The Energy Transition in Myanmar

Myanmar is at a critical juncture in its energy transition, positioned strategically within Southeast Asia with its abundant natural resources and critical mineral reserves. Historically reliant on natural gas and coal, Myanmar is now focusing on diversifying its energy mix, investing heavily in renewable sources such as solar and hydropower. The country is rich in critical minerals, including rare earth elements, tin, copper, and nickel, which are integral to the global clean energy transition. Myanmar’s rare earth resources, in particular, are becoming increasingly significant as global demand for these minerals soars due to their use in electric vehicles, renewable energy technologies, and electronics. Geopolitically, Myanmar's energy and mineral development is heavily influenced by its relationships with key allies, particularly China and India. China, as Myanmar's largest trading partner, is involved in infrastructure development projects and is a significant player in Myanmar’s mining sector. India also plays a role in regional cooperation, particularly in energy and critical minerals, with shared interests in security and regional connectivity. However, Myanmar’s energy and mineral potential face considerable risks from political instability, human rights concerns, and the need for stronger ESG frameworks to ensure sustainable and responsible development.