Financing the Managed Phaseout of Coal-Fired Power Plants in Asia Pacific – (Glasgow Financial Alliance for Net Zero, GFANZ)

December 10, 2023

Publisher: GFANZ Asia‑Pacific Network​
Date: December 2023​
Source title: Financing the Managed Phaseout of Coal‑Fired Power Plants in Asia Pacific — Final Report​

Intro-summary


This guidance sets out how net‑zero financial institutions can credibly finance early retirement of APAC coal units via managed phaseout (MPO), balancing climate impact, affordability, reliability, and just transition goals. It proposes a three‑step assessment for MPO plans—credibility across government/entity/asset levels, optimization of climate, socio‑economic, and financial outcomes, and transparency aligned to GFANZ’s NZTP framework—plus a toolbox of financing levers: blended capital, financial engineering, KPI‑linked instruments, renewable bundling, carbon credits, and asset revaluation. Case studies and “size of prize” analysis illustrate emissions reductions, while enabling actions call for country platforms (e.g., JETPs), power‑sector planning, and FI coal policy updates to allow MPO participation.​

Mission relevance


Clear guardrails and instruments for coal MPO unlock real‑economy decarbonization while protecting workers and reliability—directly supporting repowering and early‑retirement strategies in APAC markets.​

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