Energy-intensive industries in the Asia-Pacific region are reinforcing their commitment to sustainability and decarbonization, with nearly all businesses increasing their investment in energy transition efforts, according to new research from ABB’s energy industries division.

The Asia Pacific Energy Transition Readiness Index 2025, which surveyed over 4,000 executives across 12 markets, reveals that 65% of business leaders believe the transition is progressing at a sufficient pace, but also highlights untapped opportunities and persistent roadblocks. While momentum is building, 92% of respondents believe the industry can do more.

The survey, targeting key sectors such as chemicals, power generation, oil and gas, transport, and manufacturing, finds that 99% of organizations increased their energy transition investments over the past year.

A further 73% expect to allocate at least 10% of their capital expenditure to these efforts over the next five years, signalling a strong upward trend in green capital flows.

Digitalization and automation have emerged as the primary drivers of this shift. Of the respondents, 71% identify AI and automation as enablers, while digitalization ( 38% ) and automation ( 35% ) top the list of investment priorities, surpassing electrification ( 27% ).

Solar energy leads the renewables charge, with 73% of companies already deploying it and 45% planning major expansions. Hydropower ( 55% ) and wind ( 51% ) also feature prominently, alongside a growing interest in emerging sources like green hydrogen ( 37% ), geothermal ( 31% ), and biomass ( 31% ).

Challenges remain

“It is encouraging to see that Asia-Pacific leaders remain committed to sustainability and energy transition goals,” says Anders Maltesen, president of ABB’s energy industries division, Asia. “Accelerating readiness will take a combination of policy certainty, technology innovation, financial investment, and focused collaboration.”

Despite progress, several challenges remain. Technological limitations ( 23% ), financial constraints ( 21% ), and regulatory barriers ( 20% ) were cited as major hurdles.

Moreover, 46% of businesses report being under-resourced, and 59% struggle to recruit skilled green talent. Fragmented leadership, inconsistent sustainability planning, and limited public disclosures also hamper progress.

The report calls for stronger government incentives ( 62% ), cross-regional grid cooperation ( 60% ), and increased private sector investment ( 56% ) to drive further progress.

While ABB’s data reveals that Asia-Pacific businesses are mobilizing at scale, to fully realize the region’s decarbonization potential, sharper strategic alignment and cross-sector coordination will be essential.