Examining The Social and Economic Dimensions of Just Transition Processes in Southeast Asia: Case Studies of Indonesia, the Philippines, and Viet Nam

Abstract

Southeast Asia is home to a variety of rapidly growing economies and energy systems. Much of this growth has been driven using fossil fuels to fulfil energy demands. Despite having substantial renewable energy potential, three of the region’s eleven countries — Indonesia, the Philippines, and Viet Nam — primarily rely on fossil fuels for electricity generation. However, the urgent need for climate change mitigation efforts means these countries must undergo an energy transition, as well as social and economic transitions linked to changes in their energy systems. This study therefore examines the current distribution of social and economic impacts in the energy sector through the lens of the Just Transition. The research will focus on important social aspects (i.e., green job transitions and equitable benefit sharing), as well as economic aspects (i.e., regressivity, conflicting fiscal and economic policies, and economic diversification). The results show that, from a macro perspective, the three countries still face challenges in terms of the social and economic distribution of transition impacts. Therefore, improvements in these areas are needed to ensure a fairer transition to a cleaner energy sector. This could involve integrating social and economic considerations into energy transition planning and implementation, for example.