JAKARTA – The Association of Southeast Asian Nations (ASEAN) needs US$29.4 trillion in funding until 2050 to implement the energy transition, as projected by the International Renewable Energy Agency (IRENA), Energy and Mineral Resources Minister Arifin Tasrif has said.

“According to IRENA, ASEAN requires $29.4 trillion in funding until 2050 to implement the energy transition under the 1.5 degrees Celsius scenario with 100-percent renewable energy,” Tasrif said in a statement on Thursday.

At the “Sustainable Energy Financing and Mobilization of Energy Investments to Ensure Energy Security and Achieve NDCs” event in Bali on Wednesday, he said ASEAN member countries have realized the importance of developing sustainable energy, building energy security, and handling climate change.

To succeed in the energy transition, several strategies are being carried out.These include developing a clear concept for sustainable financing, drafting a long-term roadmap for renewable energy, and implementing green technologies, he added.

Tasrif said ASEAN requires funding for various purposes, including the development of renewable energy plants, national and international energy transmission, distribution, storage, biofuel supply, electrification of vehicles, and covering operation and maintenance costs.

“Therefore, there is an urgent need for sustainable energy financing to support these steps. This can be achieved through various means, including blended financing in the form of grants, concessional loans at favorable terms, and co-investments,” he said.

Tasrif said public-private partnerships and the Green Climate Fund can provide additional resources for clean energy initiatives.

In addition to a conducive environment for investors, it is also important to mobilize investment in green energy, he said.

Offering incentives and issuing clear, supportive, and long-term policy frameworks and regulations can build investor confidence, thereby, creating a conducive investment climate, he added. (Antara)