A new World Bank report, Green Horizon: East Asia’s Sustainable Energy Future, provides recommendations for modernizing energy systems in East Asia to support the power and industrial sectors. The report follows up on a 2010 World Bank study and focuses on China, Indonesia, and Viet Nam, which together account for most of the region's emissions and coal consumption.
According to the report, East Asia was responsible for 42 percent of global greenhouse gas emissions in 2023 and is the largest consumer of coal worldwide. The power and industrial sectors are responsible for between 75 to 87 percent of energy-related emissions in these countries.
The report warns that without timely action, rising energy demand and continued reliance on coal could undermine both development and environmental goals in the region. It emphasizes that decarbonizing both the power and industrial sectors is essential due to their interconnected 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 estimated investment needed to decarbonize these sectors by mid-century exceeds $10 trillion—$1.7 trillion targeted at industry upgrades and $9 trillion at power generation and transmission improvements. Early measures focused on efficiency gains and electrification could achieve about two-thirds of necessary emission reductions at one-fifth of total projected costs if supported by effective policies.
The report identifies five main actions: expanding renewable energy through auctions; upgrading grids; improving industrial efficiency; investing in innovation such as green hydrogen; and encouraging private capital through regulatory reforms.
Country-specific strategies are also outlined. For example, China is advised to focus on integrating renewables into its grid; Indonesia is encouraged to use transparent renewable auctions; while Viet Nam should prioritize scaling up transmission infrastructure.
The transition presents opportunities not only for reducing emissions but also for creating jobs in clean energy fields across East Asia’s economies.