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Asia's Fossil Fuel Dependence Poses Long-Term Geopolitical Risk, Says Vanda Insights

GateNews
Commodities
According to Vanda Insights on July 22, Asia's dependence on fossil fuel imports will expose the region to prolonged geopolitical risks. Vandana Hari, founder of the Singapore energy consulting firm, noted that approximately 90% of Asia's primary energy consumption currently comes from oil, natural gas, and coal. With energy demand rising and few major new fuel resource discoveries, Asian economies will likely remain reliant on overseas supplies. Hari stated that "deepening import dependence equates to geopolitical dependence and exposure to geopolitical risks," adding that "we are in a period of geopolitical turbulence that will persist for decades, at minimum several years." Energy import costs account for 3% to 6% of GDP in Vietnam, Japan, Indonesia, and India as of 2025.
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