Unwrapping Coal in 2022

In 2022, global coal emissions were poised to reach record highs due to energy disruptions, yet the year also saw record coal capacity retirements and cancellations. Over 95 percent of global coal consumption now occurs in markets committed to net-zero emissions or coal phaseouts. Finance has become a primary lever for this transition, with approximately $45.2 billion committed over two years, primarily through Just Energy Transition Partnerships (JETPs) in South Africa, Indonesia, and Vietnam. However, these funds are viewed as stepping stones, as the total investment needed for system-wide transitions—including clean energy infrastructure and just transition efforts—far exceeds current commitments. The document emphasizes the need for greater transparency in deal design and a balance between top-down country programs and bottom-up asset-level pilots to mobilize the necessary private and public capital.

• Despite record-breaking global coal emissions in 2022 driven by droughts and the invasion of Ukraine, the year also saw record levels of canceled and retired coal capacity. Currently, more than 95 percent of the world's coal consumption is located 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, but this funding is heavily concentrated in three Just Energy Transition Partnerships (JETPs): South Africa, Indonesia, and Vietnam. These commitments are considered initial steps rather than sufficient funding; for instance, South Africa's investment need is estimated at $98.7 billion over five years, while only $8.5 billion has been committed.
• Transition finance must cover more than just the phaseout of coal plants; it requires a system-wide approach including new clean energy infrastructure, capacity building, and just transition efforts. Because activities like capacity building do not generate financial returns, they require grant funding, which is currently limited in packages like the Vietnamese JETP, where public funding is expected to be mostly concessional debt.
• Effective coal transitions require a combination of top-down country roadmaps and bottom-up asset-level transactions. Asset-level pilots, such as the Komati and Cirebon-1 deals, provide real-world cost data and structural learnings that inform larger national programs, while top-down platforms, like Indonesia's ETM Country Platform, coordinate various financiers and asset owners.

APA

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

Chicago

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

Wikipedia

{{cite report |author=RMI |title=Unwrapping Coal in 2022 |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}}, 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} }