Lalua Rahsiad

Assessment of the Role of Coal in the ASEAN Energy Transition and Coal Phase-out Summary: The report evaluates the significant role coal plays in the ASEAN region's energy mix, its implications for economic development, and the challenges associated with transitioning to alternative energy sources. The report, published by the ASEAN Centre for Energy (ACE), highlights several critical points: Current Role of Coal: Coal remains a crucial energy source in ASEAN, contributing significantly to electricity generation and economic development. It provides reliable, affordable energy crucial for industrial growth and energy security. Energy Transition Mechanisms: The ASEAN Taxonomy for Sustainable Finance includes guidelines for coal phase-out (CPO) activities, categorizing them as "green" or "amber" based on their alignment with climate goals. The classification requires further refinement to address ambiguities and ensure a just transition. Challenges in Coal Phase-out: Energy Security: Immediate retirement of coal plants risks energy security due to the region's reliance on coal for stable electricity supply. Economic Impact: Premature shutdowns of coal plants could lead to substantial financial losses and job losses in the coal industry, impacting the region's economy. Technological and Financial Barriers: Developing alternative energy sources such as nuclear, biomass, and geothermal faces significant hurdles, including public acceptance, regulatory frameworks, and high initial investment costs. Strategic Recommendations: Gradual Transition: A coal phase-down (CPD) approach is recommended over an immediate phase-out to provide time for developing renewable energy infrastructure. Clean Coal Technologies: Adoption of high-efficiency, low-emission (HELE) technologies and co-firing with biomass can reduce emissions while maintaining energy security. Investment in Renewable Energy: Significant investment is needed in renewable energy and storage technologies to replace coal and ensure a stable energy supply. Policy and Regulatory Support: Flexible Energy Systems: Policies should support the integration of renewable energy sources with flexible coal plants to stabilize the grid. Comprehensive Energy Planning: Long-term energy planning should include grid improvements, financial incentives for reducing coal emissions, and exploration of new energy sources. The report underscores the complexity of the energy transition in ASEAN and the need for a balanced approach that considers economic, environmental, and social factors. #ASEANEnergyTransition #CoalPhaseOut #RenewableEnergy #EnergySecurity #SustainableDevelopment #CleanCoalTechnology #EconomicImpact #EnergyPolicy #ClimateChange #SustainableFinance https://lnkd.in/gmchBH-e

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Check out this #infographic by the Ministry of Natural Resources and Nature Sustainability (NRES) Malaysia on the National Climate Change Policy 2.0, which aims to implement the country's transition towards a #lowcarbon #economy 👇

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Indonesia’s sustainable finance taxonomy is Asia’s ‘least stringent’ for classifying new coal plants as green: study The taxonomies of Singapore and Thailand are Southeast Asia’s most robust, according to a report by the Institute for Energy Economics and Financial Analysis. Summary: Indonesia's sustainable finance taxonomy has been criticized for being the most lenient in Asia, particularly for classifying new and existing coal plants as "green" or eligible for transition finance. According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA), Indonesia allows coal-fired power plants, including captive plants that provide energy to industrial facilities, to be classified as transition assets if they meet certain emission reduction targets or serve industries involved in producing transition metals like nickel and cobalt. This lax approach, which includes assumptions about the widespread use of carbon capture and storage (CCS) technology, has raised concerns about the credibility of Indonesia's taxonomy in the international sustainable finance space. IEEFA warns that such classification contradicts global standards for green financing, undermining efforts to reduce emissions effectively. In contrast, Singapore and Thailand have developed more stringent frameworks. Both countries use quantitative criteria based on lifecycle emissions, with Singapore limiting "amber" classifications to activities emitting up to 220 grams of carbon dioxide per kilowatt-hour (gCO2e/kWh) until 2030, and Thailand restricting "amber" classifications to existing fossil fuel power plants, excluding coal from green classifications entirely. Malaysia and the Philippines also have taxonomies but rely on principles-based approaches that lack clear quantitative thresholds, making their systems more ambiguous and potentially less interoperable with international standards. The report calls for a unified framework across Southeast Asia that aligns with global sustainability standards, as the region's diverse approaches pose challenges for consistency and transparency in sustainable finance. #SustainableFinance #GreenTaxonomy #Indonesia #CoalEnergy #TransitionFinance #ASEAN #ClimateAction #GreenEnergy #Sustainability #CarbonEmissions

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Malaysian Investment Development Authority launched the Domestic Investment Accelerator Fund (DIAF) - ESG Adoption Fund—to help Malaysian SMEs and mid-tier companies adopt ESG practices more effectively and faster for business sustainability. Check out our comprehensive hands-on guide to the grant application if you are seeking funds to improve or start your ESG and greenhouse gas emissions management strategy: https://lnkd.in/g35vd5V5 #MIDA #ESGgrant #funding

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Knowledge Sharing: I strongly recommend Cooperative societies to be classified as a reporting institution under AMLA in Malaysia. A cooperative can collect deposits from its members. The classification of cooperatives as reporting institutions under Malaysia's Anti-Money Laundering, Anti Terrorism Financing and Proceed of Unlawful Act AMLA) 2001 are essential for several compelling reasons: 1. Increased Risk Exposure: Cooperatives are often cash-intensive entities with less stringent regulatory oversight than traditional financial institutions, rendering them vulnerable to exploitation for money laundering activities. Identify the source of funds.(Cash is King). By designating them as reporting institutions, the government can implement stricter compliance measures, thus enhancing the framework to combat potential illicit financial transactions. 2. Enhancing Financial Integrity and complying with sanctions requirements: Incorporating cooperatives into the AMLA framework will significantly contribute to the integrity of Malaysia’s financial system. This inclusion mandates that cooperatives adopt comprehensive anti-money laundering protocols, conduct rigorous due diligence, identify Beneficial Owner, Politically Exposed Person(PEP), sanction screening and report any suspicious activities. 3. Protecting Cooperative Members: Many members of cooperatives may lack awareness of the inherent risks of money laundering within these entities. Implementing AML regulations will empower cooperatives to safeguard their members’ interests and assets, fostering a more secure financial environment. 4. Improved Oversight and Compliance: By establishing cooperatives as reporting entities, they will be subject to regular audits and reporting obligations, thereby enhancing governance and transparency. In conclusion, classifying cooperatives as reporting institutions under AMLA will fortify Malaysia’s efforts against money laundering, bolster financial integrity, and provide essential protections for cooperative members. "WE INFORM, PEOPLE LISTEN & THE NATION FOLLOW" Sir Nazri Kuala Lumpur #education #dakwahislam #dakwah #knowledgesharing #awareness #FollowTheMoney #communication #SirNazri #media #cooperative #governance #Governancechallenges #Amla #amlcft Co-operative Societies Act 1993 to be amended - Ewon https://lnkd.in/g7rXRfzV

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A key focus of the COP29 climate talks in Baku, Azerbaijan in November is climate finance. A new global climate finance target is expected to be set this year to help address the needs and priorities of developing countries. Though among the world’s most climate-vulnerable areas, Southeast Asia receives only a small fraction of adaptation and mitigation financing. Access to climate finance is hampered by a lack of bankable projects, regulatory uncertainty, and limited data and knowledge. An integrated approach is needed to address policy gaps and align climate ambitions with sector and fiscal planning. In 2018–2019, climate finance flows to Southeast Asia amounted to just $27.8 billion or 5% of the nearly $520 billion tracked for Asia and the Pacific. According to the Climate Policy Initiative, the region requires up to $1.7 trillion annually until 2030 to meet climate targets, while early estimates of ADB put climate finance needs of Southeast Asian countries at $210 billion per year. However, these figures will likely be adjusted as countries scale up national climate action plans to tackle a worsening climate crisis and to transition to a green economy. I couldn't agree more with the statement of Naeeda of ADB that to gain access to more climate finance, Southeast Asian countries need to expand their policy and create an enabling environment for climate action. Implementing institutional and planning frameworks to support a pipeline of high-quality climate projects is essential. #sustainability #climatefinance #projectquality #LeaveYourMark #ShapingaWorldOfTrust

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The ESG wave has definitely not payed a good service to sustainability in the FSI, positioning climate action in the unexciting space of compliance, miles away from having any impact on both the environment and the bank bottom-line. From retail banking to private banking, most players do not shine for their sustainable line-up. A recent study I ran on European private banks shows that defining three evolutionary archetypes for the industry based on strategic significance and scale: - a large number players are purely Compliant, focusing on minimal #ESG regulatory adherence; ​ - a limited group of small operators are Selectors prioritizing out-of-the-box ESG products but limited by scale; and ​ - only a handful of private banks like Lombard Odier Group are Leaders sustainability as a strategic differentiator.​​ Perhaps, something is slowing changing now. Morgan Stanley's recent report, "Sustainable Signals: Understanding Corporates’ Sustainability Priorities and Challenges," highlights that value creation is the primary motivation for companies to pursue sustainability strategies, with 85% of companies viewing sustainability as either primarily or partly a value creation opportunity. Regulatory compliance and moral responsibility also play significant roles. The survey, which included over 300 companies from North America, Europe, and Asia, reveals that access to capital is crucial for sustainability efforts, with 84% of respondents emphasizing the importance of investor support. However, the high level of investment required is the most significant barrier, with 70% identifying it as a considerable hurdle. Furthermore, sustainability is becoming more integrated into core business strategies, with 55% of respondents incorporating sustainability criteria into key business decisions. Despite this progress, only 37% of boards have sustainability expertise, indicating a need for further education in areas like sustainability regulations and financing instruments. As companies continue to align sustainability with their business objectives, there is a growing recognition of its potential to drive long-term value and reduce risks. https://lnkd.in/dFTyE7tW ​​

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International partners fall short in supporting S-E Asia’s energy transition Promises of climate-related finance not being met. Summary: International partners have fallen short in supporting Southeast Asia’s energy transition, with promises of climate-related finance not being met. Despite the urgent need for increased investment in clean energy, climate-related funding from international partners has been inadequate. In 2022, funding amounted to less than $11 billion, with only $830 million allocated to renewable energy projects such as solar, wind, hydro, and geothermal power. This represents a significant decline from $1.7 billion in 2018, highlighting both insufficient new funding and difficulties in launching new projects. The new Just Energy Transition Partnership (JETP) deals for Indonesia and Vietnam, promising $20 billion and $15 billion respectively, have shown slow progress and face numerous challenges, including political obstacles, slow decision-making, and inadequate financial terms. China’s renewable energy support has also declined, with most investments focusing on hydropower projects along the Mekong River, causing significant environmental and social issues. As Southeast Asia’s energy demand is expected to rise by at least a third by 2050, the region remains heavily dependent on coal, and renewables make up only 15% of power generation. A substantial increase in international climate finance is essential for achieving emission reduction targets and supporting the global net-zero transition. The upcoming COP29 summit in Azerbaijan will set a new target for global climate finance, but significant challenges remain in mobilizing sufficient funds and ensuring China’s participation as a contributor. The international community must act swiftly and decisively to support Southeast Asia’s critical energy transition and stabilize the climate. #EnergyTransition #ClimateFinance #SoutheastAsia #RenewableEnergy #Sustainability #ClimateChange #CleanEnergy #GlobalWarming #COP29 #JETP #NetZero #EnvironmentalImpact

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Indonesia to build 75 GW of renewable energy in the next 15 years, COP29 envoy says Summary: Indonesia’s ambitious new renewable energy plan, announced at COP29, aims to deploy 75 GW of renewable energy over the next 15 years. This is part of a broader commitment by President Prabowo Subianto’s administration to shift away from coal dependency and meet a 2060 carbon neutrality target. Renewable energy projects will include solar, hydro, geothermal, and potentially nuclear power, despite the challenges posed by Indonesia’s seismic activity. Notably, Indonesia’s state utility, Perusahaan Listrik Negara (PLN), is developing a 70,000 km green transmission line to support the growth of clean energy across the archipelago. Indonesia’s renewable energy ambitions face challenges, especially with the country’s current subsidies for coal making renewable tariffs less attractive to investors. However, the administration’s new initiatives also include carbon offset projects and a reforestation plan covering 12.7 million hectares, potentially supported by international funds, including interest from the Bezos Earth Fund. These efforts aim to bolster Indonesia's appeal to global investors and address both local and global climate priorities. #IndonesiaRenewables #COP29 #CleanEnergy #CarbonNeutrality #GreenEnergyTransition #Reforestation #SolarPower #Hydropower #GeothermalEnergy #EnergyInfrastructure

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🌍 The fight against climate change calls for urgent action on nitrous oxide (N2O), a potent greenhouse gas 273 times more powerful than CO2. Climate Advisers, the Institute for Governance & Sustainable Development (IGSD), and Asia Society Policy Institute are hosting an event to spotlight US and Chinese progress on industrial N2O abatement and opportunities for future action. Hear from experts including US Special Presidential Envoy for Climate John Podesta, Deputy Special Envoy for Climate Rick Duke, NRDC President Manish Bapna, and private-sector leaders who have led successful efforts to mitigate industrial #N2O emissions. 📅 Join us July 23rd at the National Union Building or virtually to explore how cooperative efforts can significantly reduce emissions and catalyze global action. Register Here👇(limited in-person seats available) https://lnkd.in/geg5yD33 #ClimateTech #GreenTech #IndustrialDecarbonization

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This is an interesting watch. Climate action cannot occur without an enabling environment; fiscal systems are paramount to its creation and maintenance. See what efforts are being made in Southeast Asia to align economic and environmental targets. https://lnkd.in/dyyPGkNj

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📢 The draft of Green Taxonomy Regulation has been published by the T.C. İklim Değişikliği Başkanlığı to align economic activities with sustainable development goals and ensure environmental sustainability. 🌍 The regulation seeks to encourage funding for sustainable investments while addressing greenwashing in the marketplace. It provides a framework of technical standards for assessing and reporting economic activities that support crucial environmental goals, including cutting greenhouse gas emissions, adapting to climate change, and advancing the shift to a circular economy. #GreenTaxonomy #Sustainability #ClimateAction #CircularEconomy #GreenFinance #EnvironmentalRegulation #Turkey To access the draft regulation and other documents: https://lnkd.in/d_iu-VJp

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I attended today's launch of the Future Skills Framework (FSF) at Sasana Kijang, Bank Negara Malaysia, an initiative poised to significantly enhance the capabilities of our financial sector workforce. . Endorsed last year by the Development Finance Institutions during the ADFIM Council Meeting, the FSF, driven by the collective efforts of the Asian Institute of Chartered Bankers, Malaysian Insurance Institute, and the Islamic Banking and Finance Institute Malaysia, aims to align with the dynamic demands of our financial landscape. Our member institutions and ADFIM was involved in the workshop. . During the launch, Governor Abdul Rasheed Ghaffour highlighted the critical role of the FSF in preparing our financial services workforce for future challenges. As he mentioned, "The nature of work is evolving... This means that the skills that matter in the workplace will also evolve and become more diverse. What is clear is that the workforce needs to be agile and resilient to change." . The FSF will serve as a comprehensive guide for futureproofing talent, ensuring professionals are equipped with relevant skills across 159 job roles and 157 skills, crucial for navigating the complexities of a digital and sustainable economy. . This framework is not just a tool but a transformational shift towards a more skilled, adaptable, and innovative financial sector, ensuring that Malaysia remains at the forefront of economic progress and resilience. . #FutureSkillsFramework #FinancialSector #TalentDevelopment #InnovationInFinance #BankNegaraMalaysia

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Fusang's IILM sukuk has effectively enabled financial institutions with access to Islamic short-term money market instruments harnessing the power of tokenization to foster inclusion, consistent with Islamic principles. Notably, the IILM sukuk is an exceptional instrument that holds the sovereign rating of eight central banks and stands as the highest-rated short-term sukuk globally. Congratulation on winning the 𝐄𝐱𝐜𝐞𝐥𝐥𝐞𝐧𝐜𝐞 𝐢𝐧 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 award at the Global Islamic Finance Awards! #IFA24 #BankingAwards #FinanceAwards #IslamicFinance #IslamicBanking #ShariahBanking #ShariahCompliant #BankingInnovation #DigitalInnovation #Sukuk

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Forward guidance: Bank Policy Institute publications   I archive my "forward guidance" emails on monetary policy as articles on Linkedin. If you want to receive them directly (they are free), just email me at the email address below. You might also be interested in two outstanding banking-focused publications of the Bank Policy Institute: -         BPInsights is a weekly newsletter summarizing the week’s legislative and regulatory developments in banking as well as relevant speeches and testimonies and new BPI research.   -         Research Exchange is a monthly newsletter highlighting both BPI and external research, mostly on banking and bank regulation, curated by my colleagues in research.   To receive these free newsletters, you can subscribe at bpi.com/StayConnected.   If you want immediate updates on our publications, you can also subscribe at that website to our press releases or follow BPI on LinkedIn or X (@bankpolicy).   --Bill Bill Nelson | Chief Economist | Bank Policy Institute | [email protected]

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