Australia-ASEAN Partnership: Forging a Resilient Future Through Digital and Green Economies

The partnership between Australia and ASEAN is rapidly evolving, driving progress in an era defined by digital transformation and urgent energy needs. Beyond traditional commerce, this collaboration is building a resilient future, anchored by robust digital economies and cleaner, more sustainable energy landscapes.

Australia’s commitment to this shared vision is clear and actionable. Recognising ASEAN’s ambitious energy goals, Canberra has significantly stepped up its support for a greener tomorrow.

Energising Green Transition: A Strategic AUD 6.9 Million Boost

A cornerstone of Australia’s support is the AUD 6.9 million ASEAN-Australia Energy Cooperation Package. This vital investment directly empowers ASEAN’s transition to renewable energy and helps shape crucial regional energy policy. The package directly fuels ASEAN’s long-term ambition for the ASEAN Power Grid (APG) by 2045 (Argus Media, 2025; ADB, n.d.). The APG is a landmark initiative to create a highly interconnected power system across Southeast Asia, dramatically enhancing regional energy security, reliability, and sustainability. The Asian Development Bank (ADB) projects the APG to have an interconnection capacity of 17.6 gigawatts by 2040, requiring over $100 billion in transmission infrastructure investments (ADB, n.d.). Australia’s support provides the expertise and resources needed to navigate this monumental undertaking, further bolstered by initiatives like the ASEAN Power Grid Financing Facility (APGF) launched in 2025 (ASEAN-BAC, n.d.).

Accelerating a Dynamic Digital Economy

Beyond energy, Australia and ASEAN are equally committed to harnessing the full potential of the digital economy. This shared drive is essential for fostering innovation, boosting connectivity, and ensuring inclusive economic growth across Southeast Asia. ASEAN’s digital economy is projected to reach $263 billion in 2024 and could grow to nearly $1 trillion by 2030 (World Economic Forum, 2024; VNTR, 2024).

Australia actively champions deeper digital cooperation, including vital support for the ASEAN Digital Economy Framework Agreement (DEFA). DEFA is recognised as the world’s first region-wide digital economy agreement, aiming to facilitate seamless digital trade, nurture innovation, and build a secure, resilient digital ecosystem throughout ASEAN (World Economic Forum, 2024). Australia’s engagement provides valuable insights, technical assistance, and capacity-building through initiatives like the “Aus4ASEAN Digital Transformation and Future Skills initiative,” which supports vocational scholars and technical assistance partnerships (ASEAN-Australia CSP, n.d.).

A Partnership for Prosperity and Resilience

This collaborative push for digital and green economies highlights the dynamic nature of the Australia-ASEAN relationship. It’s a partnership poised to tackle the 21st century’s most pressing challenges and seize its most promising opportunities. In FY2023-24, Australia’s two-way trade with ASEAN nations amounted to $192.9 billion, surpassing its trade with Japan, the United States, or the EU, and two-way investment reached $282 billion in 2023 (DFAT, 2025; ASEAN Exchanges, 2024). This strong economic foundation is further solidified by the historic Australia-ASEAN Comprehensive Strategic Partnership (CSP) established in 2021 (ASEAN Exchanges, 2024).

Australia’s investment in renewable energy and active support for digital transformation not only reinforces strong ties with ASEAN but also directly contributes to the region’s long-term economic resilience, environmental sustainability, and overall prosperity. This deepening cooperation paves the way for a more connected, sustainable, and thriving Indo-Pacific.

APG proudly advocates for digital transformation, consults clients to apply high-tech in business, and actively encourages green business practices.

References

ADB. (n.d.). ADB and the ASEAN Power Grid. Asian Development Bank. Retrieved from https://www.adb.org/where-we-work/southeast-asia/asean-power-grid

Argus Media. (2025, July 14). Southeast Asia targets regional power grid by 2045. Retrieved from https://www.argusmedia.com/en/news-and-insights/latest-market-news/2709728-southeast-asia-targets-regional-power-grid-by-2045

ASEAN-Australia Comprehensive Strategic Partnership (CSP). (n.d.). ASEAN-Australia CSP. Retrieved from https://asean.mission.gov.au/aesn/CSP_02.html

ASEAN-BAC. (n.d.). Unlocking Regional Power Trade: Policy Pathways for the ASEAN Power Grid. Retrieved from https://asean-bac.org/news-and-press-releases/unlocking-regional-power-trade-policy-pathways-for-the-asean-power-grid

ASEAN Exchanges. (2024, December 26). Australia-ASEAN Summit: Prospering In Partnership. Retrieved from https://www.aseanexchanges.org/content/australia-asean-summit-prospering-in-partnership/

Department of Foreign Affairs and Trade (DFAT). (2025, March 5). ASEAN and Australia. Australian Government Department of Foreign Affairs and Trade. Retrieved from https://www.dfat.gov.au/geo/southeast-asia/asean-and-australia

VNTR. (2024, November 20). Southeast Asia’s Digital Economy Expected to Reach $263 Billion in 2024: Vietnam as a Bright Spot. Ministry of Industry and Trade of Vietnam. Retrieved from https://vntr.moit.gov.vn/news/southeast-asias-digital-economy-expected-to-reach-263-billion-in-2024-vietnam-as-a-bright-spot

World Economic Forum. (2024, January 12). How ASEAN is building trust in its digital economy. Retrieved from https://www.weforum.org/stories/2024/01/asean-building-trust-digital-economy/