UK and ASEAN launch clean energy pillar of Green Transition Fund
Tuesday, October 21 2025 - 08:24 AM WIB
The United Kingdom and the Association of Southeast Asian Nations (ASEAN) have officially launched the Clean and Just Energy Transition Pillar of the ASEAN-UK Green Transition Fund (GTF), marking a key milestone in their growing partnership on climate and energy cooperation.
The launch took place on October 17, 2025, during a high-level side event at the 25th ASEAN Energy Business Forum (AEBF) in Kuala Lumpur. The event was officiated by UK Ambassador to ASEAN Helen Fazey and Yanuar Fajari, Head of the Energy and Minerals Division at the ASEAN Secretariat.
ASEAN, now the world’s fourth-largest energy consumer, is projected to see energy demand increase by up to 41 percent by 2030, according to the 8th ASEAN Energy Outlook. The region will require around US$200 billion in annual energy investments to meet this demand, driven by rapid urbanisation and population growth, which have already pushed energy consumption above pre-pandemic levels.
The new Clean and Just Energy Transition Pillar is designed to support ASEAN Member States and Timor-Leste in achieving a sustainable and inclusive energy transition. It focuses on three main areas: clean power systems, green grids, and industrial decarbonisation — with an emphasis on ensuring affordability and energy security across the region.
“A just energy transition is central to ASEAN’s sustainable future, and the UK is proud to be a key partner on that journey,” Ambassador Fazey said in a statement. “Through the ASEAN-UK Green Transition Fund, we are bringing investment and expertise to support clean and just energy transitions — 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 the ASEAN region.”
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During the event, the UK Mission to ASEAN also unveiled the ASEAN-UK GTF project booklet, outlining the programme’s contributions to ASEAN’s energy transformation, including early-stage diagnostics, pilot initiatives, and capacity-building projects aligned with the ASEAN Plan of Action for Energy Cooperation (APAEC).
A panel discussion highlighted UK business and technical expertise in energy interconnection and finance, featuring speakers from National Grid, Standard Chartered Bank, Mott MacDonald, Arup, and the ASEAN Centre for Energy. The discussion explored opportunities for industrial decarbonisation, the ASEAN Power Grid, and coal transition strategies, emphasising the importance of public-private partnerships in mobilising clean energy investment.
A second session, involving representatives from Malaysia, Indonesia, Lao PDR, and regional financial institutions, focused on accelerating clean energy investment and strengthening financing mechanisms for the energy transition.
As ASEAN and the UK approach the fifth anniversary of their Dialogue Partnership in 2026, the launch of this new Pillar underscores their shared commitment to sustainable growth and regional collaboration.
The ASEAN-UK Green Transition Fund is the UK’s flagship programme to support ASEAN’s shift to a low-carbon and climate-resilient economy by reducing emissions, promoting green growth, and improving livelihoods across the region. It provides technical assistance to all ten ASEAN Member States and Timor-Leste in collaboration with the ASEAN Secretariat, regional centres, and sectoral bodies.
Editing by Reiner Simanjuntak