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Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific

Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific

Year Published

2023

Contributing Organizations

Glasgow Financial Alliance for Net Zero (GFANZ)

Type of Resource

Guidance
Research/Insights Report

Languages

Chinese
Korean
Japanese
English

Relevant Topics

Core Topic
Coal
Topic 2
Risks & Opportunities: The Business Case
Topic 3
Climate Policies & Frameworks

Target Audience

All

Relevant Geography

Asia & the Pacific
Global
Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific

Resource Description

This resource guides financial institutions on supporting the early retirement of coal plants in Asia-Pacific through a managed phaseout (MPO) approach.

Why This Matters

Phasing out coal in Asia-Pacific is critical to meeting 1.5°C goals. This resource outlines pathways for finance to drive credible, just, and scalable coal retirements.

Key Insights

  • Coal remains the largest CO₂ source, with Asia-Pacific especially dependent due to young fleets and rising demand
  • MPO finances early closures while ensuring energy security, unlike simple divestment
  • Credible plans require science-based timelines and strong policy, company, and asset-level commitments
  • Outcomes must cut emissions, expand clean energy, and support workers and communities
  • Transparent, time-bound, and measurable plans are essential for accountability
  • Financing tools include blended capital, carbon credits, and renewable bundling, with examples like Indonesia’s JETP and ADB’s Energy Transition Mechanism

Secondary File Resources

Secondary Resource Link(s)
Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific - (Chinese)
Video: Sectoral Pathways and Managed Phaseout of High-emitting assets
Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific - (Korean)
Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific - (Japanese)

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