The report is an important contribution to understanding the pathways to intertwine energy and development imperatives in East Asia. It outlines pathways to decarbonize the power and industrial sectors¡ªwhich together contribute 75¨C87 percent of emissions¡ªthrough greater efficiency, electrification, renewable energy, and advanced technologies such as green hydrogen and carbon capture, utilization, and storage.
Drawing on original data and in-depth assessments of China, Indonesia, and Viet Nam, the report identifies viable technical pathways, discusses implementation challenges, and offers a comprehensive policy package to accelerate the transition to net-zero industry.
The report presents five global case studies that were analyzed to assess the enabling policies and support frameworks behind successful industrial decarbonization initiatives across major energy-intensive sectors. It builds on the World Bank¡¯s 2010 Winds of Change study, combining research, consultations, surveys, and modeling to map out investment needs and policy priorities.
Why It Matters?
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 region consumes 40 percent of global primary energy, emits 40 percent of global greenhouse gases, and remains heavily dependent on fossil fuels for industrial energy use;
- presents a strategic opportunity to accelerate the energy transition. It can deliver a triple dividend: productivity gains, green investment and jobs, and improved public health;
- Because the power and industrial sectors are intertwined, increasing electrification in the industrial sector will push up demand for power; for that reason, greening the power sector is a prerequisite to decarbonizing the industrial sector;
- Investments to green the power sector and achieve industrial decarbonization are estimated at US$ 10.7 trillion by mid-century across China, Vietnam, and Indonesia.
