Opportunities for Europe–Southeast Asia–Australia collaboration in a sustainable economy, says Director-General, European Commission Directorate-General for Climate Action

Having successfully decoupled emissions from economic growth, the European Union aims to be the first climate-neutral continent by 2050, Director-General, European Commission Directorate-General for Climate Action, Kurt Vandenberghe, told a Melbourne panel. But we need to level the global playing field to address the existential threat of climate change.

Mr Vandenberghe and the European Commission are travelling the world, seeking like-minded partners as Europe makes strides towards carbon neutrality.

The EU saw emissions drop by 8.3 per cent in 2023, the largest reduction in decades (with the exception of 2020 when emissions dropped 9.8 per cent due to COVID-19).

A 2023 study by the Commission found that Europe is the fastest-warming continent, warming at roughly double the rate of the rest of the global average.

With this imperative for swift climate action, the EU is seeking win-win partnerships with the rest of the world. 

Mr Vandenberghe joined Climateworks Centre’s Southeast Asia Lead Trang Nguyen, Clean Energy Council’s Anna Freeman and Australian Industry Group’s (AiG) Tennant Reed for a panel hosted by Monash University on Friday, 21 February.

Climateworks and Monash Sustainable Development Institute chair Professor John Thwaites AM moderated the discussion.

Mr Vandenberghe noted all eyes were on Australia’s upcoming NDC, suggesting its level of ambition will send a global signal.

‘What Australia does is being watched by the rest of the world,’ he said.

He noted the complimentary competitive advantages of Australia and Europe, given Australia’s raw materials and potential for clean energy. At the same time, Europe’s revenue from emissions trading has enabled platforms for clean innovation to speed the transition.

One example is auctions where project developers bid for production support for renewables like green hydrogen. The fund is allocated to the lowest bids until the auction budget is exhausted. By supporting the most competitive bids, auctions help reduce production costs and lower renewable energy prices.

In September 2024, Australia and Germany committed EU€200 million each to a joint H2Global auction – the first H2Global agreement in the southern hemisphere – aimed at establishing renewable hydrogen shipping corridors between Australia and Europe.

Last year saw record global investment in clean energy – twice the investment that went into fossil fuels.

However, Climateworks’ Trang Nguyen noted that in Southeast Asia, that ratio is .8 investment in clean energy to 1 investment in fossil fuels.

According to the  IEA, the region attracts just 2 per cent of global clean energy investment despite making up 9 per cent of global population and 6 per cent of global GDP. She referenced the added cost of financing in times of policy uncertainty, marking a high-risk market for foreign investment.

Ms Nguyen also spoke about the opportunities in the region, with growing evidence that Southeast Asia can act as a green energy corridor. In the region, 85,000 green jobs have been created since 2019, with the prospect of 5.5 million jobs by 2050.

In his response, Mr Vandenberghe noted the importance of exchanging lessons on energy transitions between like-minded partners.

In Europe, he noted, the best transition enabler is the right policy mix. He said that tackling the challenges and exchanging best practices together will get us there faster.

‘We’re not doing this to save the planet’, he said.

‘We are doing this for the prosperity of all within planetary boundaries, to make sure there is a future for the next generation.’

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