The ASEAN Centre for Energy (ACE), through the Asia Low Carbon Buildings Transition (ALCBT) Project and the Programme for Energy Efficiency in Buildings in ASEAN (PEEB ASEAN), explored a coordinated approach for ASEAN to turn building energy efficiency opportunities into bankable projects and tangible results at the 26th ASEAN Energy Business Forum (AEBF-26). This event was held on 5-8 October 2026 at the Philippine International Convention Center (PICC), Manila.
Photo 1. Group Photo of the Event
A panellist session on “Unlocking Investment for Building Energy Efficiency in ASEAN” brought together representatives from governments, financial institutions, development partners, building owners, and service and technology providers to discuss challenges in mobilising investment and scaling up building energy efficiency projects.
Photo 2. Opening Remarks from Diana Kusumastuti, Vice Minister of Public Works, Republic of Indonesia.
Diana Kusumastuti, Vice Minister of Public Works, Republic of Indonesia, in her remarks, highlighted that green building has been an integral part of Indonesia’s Vision 2045, where decarbonising built environment seen as an economic opportunity. “Energy efficiency is not merely an environmental agenda. It is a powerful economic and investment opportunity”, she stated.
Reinforcing the importance of building energy efficiency, Dr Yan Vandeluxe, Deputy Director General of Construction at Cambodia's Ministry of Land Management, Urban Planning and Construction (MLMUPC), encouraged cooperation between government agencies and financing institutions that remains critical to mobilise investments for energy efficiency projects in the panel discussion. “We are now mobilising the financial sector, especially the banking sector of Cambodia, the private banks, so that they become aware of this and have the appetite to finance it,” he explained.
Despite growing interest in building energy efficiency, translating potential energy savings into bankable project pipelines remains challenging. Credible performance data, viable financial structures, and appropriate risk management are required to attract investment. Dr Mallé Fofana, Deputy Executive Director of the Global Green Growth Institute (GGGI), pointed out the fragmented nature of the building sector can be more challenging to standardise and structure for conventional financing compared with larger infrastructure investments.
Victoire Vandeville, Regional Director of Agence Française de Développement (AFD), further added that financing opportunities for sustainable infrastructure are expanding, individual building energy efficiency projects are often too small to justify the associated transaction costs. “When we [Financial Institutions] have a green building programme, it comes in small tickets, and it is very difficult for us to enter those transactions because the cost of implementation is too high. So it is important for us that governments have programmes that are scalable, for us to be in a position to finance them,” Victoire noted To address the challenges, Victoire emphasised that demonstrating project performance through initial pilots can strengthen confidence and create opportunities for subsequent financing.
Alexander Ablaza, Chief Executive Officer of Climargy Inc. and the Asia-Pacific ESCO Industry Alliance (APEIA), later explained the importance of aggregating smaller projects into investment portfolios and developing standardised contracts that are financially viable, investable, and insurable. “Majority of ESCOs across Asia, and across ASEAN, do not have suitable access to financing. But the good news is that infrastructure funds and equity providers are now flowing into aggregated or bundled ESCO projects. And that is also happening with energy as a service and cooling as a service,” said Alexander.
Beside project scale and financing structures, reliable energy performance data is essential to building investor confidence. Michael F. Magpusao, Chief of Operations of APMC, shared Ayala Property Management Corporation (APMC)'s perspective on the importance of data-driven decision making and the integration of sustainability considerations in the long-term corporate strategies. Furthermore, Paula Dela Llana-Nunag, Director of Digital Energy & Commercial Enterprise at Schneider Electric highlighted the role energy monitoring and digital management systems to increase the confidence of investor by establishing consumption baselines, estimating savings, and verify actual performance.
Photo 3. Panel Session featuring (from left to right) Naing Naing Linn from the ASEAN Centre for Energy (ACE); Paula Dela Llana-Nunag from Schneider Electric; Alexander Ablaza from Climargy Inc. and the Asia-Pacific ESCO Industry Alliance (APEIA); Mallé Fofana from the Global Green Growth Institute (GGGI); Michael F. Magpusao from Ayala Property Management Corporation (APMC); Victoire Vandevillefrom Agence Française de Développement (AFD); and Dr. Yan Vandeluxe from Cambodia’s Ministry of Land Management, Urban Planning and Construction (MLMUPC).
Building on the investment discussions and practical examples, accelerating building energy efficiency across ASEAN requires coordinated efforts to address financing and implementation barriers. Aggregating smaller projects into larger portfolios can help reduce transaction costs and attract investment, while pilot projects can demonstrate technical assistance and financing mechanisms that build investor confidence and encourage wider replication. At the same time, strengthening mandatory energy efficiency requirements and building performance standards can create more consistent market demand and encourage building owners to invest in energy efficiency improvements.
By translating lessons from project implementation and technical demonstrations into scalable investment models and stronger enabling frameworks, ASEAN can accelerate the transition from energy efficiency potential to tangible, long-term investments across its building sector. Through ALCBT Project and PEEB ASEAN, ACE and its partners continue to support ASEAN Member States in strengthening technical capacity, developing investment-ready projects, facilitating financing, and demonstrating practical solutions for low-carbon buildings.
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About the ALCBT Project The Asia Low Carbon Buildings Transition (ALCBT) Project is a five-year multi-stakeholder project that seeks to reduce GHG emissions by catalysing nationwide transition towards Low Carbon Buildings in five Asian countries, namely Cambodia, India, Indonesia, Thailand, and Viet Nam.
The ALCBT project is being implemented by the Global Green Growth Institute (GGGI) in partnership with the ASEAN Centre for Energy (ACE), Energy Efficiency Services Limited (EESL), and HEAT International. This project is supported by the International Climate Initiative (IKI) of the Federal Government of Germany. Within the Federal Government, the IKI is anchored in the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN).
About the PEEB Project The Programme for Energy Efficiency in Buildings in ASEAN (PEEB ASEAN) is a four-year programme (2024-2028) implemented by the ASEAN Centre for Energy (ACE) and Agence Française de Développement (AFD), with funding from AFD. It supports ASEAN Member States in accelerating energy efficiency and low-carbon development in the buildings sector through two complementary components:
- Component 1 focuses on regional policy analysis, a digital knowledge hub, capacity building, and demand-driven national enabling activities across all 11 ASEAN Member States.
- Component 2 delivers direct technical and financial support for pilot building energy efficiency and passive-cooling projects.
