Southeast Asia Can Meet Paris Goal at Higher Cost
Prime Infrastructure Capital's Guillaume Lucci says the region can decarbonize, but energy costs must rise to get there.
Updated on Nov. 5, 2026 in Data Centers
Live Poll
Would you accept higher energy bills to meet climate targets?
Guillaume Lucci, president and CEO of Prime Infrastructure Capital, said Southeast Asia can meet the 1.5-degree Paris goal, though only at higher cost. The Philippines declared a nationwide energy emergency in March after fuel prices soared following the outbreak of the Iran war.
Why it matters
The Philippines imports 98% of its oil from the Middle East, leaving it exposed to disruptions in global energy supply. Lucci argues the region must accept higher energy costs to decarbonize, a trade-off that shapes energy investment decisions across Asia.
Global data centers consumed an estimated 415 terawatt hours of electricity in 2024, roughly 1.5% of global consumption. Prime Infrastructure Capital is building 2,000 megawatts of pumped hydro storage in the Philippines, though the timeline for completion was not provided.
The players
Guillaume Lucci
Guillaume Lucci is president and CEO of Prime Infrastructure Capital, an investment firm building energy infrastructure in the Philippines.
Prime Infrastructure Capital
Prime Infrastructure Capital is an infrastructure investment firm that is building 2,000 megawatts of pumped hydro capacity in the Philippines.
The details
Lucci said the region must accept higher energy costs to decarbonize, and Kim-See Lim identified a shortage of investor confidence as the main obstacle to energy investment. Lucci spoke at the Fortune Southeast Asia 500 Summit in Ho Chi Minh City, Vietnam.
Timeline
February 2026: Iran war broke out, sending oil and fuel prices sharply higher.
March 2026: The Philippines declared a nationwide energy emergency.
2025: About 25% of seaborne oil trade passed through the Strait of Hormuz.
2026-2030: The IEA projects Southeast Asia electricity demand will grow 5.4% annually.
Roadmap
The Paris Agreement's 1.5-degree goal sets the benchmark against which Southeast Asia's energy transition is measured. Lucci's argument that the goal is reachable only at higher cost puts the region's decarbonization path in direct tension with its current fuel import exposure.
Higher energy costs needed to decarbonize could raise electricity prices for households and businesses across Southeast Asia. Fuel price volatility tied to Middle East supply disruptions already affects daily costs in import-dependent countries like the Philippines.
The takeaway
Decarbonizing Southeast Asia's energy system will likely require accepting higher costs in the near term. Investor confidence, not just technology, is the main barrier to funding that transition.
Further reading
Explore more on Data Centers to see how energy demand from computing infrastructure is reshaping regional power planning.
Source note: This article includes information reported by Fortune.
Live Poll
Would you accept higher energy bills to meet climate targets?
