BRICS decided to contribute to ASEAN's transition to a green economy

South Asia is facing increasing risks due to climate change, but at the same time it gets a chance to switch to renewable energy. China believes that BRICS can play a key role in supporting the countries of the Association of Southeast Asian Nations (ASEAN). This was reported on September 9 by the China Daily newspaper.

"Even countries rich in natural resources are feeling the devastating effects of climate change. But this vulnerability is fraught with opportunities. Indonesia has a huge potential for renewable energy, which can be unlocked through pragmatic regional cooperation and strategic partnership," the article says.

Indonesia, which has about 40% of the world's geothermal energy reserves and has the potential to accumulate up to 200 gigawatts of solar energy, aims to increase the share of renewable sources in the energy mix to 31% by 2050 and achieve carbon neutrality by 2060. For these purposes, the government has allocated $20 billion to the Fair Energy Partnership initiative.

However, despite the huge potential, only 13% of the country's energy production comes from "green" sources, while coal accounts for 65%. The development of hydropower requires a balance between ecology and economics, and the high cost of exploration and complex regulation hinder the geothermal sector.

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How can an organization accelerate integration?

Other States in the region are experiencing similar difficulties. There are three key mechanisms in place in ASEAN: A taxonomy of sustainable financing, a smart energy grid, and an Action Plan for Energy Cooperation for 2026-2030, which aims to increase the share of renewable sources to 35%.

Nevertheless, Indonesia and Vietnam are forced to increase their use of coal to support economic growth, which is complicated by weak national networks and lack of financing. National priorities and regulatory contradictions further hinder cooperation.

As noted in the article, the "ASEAN approach" is needed to break the impasse — a flexible model in which some countries can move forward faster than others, as stipulated by the "ASEAN minus X" formula. This mechanism makes it possible to avoid blocking progress, even if it is not possible to reach a consensus among all members of the block.

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What are the priorities of the unification states now?

This is where BRICS can play a role. It clarifies that the alliance is able to become a bridge of technology and investment: its research centers can help reduce the cost of exploration, develop sustainable agriculture and the climatic stability of coastal regions. Chinese companies can invest in modernizing transportation and infrastructure for electric vehicles in Indonesia, Brazil can share its experience in bioenergy, and the New BRICS Development Bank can provide green financing for geothermal, wind farms, and smart grid projects in Southeast Asian countries.

In addition, universal models are not applicable here: solutions must be developed jointly, taking into account the specifics of the countries of the region. This is the only way to build a Southeast Asia where sustainability and prosperity go hand in hand.

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With the growth of trade turnover, the parties will switch to payments in national currencies faster.

On August 17, the Russian Foreign Ministry reported that Moscow aims to develop multifaceted Russian-Indonesian relations and increase the effectiveness of joint coordination on various multilateral platforms, including BRICS. It was noted at the time that this year marks the 75th anniversary of diplomatic relations between Russia and Indonesia.

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