Asia-Pacific economies stand at a critical juncture in outpacing the rest of the world in its green transition. China, as one example, “invested over USD 50 billion in new photovoltaic (PV) supply capacity—ten times more than Europe! It created more than 300 000 manufacturing jobs across the solar PV value chain since 2011”, writes the International Energy Agency (IEA). As a result, in 2023, green industries contributed 40 per cent to China’s Gross Domestic Product (GDP) growth with value added from these industries equal to the total GDP of Switzerland. Singapore’s central bank (Monetary Authority of Singapore), meanwhile, is leading efforts to green the financial system and develop financial instruments to accelerate the phasedown of coal-fired power plants: In December 2023, it launched the Transition Credit Coalition (TRACTION) and two pilot projects in the region to finance early retirement of coal plants , as well as a new sustainable taxonomy to allow finance coal retirement under green finance considerations. Vietnam, on the other hand, launched its new Power Development Plan, (PDP8), which sets out clear policy and economic ambitions for a greener energy system.

Yet, a successful green transition in Asia Pacific is all but certain. Hopes for a green transition through the Just Energy Transition Mechanism (JETP) supported by Group of 7 (G7) countries in Vietnam and Indonesia, or similarly through the Energy Transition Mechanism under the Asian Development Bank (ADB) in countries including Pakistan mostly underdelivered. New coal-fired power plants are still being built across the region, for example, India plans to add 80 gigawatts (GW) by 2031, while China commissioned 47 GW in 2023.

Chasing the green-just transition opportunity in Asia Pacific requires decisionmakers in policy, business, and research to be bolder and more inclusive as well as to understand and develop solutions to sticky challenges both domestically and regionally.