With the US retreating from climate finance and fossil fuels getting cheaper, Asia faces a choice: chase short-term gains or find new partners to keep its clean-energy future on track.

Washington’s withdrawal last week from the Just Energy Transition Partnership (JETP), a global initiative to help developing nations shift from coal to renewables, has cast a long shadow over energy-hungry Asia, which faces intensifying climate threats and a fast-evolving geopolitical landscape.

The price of Brent crude oil recently plunged to a five-month low before inching up as the world’s most influential oil cartel, Opec, increased output from April in response to pressure from US President Donald Trump to bring down prices.

A possible early resolution to the Ukraine-Russia war could open the tap to cheap oil from Russia that had been hit by Western sanctions. Punters are also projecting higher US output of shale oil and gas and uncertain demand amid concerns about the impact of American tariffs on global trade.

While shortages in global natural gas supplies may persist this year according to Ask ICIS, a generative AI commodities assistant, supply and demand are expected to even out by next year and tip into oversupply by 2027.

This bearish outlook could lure Asian nations to import more carbon-emitting fuels rather than step up their clean-energy programmes.