Understanding the Legal Implications of Early Decommissioning: Case Studies of Foreign-Invested Coal Power Plants in Asia

The research examines how contractual frameworks for coal-fired power plants in Indonesia, Pakistan, and Vietnam create financial barriers to early retirement, noting that host countries risk onerous fines from arbitration courts if they break contracts to meet climate targets.

• The legal frameworks governing foreign-invested coal-fired power plants (CFPPs) act as a significant barrier to early retirement, as host countries may face substantial financial penalties and onerous fines from arbitration courts if they break these contracts, potentially risking their own financial stability.
• Host countries may be required to compensate foreign investors or project companies under specific conditions, including the mandate of early decommissioning, the introduction of laws that increase operating costs (such as mandatory carbon pricing), or the reduction of CFPP utilization levels.

APA

World Resources Institute (n.d.). Understanding the Legal Implications of Early Decommissioning: Case Studies of Foreign-Invested Coal Power Plants in Asia. https://www.wri.org/research/understanding-legal-implications-early-decommissioning-case-studies-foreign-invested-coal

Chicago

World Resources Institute. Understanding the Legal Implications of Early Decommissioning: Case Studies of Foreign-Invested Coal Power Plants in Asia. n.d. https://www.wri.org/research/understanding-legal-implications-early-decommissioning-case-studies-foreign-invested-coal.

Wikipedia

{{cite report |author=World Resources Institute |title=Understanding the Legal Implications of Early Decommissioning: Case Studies of Foreign-Invested Coal Power Plants in Asia |url=https://www.wri.org/research/understanding-legal-implications-early-decommissioning-case-studies-foreign-invested-coal |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendunderstanding, author = {{World Resources Institute}}, title = {{Understanding the Legal Implications of Early Decommissioning: Case Studies of Foreign-Invested Coal Power Plants in Asia}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/understanding-legal-implications-early-decommissioning-case-studies-foreign-invested-coal}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }