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

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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