Development of the Bioenergy Supply Chain in AZEC Partner Countries Phase II

This Phase II report by ERIA, Development of the Bioenergy Supply Chain in AZEC Partner Countries, builds on the findings of the Phase I study by examining the development of non-power bioenergy sectors in Indonesia and the broader bioenergy landscapes of Malaysia and the Philippines. Drawing on literature reviews, site visits, stakeholder interviews, and surveys, the report assesses the current status, constraints, and prospects of bioenergy supply chains in each country. The analysis identifies several common challenges across the three countries, including the limited economic competitiveness of bioenergy without policy support, low technological readiness for advanced biofuels, underdeveloped feedstock and logistics supply chains, and environmental concerns – particularly those associated with palm oil cultivation and land-use impacts. The report concludes that unlocking the potential of bioenergy will require a coordinated policy approach that combines regulatory reform, targeted financial incentives – including carbon pricing mechanisms – and strategic public and private investment in research and development and enabling infrastructure. Strengthened regional co-operation under the Asia Zero Emission Community (AZEC) framework will also be critical to accelerating technology diffusion and market development. With appropriate policy and investment support, bioenergy can play a meaningful role in decarbonising national energy systems while contributing to the growing demand for low-carbon energy from international manufacturers operating across Southeast Asia.