SINGAPORE - While energy demand across Asia continues to grow, renewable energy already accounts for a significant share of the energy mix in some parts of the region, supported by falling costs, said Chia Der Jiun, managing director of the Monetary Authority of Singapore, the country's central bank.

Speaking at the Financing Asia's Transition Conference 2025 on Wednesday, Chia pointed to recent progress in China, where the installed capacity of wind and solar power surpassed fossil fuel-based thermal power for the first time in March this year.

He added that countries such as the Philippines, Thailand, and Cambodia are also seeing renewable energy costs fall below those of coal-generated electricity.

"In Asia, enabling energy transition will be key to transitioning our economies," Chia said, noting that electricity demand in the region is projected to rise by 4 percent annually until 2035, driven by end-use sectors such as transport, industry and buildings.

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However, he warned that the global outlook for climate action is becoming increasingly uncertain. "A more uncertain path" lies ahead for climate action than at any time in the last five years, he said, citing waning commitments to a timely transition.

Chia also observed that global private-sector coalitions are pulling back. Many financial institutions have exited net-zero alliances, and some of these coalitions have revised their objectives.

More broadly, he noted, corporate investment may become more cautious amid heightened trade tensions and economic uncertainty.