Why is Asia the future of energy dynamics?

Over the past decade, most major energy forums have been held in various Asian countries, from Thailand to Malaysia and Japan to China. Starting on July 31, Beijing will host the three-day China Energy Summit and Expo 2024, where experts from around the world will discuss energy security, climate change and the low-carbon economy.

Focus topics will also include the roles of hydrogen and ammonia in meeting energy demand and energy security, as well as the outlook for the liquefied natural gas (LNG) market. During the recent third plenary session of the 20th Central Committee of the Communist Party of China, energy-related issues also took center stage. According to the resolution on comprehensively deepening reform to advance China’s modernization, China will “prioritize ecological protection, conserve resources and use them efficiently, and pursue green and low-carbon development.”

“We must work to improve ecological conservation systems and make concerted efforts to reduce carbon emissions, reduce pollution, promote green development and stimulate economic growth,” the document states.

China remains committed to expanding energy cooperation with countries around the world and is focusing its energy development on clean energy, such as green hydrogen. The world’s second-largest economy is gradually becoming a technological leader in the green energy sector, which will not only boost energy transformation in Asia but also set a global example for low-carbon development.

China has already begun to ramp up green hydrogen production as an important source of clean energy. Although the hydrogen industry is still in its infancy globally, China appears to have become a leader in producing the essential technology for green hydrogen. Germany is therefore looking to expand cooperation with Beijing in the field of hydrogen technology, while Malaysia is seeking China’s help in developing the green hydrogen industry at home.

Malaysian company Semarak Renewable Energy and China Hydropower (Malaysia) Company, a subsidiary of Power Construction Corporation of China (PowerChina), have recently signed an agreement to develop Malaysia’s first large-scale green hydrogen production project using floating photovoltaic power generation. More importantly, China’s Zhejiang Geely Holding Group, the world’s largest producer of methanol vehicles, intends to target Malaysia as the next market for its new lines of methanol-powered cars, which have lower fuel emissions than diesel.

In fact, the global energy transition from fossil fuels to renewables is, in many ways, heavily dependent on Asia. China’s rapid adoption of clean energy positions the country as a de facto leader in green energy, not just in Asia, but globally. That’s why at the 2024 China Energy Summit and Expo, Chinese officials and energy experts are expected to lead the conversation on the future of energy in Asia and beyond.

Asia is particularly important given that it is taking on a leading role in the global economy. The rapid expansion of Asian economies has brought Asian countries to the forefront in the production of electric vehicles and microchips. Asian nations are also becoming a leading force in technological innovation. As a result, Asia already consumes the largest amount of primary energy in the world, which is why energy flows, not only from Russia but also from Central Asia and the Middle East, will almost certainly continue to move eastward.

According to Parag Khanna, a leading global strategy advisor, the future belongs to Asia. That is the title of his book published in 2019. That year, a BP study showed that Asia, including China and India, will account for 43 percent of global energy demand by 2040.

Currently, it is India that appears to be benefiting from the EU’s “energy divorce” with Russia. Over the past two years, Russia has significantly increased its crude oil exports to India. EU refined oil imports from India hit record levels in 2023, indicating that New Delhi is importing Russian oil at a discounted price and then selling it to EU nations at full price once refined.

China, on the other hand, is on the verge of overtaking the European Union as the largest consumer of Russian natural gas. Moreover, as the world’s largest importer of LNG, China continues to build LNG terminals across the country. However, that doesn’t mean that Chinese strategists will focus all their efforts on gas imports.

It is no secret that Beijing’s long-term goal is to become energy self-sufficient. According to Goldman Sachs’ forecasts, that could happen by 2060. In the meantime, China will no doubt be looking to further develop its green energy production as it looks set to lead the global energy transition.

Finally, with significant events such as the 2024 China Energy Summit and Expo, Asian nations’ commitment to sustainable development and technological innovation underscores the region’s pivotal role in shaping the future of global energy.

Note: This article is republished from CGTN through a cooperation agreement between both parties for the dissemination of journalistic content. Original link.

Nkola Mikovic, a special commentator on current affairs for CGTN, is a freelance journalist in Serbia. He mainly covers Russian, Ukrainian and Belarusian foreign policy issues and writes for several online magazines.