Australia's gas giants Santos and Woodside Energy may find it harder to finance expansion plans as more lenders and investors opt for cleaner industries.
The Asia-Pacific is a top consumer of oil and gas, which should make the region ripe for the adoption of new energy sources to cut greenhouse gas emissions.
But many oil and gas companies have a "wait-and-see approach" and lack detailed plans for moving into new lower-carbon energy markets, according to research released on Thursday.
Major banks and many international investors already have policies to exit or reduce links to coal.
Oil and gas are likely to be the next commodities hit by the push to meet net-zero commitments, the independent Institute for Energy Economics and Financial Analysis report found.
Santos and Woodside Energy are on the report's shortlist of six companies that will face a growing challenge as investment mandates become more emission conscious.
Many bankers, underwriters and advisors are joining the push for less funding of fossil fuel operations, including no new direct investments in upstream production.
Capital for the sector, particularly for expansion plans, could become "more elusive" with bank loans harder to get and bond issuance less attractive, report co-author Christina Ng said.
Most will have to develop new capabilities, technologies and assets to capture a share in the market for renewable generation, green ammonia or hydrogen production, and electric transmission and storage, or divest.
Notably, BHP exited the sector with the disposal of its petroleum division to Woodside in 2022.
The report found three-quarters of the region's top-20 companies have developed strategies for diversifying revenue.
Plans range from Woodside and Korea Gas developing "modest" renewable energy projects to some companies targeting a proportion of income from new energy.
Santos is among those exploring technologies that are yet to be proven credible for decarbonisation, such as carbon capture and storage, the report said.
But China and India's state-owned oil and gas giants - and significant expansion plans - mean the region lags others.
"The size, scale and profile of these two economies suggest a need for their active participation in the global move away from fossil fuels," Ms Ng said.
A leading global grouping is attracting more climate and environment-focused members, but lacks representation from China and India.
The Glasgow Financial Alliance for Net Zero represents more than 550 organisations from banking, insurance, asset ownership and asset management.
Alliance members, including Australian banks, must align lending and investment portfolios with 2030 and 2050 climate goals.
The report lists CBA and NAB as lenders to Santos, while ANZ and Westpac are lenders to Santos and Woodside.
Westpac and ANZ are also lenders to India's biggest oil and gas firm, state-owned ONGC.