Asia: Japan announces a $ 25 million grant for the energy transition
The government of Japan has announced a $ 25 million grant for the Energy Transition Mechanism (ETM) partnership led by the Asian Development Bank (ADB). The announcement was made at the launch of the ETM Southeast Asia Partnership at COP26 in Glasgow by the Deputy Minister for International Affairs at the Ministry of Finance of Japan Masato Kanda. The grant is the first seed funding to be announced for the ETM, which has been studied and piloted in Southeast Asia, starting with Indonesia and the Philippines.
"The ETM has the potential to be a breakthrough in cutting greenhouse gas emissions in Asia and the Pacific, accelerating the transition from carbon-intensive to clean and reliable energy," said the ADB president. Masatsugu Asakawa. "We are grateful for the support of key partners such as Japan and others who support the ETM and the need to take transformational action in the battle against climate change."
"Japan stressed the importance of transitional finance to reach the 1.5 ° C target, especially in the Asia Pacific region, where countries are heavily dependent on coal-fired electricity," said Mr. Kanda. "Japan therefore fully supports the innovative ETM, which plays a critically important role in promoting the smooth transition from coal to cleaner energy, while ensuring universal access to affordable and reliable energy. I believe our grants will become seed capital to attract much larger amounts of donor contributions and private investments, so that we can achieve a successful transition with our important partners, including Indonesia and the Philippines".
The ETM is a transformative and blended-financing approach that seeks to retire existing coal-fired power plants on an accelerated schedule and replace them with clean energy capacity. The mechanism will include two multi-billion dollar funds: one dedicated to early retirement or the conversion of coal plants on an accelerated schedule, and the other focused on new investments in clean energy in the generation, storage and upgrades of the network. Multilateral banks, private institutional investors, philanthropic contributions and long-term investors are expected to provide capital for the ETM.
Read the original document at: Japan Announces $25 Million for ADB-Led Energy Transition Mechanism in Southeast Asia
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