US to boost ASEAN energy transition spending
US president Joe Biden will announce $150mn in new US spending in southeast Asia to promote development of renewable energy and infrastructure, as well as maritime security, when he hosts leaders of ten ASEAN nations on Friday.
The spending package includes $40mn in development finance that could unlock up to $2bn in private investment in southeast Asian power systems, increasing regional energy trade, and accelerating the deployment of clean energy technologies, a senior US official said. The Biden administration will also launch a "climate solutions hub" to provide technical assistance to ASEAN members — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — in implementing their emissions goals set under the Paris climate accord.
The White House is hosting ASEAN leaders for the first time as part of an overall strategy to meet what US officials describe as China's growing assertiveness in the region. But publicly at least, the White House is steering clear of positioning its cooperation with ASEAN as a counterweight to China. "Obviously, China is an important player in the region," the official said. "We have said bilaterally and in our engagements that we are not asking countries to make a choice between the US and China."
Biden is also announcing $60mn in spending on maritime initiatives, including on US Coast Guard personnel to be stationed in the region to provide training to ASEAN members.
The spending is separate from the yet-to-be formalized Build Back Better World proposal for infrastructure spending in emerging economies that the US is positioning as an alternative to China's Belt and Road Initiative. US officials have been visiting countries in the southeast Asia and elsewhere to gauge interest in the Build Back Better World initiatives, and "there are continued efforts on that front."
The Biden administration has signaled that it has no plans to rejoin the Trans-Pacific Partnership trade agreement negotiated by former president Barack Obama's administration, or the China-focused "Regional Comprehensive Economic Partnership" trade agreement. Many of the ASEAN members are parties to both trade agreements.
The US instead is working on an "Indo-Pacific Economic Framework" to address some of the trade and investment issues, but the proposal is not expected to be presented during the ASEAN summit.
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