Energy transition, energy efficiency, and green finance in the ASEAN region

Climate change and energy security are among the most significant challenges facing the global economy in our time. The energy sector has a pivotal role in achieving sustainable development. Most importantly, an improvement in energy efficiency or energy transition can be fostered by either an effective fiscal policy or sound financial institutions for green finance. In this chapter, the Association of Southeast Asian Nations (ASEAN) region is selected as the case study for our research. This region has experienced rapid growth and a significant increase in energy consumption over the last 2decades. While the consumption of non-renewables such as coal is much higher in this region than in others, the discussion of green finance allows us to identify how energy transition is transforming the region. We identify some policy measures initiated by the ASEAN governments to improve energy efficiency and to achieve a sustainable energy sector. We emphasize that the role of green finance will be significant in achieving these goals.