October 24, 2025
4 mins read

UK and ASEAN launch Green Transition Fund

UK deepens energy cooperation with ASEAN through launch of Clean and Just Energy Transition Pillar under the Green Transition Fund…reports Asian Lite News

The United Kingdom has strengthened its partnership with Southeast Asia on climate and energy collaboration with the launch of the Clean and Just Energy Transition Pillar of the ASEAN-UK Green Transition Fund (GTF). The initiative was unveiled by the UK Mission to ASEAN at a high-level side event during the 25th ASEAN Energy Business Forum (AEBF), marking a major milestone in the UK’s strategic energy engagement with the region.

The launch ceremony was officiated by the UK Ambassador to ASEAN, Helen Fazey, and Yanuar Fajari, Head of the Energy and Minerals Division at the ASEAN Secretariat. The new initiative aims to accelerate Southeast Asia’s shift towards clean, affordable, and resilient energy systems while ensuring that the transition remains equitable and inclusive.

ASEAN is now the world’s fourth-largest energy consumer, according to the 8th ASEAN Energy Outlook, with demand projected to rise by as much as 41 per cent by 2030. The region’s energy consumption grew by 15.2 per cent in 2022, surpassing pre-pandemic levels as economies rebounded. This growth, driven by rapid urbanisation and a rising population, is placing mounting pressure on governments to balance economic expansion with climate commitments.

To meet its energy needs sustainably, ASEAN will require an estimated 200 billion US dollars in annual investment by the end of the decade. The UK’s new initiative seeks to support this goal by providing technical and financial assistance, sharing policy expertise, and fostering collaboration between governments and private sector partners.

The Clean and Just Energy Transition Pillar will focus on three key workstreams — clean power systems, green grids, and industrial decarbonisation. These will be underpinned by a strong emphasis on inclusivity, ensuring that communities and workers benefit equitably from the shift to cleaner energy sources.

UK Ambassador to ASEAN Helen Fazey said a just energy transition lies at the heart of ASEAN’s sustainable development ambitions, and the UK remains committed to being a key partner in that effort. “A just energy transition is central to ASEAN’s sustainable future, and the UK is proud to be a key partner for ASEAN on that journey. Through the ASEAN-UK Green Transition Fund, we are bringing investment and expertise to support a clean and just energy transition across the region — from green grids and clean manufacturing to public-private partnerships. Together, we can harness the potential of clean energy and drive inclusive, climate-resilient growth across ASEAN region,” she said.

The event also marked the unveiling of the ASEAN-UK GTF project booklet, which details the programme’s strategic contributions to ASEAN’s energy transformation. The booklet outlines early-stage diagnostics, pilot projects, and capacity-building initiatives designed to align with the ASEAN Plan of Action for Energy Cooperation (APAEC), the region’s flagship energy framework.

Participants at the event included leading figures from the UK and ASEAN energy and finance sectors, who shared perspectives on regional energy challenges and opportunities. Speakers included Rob Rome, Director of Commercial, Customer and Regulation at National Grid; Rino Donosopoetro, CEO of Standard Chartered Bank Indonesia and ASEAN Cluster Markets; Philip Napier-Moore, Energy Sector Leader at Mott MacDonald; Dr Jhan Chan, Associate Principal and Southeast Asia Energy Leader at Arup; Nadhilah Shani, Manager of the Power and Interconnection Department at the ASEAN Centre for Energy; and Natasha Kyte, Trade and Economic Counsellor at the UK Mission to ASEAN.

A regional energy regulator also participated in the discussions, which focused on emerging business models for coal transition, the potential of the ASEAN Power Grid (APG), and pathways for industrial decarbonisation. The panellists underlined the vital role of public-private partnerships in attracting and scaling up investment for clean energy infrastructure.

A second panel brought together representatives from Malaysia, Indonesia, Lao PDR, and regional financial institutions. This session explored how to accelerate financing for clean energy projects and strengthen collaboration between the public and private sectors to mobilise the capital required for large-scale energy transformation.

Speakers emphasised that the clean energy transition in Southeast Asia must be both environmentally sustainable and socially inclusive, ensuring that communities dependent on traditional energy industries are not left behind. The UK’s contribution through the GTF aims to facilitate knowledge exchange and investment, helping ASEAN Member States and Timor-Leste design policies that attract international capital while advancing their net-zero goals.

The ASEAN-UK Green Transition Fund forms part of a wider effort to deliver on the UK’s Indo-Pacific strategy and strengthen climate cooperation with key regional partners. It aligns closely with ASEAN’s broader green growth agenda and supports the bloc’s aspirations for energy security, economic resilience, and sustainable development.

As ASEAN and the UK approach the fifth anniversary of their Dialogue Partnership in 2026, the launch of this new Pillar reaffirms their shared commitment to advancing sustainable growth and regional energy cooperation. The initiative signals a deepening of ties between Britain and Southeast Asia, grounded in mutual priorities around climate action, investment in clean technologies, and building a just transition that benefits all communities across the region.

The Clean and Just Energy Transition Pillar of the ASEAN-UK Green Transition Fund is expected to serve as a cornerstone for future collaboration, supporting ASEAN’s journey towards a low-carbon energy future while positioning the UK as a long-term strategic partner in the region’s green transformation.

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