Dear IEEFA Asia Community,
I hope you all had a restful and refreshing break.
This year, we remain committed to delivering critical insights, high-quality research, and data-driven analyses that inform and accelerate Asia’s energy transition and will continue to strengthen engagement with stakeholders across the energy transition ecosystem.
January was already a busy month, with our team contributing at international forums, engaging with key stakeholders, and conducting in-depth research on the region’s evolving energy and finance landscape.
Key takeaways from our recent research highlights include:
- Asia remains disproportionately vulnerable to climate shocks, with direct economic losses averaging USD75.7 billion annually between 2000 and 2023, yet adaptation finance remains limited. Adaptation should be integrated into national planning, budgeting, and taxonomies, along with stronger project preparation and local implementation capacity. Clear guidelines and incorporating the full economic benefits would reinforce the financial case for resilience investments.
- The Energy Transition Mechanism (ETM) and the Just Energy Transition Partnership for Indonesia (JETPI) aim to accelerate renewable energy development and expedite the shutdown of coal-fired power plants in the country. However, limited financing, ambiguous legal frameworks, and inadequate involvement of domestic institutions constrain the programs’ potential, reducing credibility and domestic resonance among investors and national stakeholders.
- The International Energy Agency’s (IEA) World Energy Outlook (WEO) 2025 projects that carbon capture, utilization, and storage (CCUS) will contribute less than 5% to offsetting emissions by 2050. CCUS faces high investment and operating costs, bespoke project designs, and inflation-sensitive components and materials, making it economically uncompetitive compared to renewable energy and storage technologies.
We are excited about the work ahead and look forward to engaging with you throughout the year.
Warm regards,
Paige Nguyen
Director, Asia
Institute for Energy Economics and Financial Analysis
