gains, increased green investment and jobs, and improved public health.
Because power generation and industry are closely linked—especially as more factories electrify—decarbonizing both at once is necessary. This means clean electricity is needed before industries can fully reduce their carbon footprint.
Coal remains a major part of the region's power supply; East Asia accounts for 69% of all coal-fired power generation globally. Electricity demand in the area is expected to rise by 25% by 2030—and more than double by 2060—as economies grow.
While there is significant potential for renewables—about 65,000 GW of solar, wind, and geothermal resources—deployment outside China remains limited so far.
Investments required for this transition are substantial: an estimated US$10.7 trillion will be needed by mid-century across China, Vietnam, and Indonesia—with US$9 trillion going into clean power projects alone.
The World Bank’s policy package aims to address these challenges with coordinated strategies targeting both sectors at once.
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