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The paper finds a significant gap between the necessity of integrating climate risks and actual investor practice in Southeast Asia's power sector. While physical risks are generally well-understood and factored into due diligence, transition risks—including policy, technology, and reputational risks—are often ignored or superficially addressed. Investors frequently use long-term Power Purchase Agreements (PPAs) to shift climate-related liabilities to state-owned utilities. The study identifies institutional habits, the need to deploy large amounts of capital quickly, and limited financial governance as primary barriers to shifting investment from fossil fuels to renewables.