Asia's Emissions-Reduction Plan for the World
By significantly shortening the life of Asia’s coal-fired power plants, the new Energy Transition Mechanism will unlock new investment in sustainable and renewable sources of power. This model will help to solve the region’s climate challenges, and can potentially be scaled and exported around the world.
JAKARTA/MANILA – World leaders came together in Glasgow last November to map out a path to mitigate the worst effects of climate change. But while the United Nations Climate Change Conference (COP26) was undoubtedly a historic moment, most countries are just beginning their work to meet new goals to reduce carbon-dioxide emissions.
That is why the announcement by the Asian Development Bank (ADB) and the Indonesian and Philippine governments at COP26 stood out. In launching our partnership for a pilot Energy Transition Mechanism (ETM), we were not making a vague commitment to achieve a distant goal. Instead, we jointly formulated a concrete plan for an equitable, scalable, affordable, and just energy initiative to help Asian countries retire or repurpose half of their coal-fired power plants and increase their reliance on clean energy. The ETM is a transformative climate scheme that has the potential to become the world’s largest CO2 reduction program.
The ETM will take a financial approach to retiring or repurposing coal-fired power plants ahead of schedule, while scaling up investments in clean energy. This dual strategy will benefit communities, investors, regional economies, and the environment.