Asia Green Energy Transition Is Leading Amid U.S. Policy Shift | Shale Magazine

Following the introduction of several executive orders by U.S. President Donald Trump, aimed at encouraging greater fossil fuel output and reining in the renewable energy industry, other countries around the world are viewing Trump’s presidency as an opportunity for them to overtake the U.S. in the green transition.

The U.K. recently announced plans to woo green energy investors as they seek alternative places to put their money following the introduction of sweeping tariffs by the U.S., as well as President Donald Trump’s attack on green energy. The government is offering cash and infrastructure improvements to companies looking to invest. It also announced plans to bring forward $399.4 million in funding for offshore wind farms. Similar efforts are being seen across the EU. 

Meanwhile, in Asia, several countries are working to decrease their reliance on fossil fuels by rapidly ramping up their renewable energy capacity. The Trump administration’s threat of tariffs has spurred greater action across the region, particularly in China, which is already a renewable energy, clean tech, and critical mineral powerhouse. 

A Strong Start to the Year

Early in the year, Asia established its position in the green transition by overtaking Europe and the U.S. in several sectors. Data from the energy think tank Ember showed that several large Asian countries, such as China, India, South Korea, and Japan all decreased their fossil fuel use and increased their clean power output by more than their international peers in the first three months of the year. 

While several Asian countries reduced their fossil fuel consumption for electricity in January, the U.S. and Europe both expanded their fossil fuel power generation. South Korea came out on top, reducing its fossil fuel electricity generation by 15% in January compared to the previous year, largely thanks to increased nuclear energy output. Meanwhile, India achieved a 25% increase in clean energy output this January over January 2024, with near-record production from solar, nuclear, and bioenergy plants. 

During this period, U.S. energy consumption increased. While the country’s clean electricity production rose by 6% in January and February, compared to the same period in 2024, there was also an increase in fossil fuel output, including a 20% rise in coal-fired electricity production compared to the previous year. 

Tariffs to Drive Asian Green Transition

In March and April, the Trump administration introduced sweeping tariffs across over 180 countries and a wide range of sectors. Trump has been back and forth on these tariffs, as he has since introduced a 90-day pause on certain tariffs while he discusses potential trade deals with several countries. While this has encouraged some countries to consider importing higher levels of U.S. energy products – to strike a better trade deal – most are looking to boost their energy independence to reduce their reliance on external powers. 

The Trump administration has announced plans to introduce tariffs on solar panels produced in Cambodia, Vietnam, Thailand, and Malaysia. Trump has cited “unfair practices” as the reason for the duties. If approved next month, the measures could see blanket 10% tariffs on most countries, as well as 145% tariffs on Chinese products. This could hit the U.S. hard, as China currently produces around 80% of solar panels globally, and manages 80% of every stage of the manufacturing process.

While this will also have a severe economic impact on manufacturers in Southeast Asia, it could encourage several countries in the region to accelerate their green transition. Ben McCarron, the managing director at Asia Research and Engagement, said that the tariffs could encourage China to “supercharge efforts” in regional markets and push for policy and implementation plans to “enable fast adoption of green energy across the region”, driven by its exporters.

The introduction of U.S. tariffs is spurring several Asian solar companies to develop their domestic and regional markets to avoid the heavy financial implications of exporting to the U.S. and EU. 

A Long-Term Transition Plan

While the Trump administration could have a significant impact on green transition progress in the mid-term, other countries around the globe are continuing with their momentum to achieve ambitious green energy, clean tech, and decarbonization goals. 

Alvin Chew, a Senior Fellow at the S. Rajaratnam School of International Studies in Singapore, said, “Trump will be U.S. president at most for another four-year term, but the climate change policies of many countries, especially in the [Asia] region, are long-term and stretch beyond 2030.” 

Meanwhile, Ajay Shankar, at the New Delhi-based think tank The Energy and Resources Institute, stated, “I do not think the other countries will change course in terms of whatever they were doing or are planning to do in terms of action on climate change.” 

While the Trump administration’s trade war and anti-renewable energy sentiment could cause short-term disruptions that affect clean energy markets and supply chains, it is unlikely to change the trajectory of other countries worldwide in their pursuit of a green transition. In fact, the U.S. tariffs could drive many Asian countries to develop their domestic and regional markets, as well as strive to achieve energy independence more rapidly. In addition, a movement away from climate funding could leave a gap that needs to be filled, allowing countries to step in and attract investors to alternative clean energy markets. 

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