4th December 2023
The Glasgow Financial Alliance for Net Zero’s (GFANZ) APAC Network released its Final Report on Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific on 3 December 2023 at COP28 in Dubai. The workstream was co-led by DBS and HSBC, supported by the GFANZ Secretariat along with the Asian Development Bank, the Monetary Authority of Singapore and other stakeholders. ClientEarth was pleased to be the legal knowledge partner for the workstream.
Coal power generation is the largest source of carbon dioxide emissions globally. We must accelerate the phaseout of coal power to avoid the most severe impacts of climate change. Unlocking investment to enable the scaling of renewable powerand the accelerated transition away from coal is critical in the Asia-Pacific region, which has approximately 5,000 coal-fired power plant units. This transition is possible only with the buy-in of financial institutions, which have a critical role in financing the decarbonisation of the economy.
The report provides practical, voluntary guidance for net zero-committed financial institutions. The recommendations include the following:
Elizabeth Wu, Legal Consultant in ClientEarth’s Energy Systems, Asia team, said “Accelerated coal phaseout and scaling of clean, accessible and affordable power in the Asia-Pacific region is critical to avoiding the worst impact of climate change. Financing should be anchored in credible, science-based transitions plans and accompanied by legal safeguards to ensure the credibility and effectiveness of planned coal phaseout. This report provides valuable guidance on financing accelerated coal phaseout as part of a rapid and just transition in the region.”
The report was launched during COP28 on 3 December 2023, and is available here.