Asia Transition Finance Study Group (ATF SG) Annual Report 2024

30 September 2024

The Asia Transition Finance Study Group (ATF SG) Annual Report 2024 examines the evolving landscape of transition finance (TF) in Asia, focusing on managing and allocating risks in key transition projects, particularly in carbon capture, utilization and storage (CCUS), and battery energy storage systems (BESS). The report identifies significant barriers to scaling TF projects, such as technological readiness, regulatory risks, and financial viability, and emphasizes the importance of blended finance, public-private partnerships, and the role of regulatory bodies in creating enabling environments.

It highlights the complex risk landscape of TF projects and how effective risk mitigation strategies, such as leveraging insurance products and guarantees, are crucial for project bankability. The report includes case studies on CCUS and BESS, analyzing specific risks such as cashflow volatility, operational inefficiencies, and environmental challenges, and outlines potential solutions through collaboration among stakeholders, including governments, financial institutions, and advisors.

The report concludes by emphasizing the need for a supportive ecosystem to unlock TF in Asia, driven by regulatory stability, robust market structures, and cross-sector cooperation, to enable a just and orderly energy transition in the region.