Reclaim Finance response to GFANZ Consultation Paper: “Financing the Managed Phase-Out of Coal-Fired Power Plants in Asia Pacific”

Reclaim Finance argues that GFANZ's guidance on coal managed phase-outs (MPOs) in Asia Pacific must be significantly strengthened to ensure alignment with a 1.5°C scenario, protect civil society, and avoid 'junk' carbon offsets. The organization recommends that financial institutions end all support for new coal infrastructure and that MPOs prioritize the closure of the oldest plants by 2040, without diverting funds toward retrofits or carbon-intensive alternatives like biomass and ammonia.

• Managed phase-outs (MPOs) must be aligned with a 1.5°C low/no overshoot scenario, specifically citing the IEA's World Energy Outlook (WEO) 2022 Net Zero Emissions (NZE) scenario, which mandates a coal power phase-out by 2030 in OECD countries and by 2040 worldwide.
• Financial institutions (FIs) should tighten policies to stop funding companies planning new coal mines, power plants, or infrastructure, and phase out support for coal companies lacking credible MPOs that include just transition frameworks.
• MPO funding should be dedicated exclusively to shutting down plants—prioritizing the oldest and least efficient—rather than being diverted to retrofits, carbon capture and storage (CCS), or co-firing with biomass, green hydrogen, or ammonia, as these may extend the operational life of coal plants.
• The use of tradeable carbon credits as a revenue stream for MPOs is strongly opposed because they often rely on flawed baselines, risk reputational damage, and allow polluters to delay their own decarbonization.
• MPO processes must ensure the meaningful participation of civil society, trade unions, and local communities, noting that environmentalists in some APAC countries, such as Vietnam, face severe repression and arrest.
• Fossil fuel subsidies represent a significant potential revenue source for MPOs; for example, Indonesia's fossil fuel subsidies reached US$37 billion in 2022, exceeding the estimated annual investment needed for its energy sector transformation.

APA

Reclaim Finance (2023). Reclaim Finance response to GFANZ Consultation Paper: “Financing the Managed Phase-Out of Coal-Fired Power Plants in Asia Pacific”. https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Comments-on-GFANZ-MPO-Consultation-Aug-2023.pdf

Chicago

Reclaim Finance. Reclaim Finance response to GFANZ Consultation Paper: “Financing the Managed Phase-Out of Coal-Fired Power Plants in Asia Pacific”. 2023. https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Comments-on-GFANZ-MPO-Consultation-Aug-2023.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Reclaim Finance response to GFANZ Consultation Paper: “Financing the Managed Phase-Out of Coal-Fired Power Plants in Asia Pacific” |date=3 August 2023 |url=https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Comments-on-GFANZ-MPO-Consultation-Aug-2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2023reclaim, author = {{Reclaim Finance}}, title = {{Reclaim Finance response to GFANZ Consultation Paper: “Financing the Managed Phase-Out of Coal-Fired Power Plants in Asia Pacific”}}, publisher = {Reclaim Finance}, year = {2023}, month = aug, url = {https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Comments-on-GFANZ-MPO-Consultation-Aug-2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }