ASEAN Coal Transition Technologies: Study Report on Coal Transition Financing Guidelines

Coal remains a critical component of ASEAN’s energy system, supporting electricity generation, industrial development, and energy security across the region. At the same time, achieving ASEAN’s long-term decarbonisation objectives will require a carefully managed transition that balances environmental sustainability, economic development, and energy affordability. This study examines the role of coal transition technologies and develops financing guidelines to support the gradual transformation of coal-fired power generation in ASEAN. The report assesses the deployment potential of technologies and pathways such as biomass co-firing, carbon capture and storage, battery energy storage systems, and power plant repurposing, while recognising the continued role of coal in the region’s energy mix during the transition period. It identifies key barriers to investment, including high capital costs, limited access to transition finance, regulatory uncertainty, and project-related risks. To address these challenges, the study proposes a staged financing framework that combines concessional finance, blended finance, green and transition bonds, public–private partnerships, and carbon market mechanisms. The framework is intended to mobilise investment, reduce transition risks, accelerate the adoption of lower-emission technologies, and support a just, orderly, and economically sustainable coal transition across ASEAN.