A growing number of countries in developing Asia are committing to more ambitious carbon reduction targets to achieve a 1.5 degrees Celsius global temperature reduction needed to fight climate change. For example, Indonesia, Nepal, the People’s Republic of China, Thailand, and Viet Nam have pledged to move to net zero carbon emissions by 2050 while Kazakhstan will seek to phase out coal by mid-century and realize carbon neutrality by 2060. Yet, achieving these climate objectives will be highly challenging as coal remains a major source of fuel for the energy sector in developing Asia.

To support these goals, the Asian Development Bank recently launched a new Energy Transition Mechanism (ETM), a public-private finance vehicle that aims to lower emissions through the early retirement or repurposing of coal-fired power plants and use the proceeds for clean energy development. The ETM has the potential to be scaled up across Asia and the Pacific, as well as in Latin America and Africa, and could become the world’s largest carbon reduction model.

This virtual workshop spotlighted new research on the transition from coal to low-carbon energy in Asia and the Pacific. It focused on related policy challenges and possible solutions. It also highlighted the growth potential and implications of the Asian Development Bank’s Energy Transition Mechanism for both the decommissioning of coal-fired power plants and the promotion of clean energy development.

See more about this ADBI event here.