AZEC Plus and India: Steering Asia’s Energy Future Through Crisis and Climate Urgency

If the question is what happens when the urgency of climate action collides with the fragility of global supply chains, AZEC Plus offers an answer. It is here that contradictions are actively negotiated. It reflects a broader transformation in global governance, where flexible coalitions complement traditional institutions.

Somewhere between the oil tankers crossing the Strait of Hormuz and the boardrooms of Tokyo, the future of Asia’s energy security is being negotiated in real time. The journey to net zero is no longer a straight road. It is like a mined ocean, where unseen risks drift beneath the surface, and a single disruption can ripple across continents.

Within this fragile and uncertain landscape, the Asia Zero Emission Community Plus, or AZEC Plus, has emerged as a crucial diplomatic platform. The recent virtual participation of India’s External Affairs Minister, S. Jaishankar, signals a deeper strategic alignment between India’s national priorities and Asia’s evolving energy future.

A Framework Born in Transition

The origins of AZEC stem from a Japanese initiative aimed at aligning Asia’s development trajectory with the global push for carbon neutrality. Launched formally in 2023, the Asia Zero Emission Community brought together key economies including Japan, Indonesia, Malaysia, and Vietnam. Its central idea was fairly ambitious. It aimed to balance economic growth with decarbonisation and energy security.

However, global realities shifted faster than institutional frameworks could adapt. The aftershocks of geopolitical conflicts, disruptions in shipping lanes, and volatility in fossil fuel markets exposed deep vulnerabilities. Experts convened, and AZEC Plus emerged as a response to this urgency. It expanded participation and shifted focus from long-term planning to immediate coordination.

If the question is what happens when the urgency of climate action collides with the fragility of global supply chains, AZEC Plus offers an answer. It is here that this contradiction is actively negotiated. It reflects a broader transformation in global governance, where flexible coalitions increasingly complement traditional institutions.

Energy Flows Under Stress

To understand the urgency behind AZEC Plus, one must look at the fault lines of global energy systems. Nearly 20 percent of the world’s oil supply passes through the Strait of Hormuz. This narrow waterway has become one of the most strategic chokepoints in global trade, and even the slightest disruption here has immediate and far-reaching consequences.

Recent crises have shown how fragile these systems truly are. During the Red Sea tensions of 2023 and 2024, attacks on commercial vessels forced major shipping companies to suspend routes through the Suez Canal. Ships were rerouted around the Cape of Good Hope, adding nearly two weeks to delivery timelines and sharply increasing fuel costs.

Delays were only part of the problem. As marine war-risk insurance premiums surged sharply, in some cases rising by over 300 percent, smaller shipping operators were pushed out of critical routes, tightening supply chains further. These disruptions quickly translated into higher energy prices and added economic strain for importing countries.

The World Bank estimates that such energy shocks can reduce GDP growth in energy-importing nations by up to 1 to 2 percent. For a region like Asia, which accounts for over half of global energy demand growth according to the International Energy Agency, the stakes could not be higher.

Security, Sustainability, Resilience

AZEC Plus Meeting

AZEC Plus operates at the intersection of three urgent priorities. Energy security, decarbonisation, and supply chain resilience form the very foundation of its agenda. These deeply intertwined concerns are shaping how countries plan their economic futures.

Energy security is the cynosure of concern. Countries are increasingly aware that access to stable and affordable energy can no longer be taken for granted. Disruptions in maritime routes, especially in conflict-prone regions, have heightened this anxiety and reinforced the need for collective vigilance.

At the same time, the long-term goal of decarbonisation continues to guide policy direction. AZEC discussions have given the nod to the idea of "multiple pathways to net zero". This approach aligns closely with the essence of "Common But Differentiated Responsibilities" under the global climate framework, recognising that countries have different capacities and developmental needs.

Supply chain resilience has emerged as the defining theme of AZEC Plus. The focus is shifting toward diversification of energy sources, protection of critical trade routes, and building systems that can withstand external shocks. This forms a triad that upholds a more nuanced understanding of energy governance in an unpredictable world.

India at the Crossroads

As the world’s third-largest energy consumer, India stands at a unique crossroads. Its developmental ambitions require sustained energy access, while its climate commitments demand a transition toward cleaner sources. This dual challenge is what distinguishes India’s engagement with AZEC Plus.

During the recent meeting convened by Japan, S. Jaishankar emphasised the importance of secure and reliable energy flows. He underscored India’s commitment to ensuring safe maritime transit and condemned attacks on merchant vessels. His remarks reflected both immediate concerns and long-term strategic thinking.

Policymakers in New Delhi recognise that India’s position is shaped by its own vulnerabilities. A significant share of its energy needs is met through imports, making it highly sensitive to disruptions in global supply chains. Ensuring the security of sea lanes is therefore not merely a diplomatic stance but a national necessity.

Simultaneously, India voices strongly in favour of energy diversification, with its investments in renewable energy, green hydrogen, and biofuels aligning closely with AZEC’s broader objectives. The global hydrogen market alone is projected to reach USD 410 billion by 2030, presenting significant opportunities for collaboration.

India’s emphasis on flexible transition pathways resonates with many developing countries. By advocating equity in climate action, it positions itself as a bridge between developed and developing economies within the AZEC framework.

Regional Cooperation and Shared Stakes

The AZEC Plus meeting underscored that energy challenges cannot be addressed in isolation. Countries across Asia are increasingly aware of their interdependence. Leaders from participating nations, including Malaysia, reiterated the importance of stable and resilient energy systems.

Malaysia’s role is particularly significant as a major supplier of liquefied natural gas. Global LNG demand is expected to grow by over 25 percent by 2030, increasing the importance of reliable suppliers within regional frameworks. Discussions around diversification and alternative energy sources are therefore gaining momentum.

The concept of integrated energy systems also featured prominently during the discussions. Initiatives such as the ASEAN Power Grid aim to create a regionally connected electricity network, enabling cross-border energy trade and improving resilience. They also signal a shift toward collective solutions rather than isolated strategies.

When supply routes become fragile and economic flow becomes uncertain, cooperation emerges as the only viable pathway forward. AZEC Plus provides a platform where these conversations can take place with urgency and purpose.

Achievements and the Road Ahead

The broader AZEC framework has already demonstrated significant progress. By 2025, over 500 Memoranda of Understanding and collaborative projects had been initiated across sectors ranging from renewable energy to carbon capture. Initiatives like these highlight the growing momentum behind regional energy cooperation.

AZEC Plus builds on this foundation by enabling rapid policy coordination during crises. Its flexible structure allows for timely discussions and alignment of strategies among diverse stakeholders. While it does not produce binding agreements, its value lies in shaping consensus and guiding collective action.

However, the true test lies ahead. Translating dialogue into tangible outcomes will require sustained political will and substantial financial investment. The Asian Development Bank estimates that developing Asia will need over USD 1.7 trillion annually in energy investments until 2030. Bridging this gap will be critical to achieving both climate and development goals.

The challenge today is not just financial. It also involves technological collaboration, capacity building, and the creation of supportive policy frameworks. AZEC Plus can play a pivotal role in facilitating these processes, provided its participants remain committed to shared objectives.

A Strategic Compass for a Turbulent Era

AZEC Meeting Being Virtually Attended

Trapped between the tides of geopolitics, Asia continues to search for a reliable compass. AZEC Plus aims to serve that purpose. It brings together diverse nations under a shared vision, even as their individual priorities differ.

For a country like India, participation in AZEC Plus represents a blend of interests. It allows the country to safeguard its energy security while not shying away from its climate commitments. It also provides a platform to shape regional discourse and promote inclusive approaches to global challenges.

S. Jaishankar's latest interaction with counterparts across Asia reveals that energy diplomacy is no longer confined to bilateral agreements or long-term targets. India aims to navigate the immediate risks while building a sustainable future.

The margin for error in global energy systems is rapidly shrinking, with every decision carrying weight and every disruption having consequences. In this environment, platforms like AZEC Plus offer a rare space for dialogue and genuine collaboration.

At a time when every moment in contemporary geopolitics is shaped by cooperation, the AZEC Plus platform enables responsible economies like India to keep pace with a rapidly transforming global order.