ASEAN Summit Responds to Iran War Crisis with Collective Management Protocol

The ASEAN Summit in May 2023 was marked by a crisis protocol for collective management of shocks, following the Iran war. The summit delivered both a Chair's Statement and an unprecedented Leaders' Statement on the Middle East crisis, highlighting the need to preserve 'the unimpeded flow of energy and essential goods … to safeguard economic stability and strengthen resilience'. This shift towards collective crisis management was coupled with increased focus on energy cooperation.

The Philippines pushed for the fast-tracking of the ASEAN Petroleum Security Agreement and urged its 'earliest possible' ratification. ASEAN committed to strengthening regional energy security through strengthened cooperation, including supply diversification, biofuel blending, electric vehicle adoption, and renewable deployment. The summit re-committed to the 2026-2030 ASEAN Plan of Action for Energy Cooperation (APAEC) and endorsed aspirational 2030 goals, aiming to cut energy intensity by 40 per cent and have renewables constitute 30 per cent of total primary energy supply and 45 per cent of installed power capacity.

However, the summit also highlighted challenges in implementing these goals. Southeast Asia is exposed to oil shocks due to its dependence on Middle Eastern crude, with over 60 per cent of its imported crude coming from the region. The Philippines declared a national energy emergency and handed out fuel subsidies, while Malaysia still relies on the Middle East for 70 per cent of its crude oil supply.