An Overview of Approaches to Transition Finance for Hard-to-Abate Sectors

Year Published

2023

Contributing Organizations

ADB Institute (ADBI)

Type of Resource

Research/Insights Report

Guidance

Languages

English

Relevant Topics

Core Topic

Transition Finance

Topic 2

Disclosure Standards

Topic 3

Transition Plans

Target Audience

Asset Owners

Banks

Financial Services Providers

Real Economy Corporates

Governments & Policymakers

Relevant Geography

Asia & the Pacific

Resource Description

This resource examines how to scale private finance for clean energy in Asia. It analyzes investment barriers, financing tools, and policy options to improve risk-return dynamics and mobilize capital.

Why This Matters

Private finance is essential to meet Asia’s energy transition goals. This resource offers practical steps to close the financing gap and accelerate clean energy investment.

Key Insights

Asia faces a $127 trillion annual clean energy financing gap to 2030
Barriers include policy uncertainty, weak capital markets, high risks, and few bankable projects
Assesses tools such as blended finance, green bonds, guarantees, and carbon pricing
Recommends better policy frameworks, de-risking instruments, institutional capacity, and stronger pipelines
Stresses the role of MDBs and DFIs in crowding in private capital
Provides regional case studies and strategies for early-stage and distributed project finance

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