Energy Transition Mechanism (ETM) Project Dates: January 2021 - December 2024
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PROJECT OBJECTIVE

ETM is a scalable, collaborative initiative developed in partnership with developing member countries (DMCs) that will leverage a market-based approach to accelerate the transition from fossil fuels to clean energy.

Public and private investments—from governments, multilateral banks, private sector investors, philanthropies, and long-term investors—will finance country-specific ETM funds to retire coal power assets on an earlier schedule than if they remained with their current owners.

PROJECT DESCRIPTION

ETM will be a win for the climate, a win for local communities, and a win for developing economies. It will significantly shorten the life of legacy coal-fired power plants and unlock new investments in sustainable and renewable energy.

1. Accelerate climate action

Countries participating in ETM will be able to reach more ambitious emissions targets than under their current commitments.

2. Reduce energy costs

Speeding up the retirement of coal-fired electricity will increase the demand for clean energy by 2-3 times, lowering overall energy costs in the long run.

3. Drive investment

ETM will help unlock or “crowd in” investment in cost-effective renewable generation and support and enable clean technologies, such as smart grids, hydrogen, and electric vehicles.

4. Provide a scalable model

ETM has the potential to be scaled up to other parts of Asia and the Pacific, as well as Latin America and Africa, which could drive significant reductions in global emissions.


SECTORS OR AREAS OF WORK
  1. Energy finance
  2. Energy transition

Region/Location

BUDGET

USD 1,000,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. ADB - Asian Development Bank
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
BUDGET

USD 1,000,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. ADB - Asian Development Bank
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE