Summary
In 2023, 84% of ASEAN’s energy supply was dominated by fossil fuels, supporting energy security and economic growth but intensifying climate risks. All ASEAN Member States have submitted their Nationally Determined Contributions (NDCs), with most pledging net zero emissions. However, current measures remain insufficient, with climate change potentially reducing GDP by 11% and displacing 87 million people by 2100. Even by 2045, fossil fuels may account for 41% of energy supply.
ASEAN must reduce emissions while expanding renewable energy. “Green LNG,” particularly methane-reduced LNG, offers a transitional solution. Reducing methane emissions in the LNG value chain requires having a comprehensive emission inventory system to detect methane emissions, and to plan mitigation measures accordingly. Overall, 84% of the region’s emissions could be addressed at a net negative cost, assuming the gas is monetised at local gas price, though adoption remains slow due to regulatory and market challenges.
This report proposes three key recommendations for ASEAN’s consideration: (1) develop targets and/or regulations on methane emissions in the oil and gas sector at both national and regional levels; (2) establish an ASEAN green LNG certification programme; and (3) continue to share and align international best practices on methane emissions and green LNG.