Financing just energy transitions in Southeast Asia: Application of the Just Transition Transaction to Indonesia, Vietnam, and Philippines

• Main Authors: Jindal, Abhinav, Shrimali, Gireesh, Gangwani, Bharat, Lall, Rajiv B.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Emission pathways; Energy transition; Just Energy Transition Partnership (JET-P); Just Transition Transaction (JTT); South Africa; South-East Asia; Asian Studies; Energy Policy; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/skbi/43; https://ink.library.smu.edu.sg/context/skbi/article/1042/viewcontent/JTT_SEA_av.pdf
• Institution: Singapore Management University

This paper investigates the applicability of the Just Transition Transaction (JTT), initially developed as a financial mechanism for South Africa's energy transition, to Southeast Asian (SEA) countries, including Indonesia, Vietnam, and the Philippines, which heavily rely on coal. Utilizing South Africa as a reference case study, we deconstruct the JTT and develop a novel framework of necessary and conducive features for evaluating its suitability for supporting a just energy transition in SEA. Our findings suggest that the JTT is well-suited for Indonesia and Vietnam but not as well suited for the Philippines. Recommendations for specific research avenues in estimating baselines and aligning emissions trajectories are provided. Finally, we propose a tiered JTT model to encourage a supranational transition in SEA and suggest the potential application of our methods for assessing similar mechanisms in other coal-reliant developing countries.