International Actors and Energy Transition in South Asia: Balancing Development and Diplomacy

This chapter explores how South Asia is navigating the complex journey towards a sustainable energy future amidst its regional ambitions and international influence. Sustaining nearly a quarter of the world’s population, South Asia faces the dual challenge of expanding energy access while ensuring energy security. This occurs against the backdrop of climate imperatives, constrained development pathways, and increasing geopolitical pressures. This analysis focuses on the role of major external players, China, the United States, and the European Union in the sustainable energy transition of South Asia. We analyse their role through a three-pronged framework—finance, technology, and a policy approach. The chapter does this by taking the case study of energy transition pathways of two South Asian countries—India and Bangladesh. It further examines how countries in the region exercise agency through initiatives like the International Solar Alliance and national capacity-building programs. However there are some critical challenges. The investment shortfalls, a reliance on imported technologies and supply chain vulnerabilities. This chapter examines the importance of equitable international support to enable a just and inclusive transition. Highlighting key opportunities and risks in the globalized energy landscape we discover how South Asian countries attempt a balance of development goals with strategic autonomy in a competitive world.