The Asian Development Bank, which partnered Indonesia to launch its first coal retirement deal last November, said that completing one of these transactions is key to providing others with a model to follow.
Watchdog representatives point to the multilateral lender’s wanting track record in ensuring that project-affected communities are adequately consulted when private sector players are involved. The ADB says that a traditional model of lending and grant-making is no longer sufficient to meet funding needs.
The international association notes that transition finance is often criticised for opening the door to greenwash, but recommends a nuanced approach where firms that need help in shifting away from carbon-intensive activities comply with disclosure requirements instead.
How will Asia's energy transition mechanism — potentially the world’s largest CO2 reduction programme — phase-out coal in the energy-hungry region?
Masatsugu Asakawa, Sri Mulyani Indrawati, Carlos Dominguez
As governments’ efforts to tackle climate change accelerate, asset owners with significant long-term capital tied up in coal-fired generation will need to reconsider the role of their facilities to avoid their assets becoming stranded.
Narsingh Chaudhary and