Southeast Asian governments must back the Asian Development Bank’s (ADB) plans to expedite the closure of coal plants in the region with strong regulation to win funding for the programme, an energy consultancy said in a report on Friday.
The ADB is leading a group of financial firms that plan to create a public-private partnership model to buy out coal-fired power plants and wind them down within 15 years, far sooner than their usual life.
The model, for which the ADB expects to release further details by the COP26 climate conference in Glasgow in November, could be a game changer for Southeast Asia’s energy transition to renewables, the Institute for Energy Economics and Financial Analysis (IEEFA) said in the report.
For the plan to work, the IEEFA said, regional governments must support the model with regulation and strong governance so that outside investors will commit the sums required.
[Fathin Ungku, Melanie Burton]