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 will mobilize resources for 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 Asian Development Bank’s (ADB) developing member countries (DMCs).
What are the priorities?
The fund will accelerate the retirement of coal plants and transition DMCs to clean energy to reduce greenhouse gas emissions.
What kind of activities are eligible for the fund?
The fund will support projects involving 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 energy;
- 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;
- supporting the transition to cleaner energy in a just manner (just transition).
Who is eligible to receive the fund?
All DMCs are eligible for support under ETMPTF. In order to receive support, DMCs must 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 regions 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 Government of Japan is the first financing partner of the fund.