Asian industries lift energy transition spending as demand grows

The region still relies predominantly on fossil fuels and moving to cleaner sources is crucial to its ability, and that of the world, to curb warming

Power-hungry industries across Asia are ramping up investments in the energy transition, according to engineering firm ABB, putting the high-polluting region on a tentative path to slashing emissions even as electricity demand surges.

Firms across sectors such as data centres, oil and gas, and infrastructure spent money on clean technologies, renewables, and grid modernisation among others, ABB found in a survey of thousands of participants.

More than half of those polled reported a 20 per cent jump in investment in the past year, outpacing the global average of 11 per cent, and that spending will continue to rise, it showed. The report did not provide further details.

Asia expects to see power demand skyrocket in the coming years thanks to energy-intensive industries and growing populations in some countries. The region, which accounts for about half of global emissions, still relies predominantly on fossil fuels and moving to cleaner sources is crucial to its ability, and that of the world, to curb warming.

But there are numerous hurdles. Almost two-thirds of respondents said grid instability was one of many challenges, and hoped for more cross-regional collaboration on grid infrastructure, the survey showed.

Globally, investments in the energy transition went above US$2 trillion for the first time in 2024, according to BloombergNEF. Spending on renewable energy development also reached a record US$386 billion during the first half of 2025. Still, investment would need to average US$5.6 trillion each year from 2025 to 2030, in order to get on track for global net zero by mid-century, according to BNEF.

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The ABB poll, which was conducted between May and June, surveyed 4,085 organisations across 12 Asian countries, from 10 industries including data centres, the oil and gas sector, property and infrastructure and more. BLOOMBERG