According to the latest IPCC report, the Asia-Pacific region released 18.9 billion tons of CO2 from fuel combustion in 2020 and reached its highest-ever global share of energy-related emissions – 59.8 per cent.
In this context, the Just Energy Transition Partnership (JETPs) provide innovative lessons for the region in how to architect – i.e. design and execute financing for the energy transition in the region. The first JETP was announced at the 26th UN Climate Change Conference of the Parties (COP 26) in Glasgow for South Africa for $8.5 billion, and in late 2022, and Indonesia and Viet Nam announced JETPs for, respectively, $20 billion and $15.5 billion. In Indonesia, $10 billion of public money will be mobilised by the International Partners Group members (France, Germany, the United Kingdom, the United States of America, and the European Union), and at least $10 billion of private finance will be mobilised and facilitated by the Glasgow Financial Alliance for Net Zero (GFANZ) Working Group. In Viet Nam, initial contributions to Viet Nam’s JETP include $7.75 billion in pledges from the IPG together with the Asian Development Bank and the International Finance Corporation. This is supported by a commitment to work to mobilise and facilitate a matching $7.75 billion in private investment from an initial set of private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ).
This side event will provide an opportunity for countries in the region and globally to learn from Indonesia’s and Viet Nam’s experiences in architecting a comprehensive multi-stakeholder financing plans for their energy transition. Innovative methods of designing such multi-stakeholder financing platforms at scale to meet the climate challenges of the region will be discussed, taking into account the contexts of the region’s diverse member states.
ESCAP will host this side event with key actors in the JETP programme, as well as other countries tackling financing for the energy transition to discuss
- Opportunities that these two JETPs present for other countries in the region
- Assessment of financial requirements, including domestic public financing, and development of private financing strategies for a JETP
- Role of wider policy and regulatory improvements in attracting more financing, including enhancing fiscal space through tax and budget reforms, as well as regulatory improvements.
- Lessons learned by member states, banks and donors in how to architect such multi-stakeholder financing plans with joint commitments
- Views from private banks and investors on committing to energy transition projects in other countries in Asia and the Pacific
Photo credit: A wind and solar energy project in Loi Hai Commune, Bắc Phong District in the south-central province of Ninh Thuan. - VNA/VNS Photo Minh Hung