Energy Transition Mechanism Partnership Trust Fund

What is the fund?

The Energy Transition Mechanism Partnership Trust Fund (ETMPTF) is a multi-partner trust fund established in June 2022 under the Clean Energy Financing Partnership Facility. It mobilizes resources for the Energy Transition Mechanism (ETM), which aims to catalyze public and private capital to accelerate the transition from carbon-intensive coal-based power plants to clean energy in ADB’s developing member countries (DMCs).

What are the priorities?

The objective of the ETMPTF is to support ETM activities for the early retirement of coal-based generation assets and the transition to clean energy in DMCs to reduce greenhouse gas emissions.

What kind of activities are eligible for the fund?

Activities to be supported by ETMPTF resources, whether by technical assistance, grant, or concessional financing, must involve or relate to one or more of the following activities:

• reducing greenhouse gas emissions from coal-fired power plants through early retirement or repurposing of such plants for clean energy¹;
• increasing the share of clean energy, including through support for enhanced grid capacity;
• helping DMCs develop and enact policy and regulatory measures to accelerate the shift from coal to clean energy; and
• supporting the transition to clean energy in a just manner (just transition).

Who is eligible to receive the fund?

All DMCs are eligible for support under ETMPTF. To receive support, DMCs must have committed to an ETM feasibility study or pre-feasibility study or provide strong evidence of commitment to the early retirement or repurposing of fossil fuel-fired power plants. The ETMPTF will prioritize DMCs in Southeast Asia as well as other DMCs that have already expressed interest in exploring ETM and ETM-related activities. Priority project locations for the first two years will be DMCs in Southeast Asia participating in the ETM pilot: Indonesia, Philippines, and Vietnam.

Who supports the fund?

The ETMPTF has received significant contributions from the governments of Japan, Germany, and most recently, New Zealand. These contributions have bolstered the fund's capacity to support a variety of ETM activities.

To date, the ETMPTF has allocated resources to several technical assistance projects, including lending programs in Indonesia. The fund also supports just transition activities and ETM feasibility studies in Indonesia, the Philippines, Vietnam, and other regions.

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¹ Such activities may include fuel switching to zero carbon fuels and carbon capture and storage.