November 3, 2020 Read More →

PLN plans to issue energy transition bonds next year

The Jakarta Post:

The Asian Development Bank (ADB) and state-owned electricity giant PLN aim to issue PLN’s first-ever “sustainable transition bonds” next year as the power company seeks to improve its green energy credentials.

ADB Southeast Asia director general Ramesh Subramaniam said on Monday that such bonds would improve PLN’s ability to raise capital and reduce the company’s carbon footprint. The Manila-based lender defines transition bonds, a concept that only emerged last year, as a financial instrument issued by inherently high-emission, ‘brown’ industries to finance clean energy programs. Such industries include oil and gas, mining and steelmaking.

Since 2013, more than 100 financial institutions, led by the World Bank, have closed their wallets for new coal plant projects as major economies double down on clean energy commitments, wrote the Institute for Energy Economics and Financial Analysis (IEEFA) in a 2019 report. 

“Over 100 and counting. The implications of this are electrifying,” reads the report.

[Norman Harsono]

More: ADB, PLN to Pilot Issuance of Energy Transition Bonds in 2021

Posted in: IEEFA In the News

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