The energy transition ramps up in Southeast Asia

A brand new coalition has been set up to boost the energy transition across Southeast Asia. In collaboration with public donors and private foundations, France, via Agence Française de Développement (AFD), the German Federal Ministry of the Environment, and the Children’s Investment Fund Foundation, have launched the South East Asia Energy Transition Partnership. The aim of this unprecedented coalition is to ramp up the energy transition across the region, with an investment package of $50 million.

This partnership, comprised of stakeholders who have already invested in this part of the world, has two objectives: to streamline coordination efforts through effective governance that includes all donors and countries in the region and to pool expertise on innovative working practices in order to focus the response to climate change.

The South East Asia Energy Transition Partnership (ETP) has committed to financing technical assistance over a five-year period, in order to ramp up the energy transition of countries in Southeast Asia through a $50 million investment fund ($20 million has already been approved, another $10 million is currently under discussion, and many more contributions are expected). This fund will be managed by the United Nations Office for Project Services (UNOPS).

In this initial stage, the ETP is primarily targeting Vietnam, Indonesia, and the Philippines, with initiatives based on four fundamental pillars. The first involves supporting the development of policies for renewable energy and energy efficiency. This goal can be achieved by building the capacity of governments in these countries in terms of planning and implementation. It also relies on improving renewable energy and energy efficiency policies, regulations, and laws.

Another area of focus is to attract greater public and private investment in renewable energy and energy efficiency.

“To achieve this, supporting policies, regulations, and fiscal and financial laws to facilitate this kind of investment is key,” said Mathilde Bord-Laurans, Head of AFD’s Energy Division. “It will also require increased project financing, risk mitigation instruments, and support for new and innovative initiatives.”

Integrating a larger proportion of renewable energy into ever-evolving smart grids is also an effective way of supporting the energy transition of Southeast Asian countries. For such initiatives to succeed, technical expertise for power grid planning and operation must be provided, as well as a financial stimulus to improve energy infrastructure.

The Children’s Investment Fund Foundation (CIFF), is a private law foundation, highly active in the fight against climate change, and one of the founder members of ETP.  It will provide policymakers in Vietnam, Indonesia, and the Philippines with the evidence and expertise required to make the clean energy transition, bringing green jobs, and cheaper and cleaner electricity.

The public sector is also playing its part, with the German Federal Ministry of the Environment (BMU) opting to align its Clean, Affordable, and Secure Energy for Southeast Asia (CASE) program with the ETP.

The United Kingdom, through its Department for Business, Energy and Industrial Strategy (BEIS), as well as Canada, are also expected to contribute in the near future.

Original source: AFD