The Energy Reckoning: Oil Shocks, Climate Risk, and the Renewable Imperative in South and Southeast Asia

Executive Summary

Emerging economies across South and Southeast Asia — India, Pakistan, Bangladesh, Sri Lanka, and the Philippines — are living through their sharpest energy shock since 2022. Renewed conflict in the Middle East has closed off the world’s most important oil chokepoint, driving crude prices to multi-year highs and exposing just how import-dependent these economies remain. At the same time, climate change is quietly degrading the reliability of the very renewable systems these countries are racing to build. The result is a two-front crisis: an acute oil shock layered on top of a slower-moving climate emergency. 2026 is proving to be the year this dependency finally forces structural change. Our latest report discusses the current energy scenario.

Whitepaper_South-Asia-Energy-Crisis_11 August 206 copy.pdf

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