Andrew was recently interviewed by Proximo re Energy Transition Mechanisms i.e. how to finance the early retirement of coal fired power plants and the coal mines which supply them. There is a cost to doing this which needs to be shared around, particularly in Asia where the plant is bigger and younger than in the developed World. And, if private sector financial institutions’ dry powder is to be attracted in as it needs to be, then developed country bilateral agencies and the multilaterals will need to take some first loss risk.
Here is an abridged version of the article: Proximo re ETMs Sep 21 (by way of explanation, the ETM model was first proposed by Donald Kanak of the Prudential).
The full Proximo article is behind a firewall but a trial can be requested.
The interview follows earlier opinion pieces on how to finance not only the retirement of coal – fired plant early but also the coal mines that supply them:
