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Asian Civil Society Networks Elevate Vital Questions and Considerations in New Report Concerning the ADB’s Power Transition Mechanism


Phnom Penh, Cambodia and MANILAPhilippines , Jan 26, 2023 /PRNewswire/ — Honest Finance Asia (FFA) and NGO Discussion board on ADB (the Discussion board) have launched a brand new report, “The Asian Improvement Financial institution’s Power Transition Mechanism: Rising Social, Environmental and Rights-Primarily based Issues.” The report raises crucial questions and considerations concerning the Power Transition Mechanism (ETM), which is being superior by the Asian Improvement Financial institution (ADB) as a market-oriented resolution to speed up the method of taking coal energy off of nationwide power grids in particular Southeast , South and Central Asian nations and changing it with different sources of energy.

FFA and NGO Discussion board on ADB (December 2022). The Asian Improvement Financial institution’s Power Transition Mechanism: Rising Social, Environmental and Rights-Primarily based Issues.

FFA and the Discussion board developed this report back to function a supply of key data for teams monitoring how the ETM is being operationalized, in addition to for communities residing round, and dealing at, coal undertaking websites chosen for ETM implementation. As ADB advances plans to pilot the ETM in Indonesia, Philippines, Pakistanand later in kazakhstan and Vietnamthe report reiterates key dangers and considerations being raised by civil society, neighborhood, and employees’ organizations concerning the design and proposed implementation of the ETM.

as defined by Mr. rayyan hassanGovt Director, NGO Discussion board on ADB“By preserving an in depth watch on the event of the ADB’s ETM because it was introduced in 2021, civil society teams within the area have gotten more and more involved that the ETM is flawed by design, seemingly leaving communities and employees on the very websites the place the ETM will likely be proposed to be piloted in the dead of night, because the phrases and situations of early energy plant retirement are negotiated below non-disclosure agreements, whereas turning a blind eye to the calls for by broad social actions throughout the area for publicly accountable processes to part out coal and different fossil gas industries directly.”

Specifically, FFA and the Discussion board’s new report highlights that, so far, the ETM:

  • Doesn’t require taking part governments or corporations to droop the event of deliberate or below building coal energy initiatives and decide to phasing out coal energy by 2040, as per the Paris Local weather Settlement. The sheer variety of coal energy initiatives nonetheless anticipated to be added to nationwide grids sooner or later (those who at the moment are within the planning, pre-permitting, allowing, and building phases) might overshadow the quantity slated for retirement. For instance, whereas the ETM will likely be piloted in Indonesia on the 660MW Cirebon 1 web site, an growth unit of 1000MW (Cirebon 2) that’s being developed by the identical father or mother firm, Cirebon Energy, is about to start industrial operations within the close to future.

  • Lacks readability on the extent to which ADB’s social and environmental safeguards will apply at pilot coal energy undertaking websites over the course of retirement (estimated by the ADB to take between 10-15 years), and whether or not surrounding communities may have entry to submitting grievances below the ADB’s accountability mechanism. The ADB’s ETM additionally lacks provisions to require pilot coal energy undertaking operators to stick to internationally accepted human rights requirements, corresponding to binding United Nations treaties or the UN Guiding Rules on Enterprise and Human Rights (UNGPs).

  • Lacks channels for neighborhood teams, labor rights teams/native union bargaining models or different involved civil society teams to meaningfully form the phrases of coal energy undertaking retirement (and therefore their future), as negotiations for web site particular retirements happen behind closed doorways. In Indonesiafor instance, plans to pilot the ETM are shifting ahead on the Cirebon 1 Coal Energy Undertaking, however are being mentioned with out the involvement of neighborhood teams and employees, who haven’t been totally knowledgeable or given the chance to offer their views.

  • Lacks readability on the definition of unpolluted power choices to be developed and parameters for repurposing initiatives. Loosely defining assist for low carbon/clear power choices dangers incentivizing the event of unsustainable resource-intensive choices that haven’t any place in a simply power transition, together with waste-to-energy incinerators, amenities to burn woody biomass, initiatives that change coal or are co-fired with hydrogen sourced from fossil gasoline, giant hydropower dams, or carbon seize and storage infrastructure.

  • Lacks transparency in relation to the precise phrases and situations for coal energy undertaking retirement. The ETM mannequin doesn’t depend on any fee caps to coal energy undertaking operators to speed up retirement, nor does it require the phrases of retirement to be disclosed. Compensation to coal working corporations due to this fact dangers being paid at a extremely inflated price.

“Simply power transition isn’t so simple as shifting from fossil fuels to much less carbon-intensive sources of power,” mentioned ms. Bernadette VictorioProgram Lead, Honest Finance Asia. “The ‘simply’ component have to be mirrored within the high quality and tempo at which the transition occurs. Are the rights of communities, employees, and indigenous peoples revered and safeguarded? Are there broad, inclusive, democratic, and clear consultative processes occurring between key Stakeholders?Are we guaranteeing that this complete course of isn’t lopsidedly benefitting fossil gas corporations and their buyers?These are solely a number of the very fundamental components that have to be thought-about within the ADB’s ETM rollout course of.Our newest research particulars different key suggestions, and we share them throughout this crucial juncture because the ETM’s pilot undertaking is being mentioned.”

The report additionally offers a set of preliminary suggestions in circumstances the place the ADB and ETM implementing companions, such because the WBG, have been concerned in supporting the coal sector and industries. Accordingly, Mr. Hassan added, “Lastly, after a long time of bankrolling coal energy initiatives within the area, the ADB dedicated to cease financing new coal energy initiatives in 2021. But, the ADB constantly fails to meaningfully handle the calls for for justice and accountability raised by communities whose well being and livelihoods have been ravaged by the ADB’s investments in coal-related infrastructure, together with in the Philippines, Pakistan and Mongolia. What number of extra years should they wait?

“There’s an actual alternative for the ADB’s ETM to assist Asia’s transition away from fossil fuels, however till the crucial questions and gaps round socio-environmental safeguards are appropriately addressed, then this looks as if one other business-as-usual deal for fossil gas corporations and their buyers,” mentioned Ms. Victorio.

To entry the complete report, click on right here.

For extra data, contact:

Kyle Cruz

Communications Coordinator, Honest Finance Asia

Tanya Lee Roberts Davis

Power Coverage and Campaigns Strategist, NGO Discussion board on ADB

About FFA

Honest Finance Asia (FFA) is a regional community of Asian CSOs dedicated to making sure that monetary establishments’ funding choices within the area respect the social and environmental well-being of native communities.

For extra details about FFA, go to

About NGO Discussion board on ADB

The NGO Discussion board on ADB (the Discussion board) is a community of civil society organizations (CSOs) that has been monitoring the initiatives, packages, and insurance policies of the Asian Improvement Financial institution (ADB) and the Asian Infrastructure Funding Financial institution (AIIB).

For extra details about the Discussion board, go to

SOURCE Honest Finance Asia

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