Asia, home to over half the world’s population and some of its most dynamic economies, is rapidly embracing a circular energy paradigm—one that minimises waste, maximises reuse and designs systems for longevity. Beyond simply expanding renewables, this model reimagines resource flows across the full lifecycle of energy assets—from R&D and manufacturing to consumption, recovery and reintegration.
Realising this vision demands more than technological breakthroughs. It requires aligned policies, innovative business models and culturally sensitive strategies that together, can unlock circularity at scale.
Policy and Regulatory Frameworks: Creating Conditions for Circularity
Governments are shifting away from linear ‘take-make-dispose’ approaches. By embedding circular economy principles into national development plans, regulators are creating the market signals and incentives necessary for industry transformation.
China, for example, has demonstrated a strong commitment to this transition by embedding circular economy principles into its national development strategy through policies like the 14th Five-Year Plan (2021-2025). This plan sets ambitious targets for improving resource utilisation, building a robust recycling system and advancing technological innovation, with a focus on battery recycling. Recent policy initiatives in 2024 further emphasise improving waste recycling systems, promoting the recycling of key products like vehicles and power batteries and encouraging equipment upgrades and consumer goods replacement programmes where older, less efficient appliances or electronics are exchanged for newer, energy-efficient models.
Japan also has a long history of circular economy policies, starting with the Sound Material-Cycle Society initiative in 2000. This initiative combines regulatory enforcement with market-based incentives, obligating businesses to reduce waste, improve resource cycling and enhance product durability. Japan’s Circular Economy Vision 2020 provides a roadmap for the country’s ongoing transition towards a fully circular economy, integrating energy transition goals with material efficiency, life-cycle thinking in energy infrastructure and the advancement of hydrogen technologies for reusing carbon-intensive fuels.
Within ASEAN, policy efforts are also gaining momentum. In 2021, ASEAN adopted the Framework for Circular Economy for the ASEAN Economic Community to guide the region towards sustainable and inclusive growth through resource efficiency and waste minimisation. Priority areas include harmonising standards and facilitating trade in circular goods and services, harnessing innovation, technology, sustainable finance and investments, and promoting resource efficiency. Several ASEAN member states are already developing national circular economy strategies and action plans, with Cambodia, Indonesia, Thailand and Vietnam focusing on sectors such as agriculture, food production, forestry, mining and energy.
Innovation at the Core: Disruptive Business Models and Technologies
With supportive policies in place, both startups and established players across Asia are driving innovation in circular energy through technology and new business models. By integrating recycling, reuse and resource management into their core operations, these organisations are not only optimising efficiency but also unlocking new market opportunities.
In South Korea, battery second-life solutions are gaining traction through initiatives like the Circular Economy 9 project. This project focuses on advancing battery recycling technologies to recover high value materials namely lithium and nickel from used electric vehicle batteries. Companies like LG Energy Solution are investing heavily in these technologies, exploring how used electric vehicle batteries can be repurposed for stationary storage, reducing raw material demand and extending product lifecycles.
Innovation in South Korea is also being fuelled by startups and tech giants that are combining Internet of Things (IoT), data analytics and renewable energy solutions. Startups like Ineeji are using artificial intelligence and real-time data monitoring to optimise industrial energy consumption, while companies like Poen are advancing circularity by refurbishing damaged electric vehicle batteries for resale.
The ASEAN region is actively exploring the potential of waste-to-energy (WtE) technologies to address both waste management challenges and the increasing demand for energy, particularly in rapidly urbanising countries with limited landfill space. Bangkok’s first WtE incinerator in Nong Khaem, which began operations in 2016, can convert up to 500 metric tonnes of solid waste into electricity daily using technology from Japan’s Hitachi Zosen. An expansion of the Nong Khaem facility, set to commence in 2026, will add two 700‑tonne incinerators and a 35 MW turbine, further alleviating landfill pressures while supplying clean power.
Challenges and Opportunities in Scaling Circularity: The Asian Context
Asia’s diversity presents both strengths and complexities in scaling a circular energy economy. Factors such as urbanisation, economic disparity and varying levels of infrastructure create different entry points for circular practices. In high-density economies like Japan and Singapore, space constraints incentivise compact and integrated systems for waste management and energy recovery. Conversely, in emerging economies such as Laos and Myanmar, the lack of centralised infrastructure presents opportunities for modular and decentralised circular energy solutions.
Cultural values play a crucial role as well. In many Asian cultures, frugality and resourcefulness are deeply ingrained, providing a cultural foundation for reuse and repair. However, the rise of a consumer-driven middle class has led to increased waste generation, making it crucial to balance traditional values with modern consumption patterns.
Moreover, as Asia remains a global manufacturing powerhouse, complex supply chains demand innovative reverse logistics and traceability solutions, with digital technologies such as blockchain and IoT providing the needed transparency and accountability — necessary for credible recycling and reuse systems.
Looking Ahead: A Circular Economy Worth Building
Asia stands at the cusp of a circular energy revolution that is powered by smart policies, breakthrough technologies and inclusive partnerships. Embracing a full-lifecycle approach to resource use will not only reduce environmental impact but also create resilient industries and new value streams.
Energy Asia aspires to be a platform for exploring these critical discussions and the latest advancements in circular energy solutions, where policymakers, industry leaders, innovators and stakeholders from across the region collaborate on shaping an inclusive and equitable energy future for Asia.
Be in Kuala Lumpur for Energy Asia 2025, and take part in the energy transition journey.
Register now at officialenergyasia.com.
