Financing Asia's just energy transition

The Central Asian region was collectively dependent on fossil fuels for meeting as much as 97% of their primary energy needs. The study highlights that financial institutions are responsible for contributing to Asia’s reliance on fossil fuels. On average, renewable energy accounts for only 14% of Asian banks’ energy financing over the past six years, with no discernible upward trend. The study first maps the financial flows that have been directed to support Asia’s renewable energy production, then delves into thirteen country cases to assess social, political, legal, geographical, technical, and legislative hurdles, focusing on climate policies, energy market policies and regulations, energy infrastructure, financial sector regulations, policies and practices of financial institutions and social policies. Based on the findings of the study, recommendations were formulated for governments, companies, financial regulators, and financial institutions, all key actors in accelerating the just energy transition in Asia.