This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility: Countries in the Asia-Pacific can accelerate the shift to clean energy while building competitive local industries as long as policies don't slow access to affordable technologies, a new report has found. Researchers from The University of Queensland and the University of California (UC) San Diego have examined clean technology deployment, trade and manufacturing investment across nine Asia-Pacific economies, including Australia.
UQ's Christoph Nedopil, a professor, said clean technology manufacturing investment announcements across the nine countries reached more than $15.5 billion ($11 billion USD) in the first half of 2026, led by Indonesia and India. "Across the Asia-Pacific, countries are not following a single roadmap," Nedopil said. "We found there are distinct transition pathways, depending on the country's domestic industry, trade and energy priorities.
"For example, Australia's renewable energy expansion relies heavily on imported technologies, as do those of Pakistan and the Philippines, while Malaysia and Thailand are export-oriented. Meanwhile, India is building manufacturing capacity, primarily for domestic use. "The risk for import-dependent countries like Australia is an overreliance on external suppliers, but the opportunity lies in developing positions in supply chains and value-added activities." Nedopil said India, Australia and Vietnam lead the region in adopting renewable energy generation.
"India added 172 gigawatts (GW) of renewable capacity between 2015 and 2025, and Australia managed to add 48 GW of capacity, despite limited domestic clean technology manufacturing," he said. Michael Davidson, an associate professor at UC San Diego, said China remained the dominant supplier of imported clean technologies for most economies. "Ninety-nine percent of Pakistan's solar equipment imports came from China in 2025," Davidson said.
"China also supplied the remaining Asia-Pacific economies in the study with more than 60% of their battery imports and new energy vehicles, except for batteries to Malaysia. "Conversely, the United States is a dominant buyer of clean technology from the Asia-Pacific, with Indonesia, Malaysia and Thailand sending more than half of their solar exports to the U.S. Changing U.S. trade policies also create uncertainty for export-oriented manufacturers." Nedopil said investment announcements and trade surpluses did not necessarily translate into operating factories, local jobs or technological capability.
"Access to affordable imports can speed up the energy transition, but building competitive local manufacturing requires sustained demand, strong supply chains and ongoing innovation," he said. "The challenge is creating lasting economic value without slowing the shift to clean energy." C. Nedopil et al., Asia-Pacific's green economic transitions at the intersection of cleantech trade, investment and utilization 2015-2026, (2026).
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