Just Energy Transition in the Media – February 3, 2025
We round up the latest just energy transition news stories in the media.
A recent report by environmental non-profit Klima Action Malaysia reveals that Malaysia’s workforce is largely unprepared for the energy transition. As only 6% of the workforce is unionised, most workers are concerned about economic issues, such as wages. This follows an announcement made by Malaysia’s state oil and gas company, Petronas, earlier this month to “rightsize” its workforce in light of troubling economic outlooks. The report further recommends a national workforce readiness assessment as well as upskilling programmes to address these challenges; for instance, by better utilising the Human Resources Development Fund.
Shortly before Donald Trump’s return to power, 12 U.S. utility companies, including Duke Energy and Vistra, urged Lee Zeldin, candidate for chief of the Environmental Protection Agency, to drop the agency’s legal defence of the Legacy Coal Combustion Residuals Rule, posing a risk to health and the environment. Originally developed under President Barack Obama but only enforced under President Biden’s administration, the rule requires utilities to clean up coal ash sites that contaminate groundwater.
The Decarbonisation of the Amazon project in Colombia’s Putumayo region is bringing solar-powered boats to Puerto Guzmán and Puerto Asís, reducing environmental and economic burdens by replacing diesel engines. Led by Fundación Paz y Reconciliación and Fundación TEJ, the initiative includes educational programmes to empower communities with knowledge about sustainable energy, thereby promoting autonomy, ecological protection, and a just energy transition.
South Africa’s presidency has confirmed that the U.S. has withdrawn from the country’s Just Energy Transition Partnership (JETP), to which it had pledged USD 1.5 billion in grants and commercial loans. The withdrawal, communicated by the U.S. Embassy on 28 February, reduces the total remaining JETP pledges to South Africa (from the likes of the European Union, France, Germany, and the UK) to USD 12.8 billion.
Indonesia’s coal consumption will not peak before 2037, with coal-fired power generation expected to exceed current levels by over 60% according to Ember. Driven by rising energy demand, Indonesia plans to add 26.7 GW of coal-fired capacity by 2031, most of it so-called captive thermal power plants launched by industrial enterprises for their own needs. As a result, demand for power-generating coal will rise from 183 million tons in 2024 to 298 million tons in 2037, which is still far lower than production levels in 2024 (800 million tons).
In Singapore, Mizuho Bank and Temasek-owned investment firm GenZero have signed a memorandum of understanding to develop transition credits aimed at accelerating the early retirement of coal-fired power plants in Asia. This is one of the first private sector collaborations of its kind. Transition credits are financial instruments that quantify the carbon emissions avoided by shutting down coal plants ahead of schedule, allowing plant operators to sell these credits in carbon markets to fund the transition to cleaner energy sources.
Vietnam plans to close two coal plants by 2030 and phase out inefficient ones by 2040 under a decision signed by the prime minister. The 440-MW Pha Lai and 100-MW Ninh Binh plants will shut down if they are still unable to adopt new technologies or reduce emissions. To meet its target of 29.2–37.7% renewable energy by 2030, Vietnam will co-fire biomass and ammonia as well as installing carbon capture systems. It will also stop approving new coal power projects.
In 2025, U.S. power generators plan to retire 8.1 GW of coal capacity, doubling the 4 GW retired in 2024. Concurrently, 63 GW of new capacity—primarily solar, wind, and battery storage—will be added, reflecting a 30% increase from 2024. While policies under the new Trump administration may temporarily bolster coal, experts anticipate this impact to be short-lived due to economic and environmental factors. However, the data centre boom in the U.S. has already led to delays in retiring coal and gas plants.
After protests were held over ethical concerns, Indonesia has revised its Mineral and Coal Law to cancel mining business permits (IUPs) for universities. Previously, IUPs were granted through auctions only, but the revision now allows the government to directly prioritise cooperatives, small and medium-sized enterprises, and religious organisations. Universities will not directly manage mines, but they may receive financial benefits from state-owned or private enterprises managing the sites.
In late February, anglers and social leaders from northern Peru gathered in Chiclayo to discuss the impact of hydrocarbons on marine-coastal ecosystems and the need for a just energy transition. Organised by CooperAcción, the event featured expert presentations on climate change, oil spills, and sustainable alternatives. Participants drafted a public declaration calling for economic and environmental reforms to protect the ocean and promote clean energy initiatives.
China began construction on 94.5 GW of new coal power plants in 2024, accounting for 93% of global coal plant development that year. This reflects a regional preference for coal-based energy that goes beyond immediate need, despite cheaper and cleaner alternatives being available. This risks reinforcing fossil fuel dependence and undermining China’s goal of peaking carbon emissions by 2030. Updating its emission reduction targets as part of its upcoming next 5-year plan will therefore be crucial.
Western Australia’s 2030 coal phase-out plan is at risk due to delays in renewable energy, storage, and transmission projects. Synergy, the state-owned electricity provider, has already allocated nearly 90% of its AUD 3.7 billion budget to wind and battery projects, yet it remains 400 MW short of its battery target and 500 MW behind on its wind-generation goals. Transmission upgrades are also lagging, with industrial consumers facing a connection fee of AUD 100,000 per MW, sparking criticism that it will drive away investment.
Germany has assumed the United States’ leadership role in Indonesia’s Just Energy Transition Partnership (JETP), following the U.S. withdrawal from the Paris Climate Agreement under President Trump. Special Presidential Envoy for Climate Change and Energy Hashim Djojohadikusumo confirmed this transition after meeting with a German delegation. With one of the largest bilateral project portfolios in Indonesia’s energy transition, Germany is further deepening its involvement as co-lead of the JETP.
Vietnam’s Just Energy Transition Partnership (JETP), launched in December 2022 to mobilise USD 15.5 billion for the country’s green transition, selected eight projects in 2024. However, implementation faces challenges, as noted by United Nations Development Programme Resident Representative Ramla Khalidi during a meeting with the Ministry of Industry and Trade. Despite the selections being made, no funds have yet been disbursed. In 2025, the JETP will continue monitoring projects for potential collaboration.
Following several previous funding commitments, the UK government has announced a GBP 200 million investment from the National Wealth Fund to support the transition of Scotland’s Grangemouth refinery, which is set to close this year and will affect more than 400 workers. The new funding aims to attract private investment and to repurpose the site for low-carbon industries, such as biofuels and hydrogen. A “training guarantee” will help refinery workers gain new skills for jobs in clean energy sectors.
Colombia is aiming to develop 50 GW of offshore wind capacity, doubling its current electricity generation. However, experts say the Ministry of Environment must refine regulations to address environmental and social impacts, highlighting gaps in draft guidelines. These gaps include risks to marine ecosystems and fishing communities, potentially leading to conflicts with Indigenous groups. Clear rules on biodiversity protection, compensation for affected communities, and prior consultation processes are essential for ensuring sustainable development and local acceptance.
Indigenous Peoples must be central to Southeast Asia’s just energy transition, because over 54% of transition minerals and much renewable energy potential lie on their lands. Mining and energy projects often violate Indigenous rights, which is prompting demands for Indigenous-led renewable solutions. A 2023 regional conference called for community-owned energy initiatives, backed by governments and investors. Successful mini-hydro and solar projects show how Indigenous leadership can drive clean energy while protecting livelihoods and biodiversity.
Indonesia’s energy transition is being hindered by centralised decision making, which prioritises large-scale projects and state-owned enterprises, slowing the deployment of renewable energy. As a result, renewables account for less than 15% of the energy mix, far from the 2025 target. A decentralised approach—with small-scale renewable projects, rural energy access, and community participation—could improve resilience and equity, accelerating the transition to a sustainable energy system.
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