Decarbonising Southeast Asia’s Hard-to-Abate and High-Emitting Sectors: Transition Finance, Technologies, and Policy Approaches
Print Article:
coming soon (under ISBN process)
This book examines the evolving role of transition finance in supporting the decarbonisation of ASEAN’s hard-to-abate sectors. It aims to help policymakers, financial institutions, and industry actors align transition finance with credible decarbonisation pathways, enabling ASEAN’s just and inclusive net-zero transition.
As ASEAN economies pursue their net-zero targets, financing credible and inclusive transition pathways has become increasingly urgent, particularly in emission-intensive sectors such as power and industry. The study reviews the current landscape, identifies challenges, and highlights emerging practices for mobilising transition finance within ASEAN’s unique energy, financial, and industrial contexts. It also assesses transition activities and enablers such as sustainability-linked instruments, blended finance, and policy support.
In-depth case studies across ASEAN countries illustrate real-world experiences in early coal retirement, power sector reform, and emissions reduction strategies in heavy industries.
The book's recommendations call for coordinated action across stakeholders to scale up transition finance that is both credible and inclusive. It places strong emphasis on first-of-a-kind (FOAK) projects in sectors without commercial precedents, supported by multilateral development banks (MDBs). Regional initiatives such as the Asia Zero Emission Community (AZEC) are identified as crucial platforms to harmonise technical standards, align policy frameworks, and support infrastructure planning.
Finally, the book proposes the establishment of a Regional Financing Facility for early-stage industrial decarbonisation, designed to channel concessional capital, catalyse blended finance, facilitate cross-border clean energy trade, and underpin the development of robust carbon markets.
