Financing just energy transitions in Southeast Asia: Application of the Just Transition Transaction to Indonesia, Vietnam, and Philippines

Abstract

This paper investigates the applicability of the Just Transition Transaction (JTT), initially developed as a financial mechanism for South Africa's energy transition, to Southeast Asian (SEA) countries, including Indonesia, Vietnam, and the Philippines, which heavily rely on coal. Utilizing South Africa as a reference case study, we deconstruct the JTT and develop a novel framework of necessary and conducive features for evaluating its suitability for supporting a just energy transition in SEA. Our findings suggest that the JTT is well-suited for Indonesia and Vietnam but not as well suited for the Philippines. Recommendations for specific research avenues in estimating baselines and aligning emissions trajectories are provided. Finally, we propose a tiered JTT model to encourage a supranational transition in SEA and suggest the potential application of our methods for assessing similar mechanisms in other coal-reliant developing countries.