Guidance for Financing the
Coal-Managed Phaseouts (MPO)
in APAC with GFANZ
Guidance for Financing the Coal-Managed Phaseouts (MPO)
in APAC with GFANZ
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Background of the Project
Driving the managed phaseout (MPO) of coal power generation in the Asia-Pacific (APAC) region is considered critical to achieving decarbonization goals. MPO refers to strategies designed to finance or enable the early retirement of coal-fired power plants. However, significant challenges remain from both capital providers and coal asset owners, highlighting the need to bridge the gap between transition credibility and financial viability.
In 2022, the Glasgow Financial Alliance for Net Zero (GFANZ) Asia-Pacific (APAC) network established a core working group of financial institutions, supported by a consultative panel and knowledge partners, to develop an approach to managed coal phaseout in the region. This approach integrates three key dimensions: transition credibility, financial viability, and socioeconomic inclusivity.
Climate Smart Ventures (CSV) was engaged by the GFANZ APAC network as the Workstream Secretariat, alongside Bain & Company as a partner, to support the core working group of financial institutions and knowledge partners in advancing this initiative.
What We Did
- Workstream Secretariat: Participated in the workstream secretariat as a key ecosystem builder of the GFANZ APAC to develop an approach for coal-managed phaseouts in the region.
- Stakeholder Coordination: Provided support in stakeholder coordination between leading commercial and multilateral development banks, determining the key principles of, and how to participate in, a managed phase-out of coal at the asset-and transaction-level.
- Research and Analysis: Contributed to the analysis and research in the establishment of principles, developed insights and produced impactful thought leadership pieces through practical transaction advisory deals in the region.
Outcomes
- Released a public consultation guide to support the financing of early retirement of coal-fired power plants as part of a just net-zero transition. Access the final report, which was based on the consultation guide, here.