Paths for Decarbonising the Transport Sector in ASEAN

Economic Research Institute for ASEAN and East Asia (ERIA) and Economic Research Institute for ASEAN and East Asia (ERIA)

No 2026-RPR-08 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This ERIA research report examines the strategic frameworks and practical challenges associated with decarbonising the transport sector in selected ASEAN countries. The study compiles and analyses relevant transport sector policies and assesses the progress of electric vehicle (EV) adoption and biofuel integration in Indonesia, Malaysia, Singapore, Thailand, and Viet Nam. Using well-to-wheel greenhouse gas emission assessments, the report compares the carbon emissions of different vehicle powertrains while taking into account each country’s power generation mix. The study highlights the important roles of government incentives, infrastructure development, and consumer preferences in shaping the transition away from fossil fuel dependence. The findings suggest that while battery electric vehicles (BEVs) offer the greatest long-term potential for emission reductions, hybrid technologies and biofuels remain important transitional solutions for achieving regional carbon neutrality. Carbon-neutral fuels, particularly biofuels, will play a critical role during the transition towards the decarbonisation of the power sector. These fuels may also provide cost-effective and realistic pathways for reducing emissions in the transport sector. However, realising the full supply potential of biofuels will require the development of adequate supply infrastructure, the availability of sufficient labour, and continuous improvements in production technologies. Sustained and coordinated efforts will therefore be essential to ensure progress in these areas.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:era:eriabk:2026-rpr-08

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