Photo 1. Dr. Nuki Agya Utama, Executive Director of the ASEAN Centre for Energy gave remarks during the Launching Event of the Position Paper on the Assessment of the Role of Coal in Energy Transition and Coal Phase-Out

Jakarta, 22 May 2024 – Today marks the launch of the Position Paper on the Assessment of the Role of Coal in Energy Transition and Coal Phase-Out to respond to the ASEAN Taxonomy for Sustainable Finance Version 2 (March 2023) and Version 3 (March 2024), specifically addressing the role of coal and coal phase-out amidst the ASEAN energy transition. The event in Jakarta, Indonesia, brought together key stakeholders to discuss the implications and strategies for coal phase-out to ASEAN’s energy security.

Reflecting on the fact that coal would remain prominent in the ASEAN energy landscape, particularly in the power and industry sector as the main source to maintain grid stability to ensure energy security and energy affordability, Dr. Nuki Agya Utama, Executive Director of ASEAN Centre for Energy, remarked, “This position paper underscores ASEAN’s commitment to sustainability. By requiring a coal phase-out for projects to be classified as ‘green’ or sustainable, with [no] regard to the type of coal-fired power plants whether abated or unabated, and omits electricity generation activities from abated coal power plants, [this] could hinder the financing of Clean Coal Technologies/Carbon Capture Utilisation and Storage projects, which obstruct the region’s energy security and value for a just and inclusive energy transition.”

  Photo 2. Beni Suryadi, Manager of ASEAN Centre for Energy, presented the Position Paper on the Assessment of the Role of Coal in Energy Transition and Coal Phase-Out

Beni Suryadi, Manager of ASEAN Centre for Energy who supervised the development of the position paper, added, “The position paper emphasised the importance of careful and guided energy policies related to coal use in ASEAN to maintain security and affordability of energy supply as well as optimise economic growth. From today’s panel discussion, we also understand the importance of financing for a careful, gradual phase down of coal in ASEAN and how to secure it through the right policies and effective partnerships.”

The launch event gathered a panel of experts with differences in opinion; nevertheless, it concluded with a consensus on the need to diversify energy resources and opt for continuous cross-sectoral dialogue and collaboration amongst ASEAN stakeholders, to best ensure a balanced and sustainable energy future for the region, with high regard to energy security.