Readers may be interested to review the details of the proposed ADB-funded feasibility study for the development of an energy transition mechanism intended to speed up the phasing-out of fossil fuel power stations in the Asian region. Currently assigned countries are Indonesia, Vietnam and the Philippines.
The mechanism will provide financing comprising a mix of equity, debt and concessional funding to take over coal power plants in order to accelerate their retirement, and at the same time to facilitate the development of renewable energy projects in the assigned region.
Undoubtedly, in countries like Indonesia, Vietnam and the Philippines, a key obstacle to moving towards a clean-energy economy is the cost of doing so, as well as the current emphasis there on fossil fuel for energy generation, so if this initiative is to work it will require the forced early-decommissioning of a large number of operating fossil fuel plants.
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