Leaders of the Association of Southeast Asian Nations have vowed to strengthen collaboration in energy security and renewable energy development amid the escalating Middle East crisis, with analysts calling for swift actions in that direction.
ASEAN leaders have agreed to expedite the ratification of the ASEAN Framework Agreement on Petroleum Security and promote energy transition and operationalize the ASEAN Power Grid.
The bloc’s initiatives on energy security were among the highlights in the statement issued on Friday at the conclusion of the 48th ASEAN Summit in the central Philippine province of Cebu.
The summit was held as rising oil prices weigh on regional economies. The Asian Development Bank forecast inflation in developing Southeast Asia to rise from 2.3 percent in 2025 to 3.2 percent in 2026 on the back of upward pressures from higher energy and food production costs if the Middle East conflict is prolonged.
Analysts said that with most Southeast Asian countries dependent on energy imports, ASEAN must be able to expedite policies on regional energy cooperation as the war with Iran enters its 11th week.
“This turned out to be a very specifically themed summit, reflecting the acuteness of the repercussions of the Middle East crisis on ASEAN countries,” said Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs.
Lavanya Venkateswaran, a senior economist for ASEAN at Oversea-Chinese Banking Corporation in Singapore, said the bloc’s commitment on regional energy reflects a collective concern over the current situation in the Middle East.
However, these commitments “must also translate into swift actions considering the foreboding downside risks from geopolitics”, she said.
ASEAN leaders committed to strengthening regional energy security and resilience through enhanced regional cooperation and coordination. They are looking to diversify the supply of energy through measures, such as developing renewable energy, strengthening intra-ASEAN energy trade, accelerating biodiesel and bioethanol blending, and promoting the adoption of electric vehicles.
Philippine President Ferdinand Marcos Jr, this year’s rotating chair of ASEAN, said on Friday that ASEAN’s energy initiatives have to be enforced as soon as possible, but that the energy ministers are yet to meet and lay down a timetable.
Yeah Kim Leng, a professor of economics at Sunway University in Malaysia, told China Daily that the ASEAN leaders’ responses to energy security and financial resilience are fitting but their effectiveness depends on timely and implementable regional cooperation and coordination frameworks.
The ratification of the petroleum security agreement is crucial but it may not be achieved in time to cope with the current crisis, Yeah said.
“This framework would have enabled member countries to supply 10 percent of their domestic petroleum needs to members facing supply crisis, a stark reality confronting several member countries during the current global energy crisis,” he said.
Cooperation urged
Chan Wai-Shin, director of research at the Singapore-based Asia Research and Engagement, said ASEAN economies cannot optimize the energy transition in isolation, especially in light of the Middle East crisis.
Regional cooperation “makes much more sense economically”, Chan said, adding that the abundance of solar and wind throughout the region is complementary.
Meanwhile, strengthening power trade, cross-border interconnections and financial investment across the region would reduce overall system costs, enhance regional self-sufficiency and accelerate renewable deployment, he said.
Jayant Menon, a visiting senior fellow at ISEAS-Yusof Ishak Institute in Singapore, said the urgency of moving forward on renewable energy is the “only silver lining to come out of this whole crisis”.
“Renewable energy is not shockproof, but it creates some kind of national independence, because it can be nationally generated. This will be the positive legacy of this crisis,” he said.
ASEAN vows to strengthen energy shield
