APAC coal divestments: debt investors hold the key

19 minute read

Economic growth in the Asia-Pacific region (APAC) is energy hungry, and being powered by coal. The current trajectory is for further increases, which will need to be decommissioned to achieve the 2030 and 2050 objectives of net-zero across the region.

While there are some encouraging renewable replacement initiatives in the region, there is also a concerning trend of assets being sold to private buyers. This activity takes assets out of public owernship, reduces transpancy, and risks hiding the true extent of remaining carbon emissions.

In this piece, we look at the need to engage on multiple fronts to support a credible transition for the region.

Debt investors stand as the first line of defence and must actively engage with coal asset owners, industrial groups and financial institutions responsible for financing the region's economic activity.

Debt investors need to engage with APAC's energy players and provide the necessary capital needed for the carbon transition, while watching out for investments that are not consistent with their environmental objectives. New debt instruments can help channel more capital with greater impact.

Download pdf (0.2mb)