As the war in the Strait of Hormuz continues to create havoc, Asia remains the worst hit by the global energy crisis. Whether it's a large economy like Japan or China, or a struggling economy like Sri Lanka or Pakistan, the same fate holds. Even nations that produce oil, like Indonesia and Malaysia, are struggling as the national energy demand surpasses production.
Nearly 90% of oil and gas from the Strait flew to Asia before the conflict. The loss of one of the most critical energy flows is causing significant pain for ordinary people, businesses, and policymakers. The lack of cooking gas, fuel rationing, and rising fuel and electricity costs hurt families and communities. Farmers struggle to obtain fertiliser, and business operations are on hold due to a lack of petrochemical raw materials.
Political leaders are already facing blowback due to the rising cost of importing alternative fuels. Public frustration is obvious amid rising prices across the board, including for daily essentials. The economic headaches will last much longer, with industrial and agricultural losses likely to continue even after the war ends and energy flows resume.
All this could've been prevented, or at least mitigated, had Asia prioritised renewable energy. Unfortunately, in the share of power generation, Asia lags Europe and Latin America, where the share of green energy is nudging above 50% on average. On average, Asia is some 20% behind.
Despite grand national political gestures, policy commitments, investment, and incentives for green energy have been slow and sporadic. The influence of the global fossil lobby, short-term profiteering by corporations, and populist politics have stalled progress. Multilateral banks and private investors have also been slow to respond, particularly in countries where weak government policies and high project risks prevail. And some financiers preferred to keep funnelling funds to harmful fossil fuels.
Despite climate movements' wins in pushing policies, court rulings calling for climate action, and clear evidence from global and regional think tanks, progress has been slow. As a frustrated progressive parliamentarian once told me at a democracy symposium, "Asia will always be Asia. Business as usual. We will take our time, and change comes at snail's pace."
To be clear, the continent has made progress. It is the world's fastest-growing region for renewables. In 2025, there was roughly 20% growth in added capacity. Where it pales in comparison to more progressive regions is in capacity growth relative to overall demand, with the region comprising the world's largest population. This makes our ambitions for progress too slow.
Asian leaders like China, India, Japan, and Vietnam, at their best, produce around 30-40% of their electricity from renewables today. In countries such as Spain, Portugal, Germany, and Brazil, the figures could be as high as 50-60%. It would take Asia until the end of the decade to match Europe's current production. This means even by 2030, Asia will still lag by 10-20%.
The comparison with developed European nations may seem unfair, given that many Asian countries are growing economies. But the flip side is that if the region is to achieve sustainable prosperity, committing to renewables seems the best bet. It also means energy independence, breaking away from dependencies that go back to colonial times. Given the progress made by countries such as China and India, there's also a stronger case for strengthening South-South corporations.
As of 2025, about 85% of renewables are cheaper than fossil fuels, and the costs of production and battery storage have dropped drastically in the last fifteen years. By leveraging natural resources, like the year-round sun across South and Southeast Asia, the nations can save significantly by reducing fossil fuel imports. Of the solar and wind potential that's estimated in thousands of Gigawatts, only a minute fraction is currently used or likely to be used in the coming decade.
The arguments aren't just about the economy and sovereignty. Nations such as Bangladesh and the Philippines are among the most disaster-prone in the world. Cities like Bangkok, Delhi, and Jakarta are among the most polluted, with heavy fossil fuel usage as a key contributor. Renewables may offer Asians better safety and quality of life, and it's time for bold policy, investment, and determined action.
Nipuna Kumbalathara is Communications Lead at CIVICUS.
