On 14 November 2022, ADB joined strategic partners in the signing of a memorandum of agreement (MOU) under the Energy Transition Mechanism (ETM) exploring the early decommissioning of the first coal-fired plant owned by Cirebon Electric Power (CEP), an independent power producer in Indonesia. The decommissioning of Cirebon-1, a 660-megawatt power plant in West Java could mean a substantial reduction in carbon dioxide emissions for the country. The MOU is the required first step to bring all stakeholders on board and discuss the early retirement of Cirebon-1. Once the details are ironed out, ADB is expected to provide an early retirement facility in the form of senior debt, on the condition that the tenor of the power purchase agreement between CEP and PT PLN (Persero) will be shortened. The signing was attended by ADB President Masatsugu Asakawa, Cirebon Electric Power (CEP) President Director Hisahiro Takeuchi, PT PLN (Persero) President Director Damawan Prasodjo, and Indonesian Investment Authority CEO Ridha D. M. Wirakusumah. ETM is a regional, transformative, blended-finance program that seeks to retire existing coal-fired power plants on an accelerated schedule and replace them with clean power capacity. ETM is one component of a larger set of initiatives both domestic and multilateral, that aims to help Asia and the Pacific mitigate the worst impacts of climate change, such as extreme sea level rise and destructive weather events. Related stories: ADB and Indonesia Partners Sign Landmark MOU on Early Retirement Plan for First Coal Power Plant Under Energy Transition Mechanism ADB Energy Transition Mechanism Marks Significant Milestones Germany Commits €25 Million to ADB’s Energy Transition Mechanism