Unwrapping Coal in 2022 - RMI

This briefing by RMI analyzes the state of the global coal transition in 2022, highlighting a contradiction where coal emissions are poised to break records while retired and canceled coal capacity also hit record levels. The document focuses on the emergence of Coal Transition Mechanisms (CTMs) and Just Energy Transition Partnerships (JETPs) as critical financial levers to accelerate the shift from coal to clean energy, particularly in South Africa, Indonesia, and Vietnam.

• In 2022, global coal emissions are expected to reach all-time highs due to droughts and Russia's invasion of Ukraine, yet the year also saw record levels of canceled and retired coal capacity. Over 95 percent of global coal consumption now occurs in markets that have committed to net-zero emissions or a coal phaseout.
• Approximately $45.2 billion has been committed to the coal-to-clean transition over the last two years, though the majority of this funding is concentrated in three packages: the JETPs for South Africa, Indonesia, and Vietnam. These amounts are described as 'stepping stones' rather than sufficient funding; for instance, South Africa's Just Energy Transition Investment Plan (JET IP) identifies a need for $98.7 billion over five years, while only $8.5 billion has been committed to date.
• Transition finance encompasses more than just the phaseout of coal plants; it includes capacity building, just transition efforts, and new clean energy infrastructure. A significant challenge is that activities like capacity building and just transition do not generate financial returns and require grant funding, yet current JETPs often provide limited grants, with the Vietnamese JETP relying largely on concessional debt.
• The role of private capital is increasing in coal transition deals. In the JETPs for Indonesia and Vietnam, private sector funding is expected to account for half of the committed funds, a significant increase compared to South Africa, where private finance represents less than 20 percent.
• The coal transition utilizes both top-down country programs and bottom-up asset-level transactions. Asset-level deals, such as the Komati and Cirebon-1 projects, provide real-world cost data and operational learnings that inform larger national strategies, such as the South African JET IP.

APA

RMI (2022). Unwrapping Coal in 2022 - RMI. https://rmi.org/resources/unwrapping-coal-in-2022/

Chicago

RMI. Unwrapping Coal in 2022 - RMI. 2022. https://rmi.org/resources/unwrapping-coal-in-2022/.

Wikipedia

{{cite report |author=RMI |title=Unwrapping Coal in 2022 - RMI |date=14 December 2022 |url=https://rmi.org/resources/unwrapping-coal-in-2022/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022unwrapping, author = {{RMI}}, title = {{Unwrapping Coal in 2022 - RMI}}, institution = {RMI}, year = {2022}, month = dec, url = {https://rmi.org/resources/unwrapping-coal-in-2022/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }