The power sector in Southeast Asia (SEA) is central to the region’s economic development and decarbonization pathway. Accounting for 65 percent of the emissions reductions needed to meet national commitments, the sector presents both substantial transition risks and major investment opportunities. Yet, clean-energy investment in SEA remains insufficient to align with national and global climate goals. This report published by RMI provides a technical reference to support financial institutions (FIs) in conducting robust transition assessments of power sector companies in SEA. Moving beyond headline climate targets and capital allocation figures, transition assessments need to integrate operational and contextual realities through three core analytical pillars:
- Transition footprint mapping — Identifying a company’s current emissions-intensive activities and assets to locate areas of risk and opportunity
- Investment alignment — Evaluating whether the company’s investment pipeline aligns with its stated targets as well as sector and regional pathways
- Dependency mapping — Assessing how market dynamics, technology developments, and policy environments influence what is possible and on what timeline
The SEA power sector is an example of the significant financial opportunity presented by the energy transition. The analyses in this report are intended to support FIs to take advantage of that opportunity through decision-useful transition assessments of SEA power companies.
Access the report here