The Philippines’ Energy Transition Mechanism – A False Exit from Coal?

The Energy Transition Mechanism (ETM), launched by the Asian Development Bank (ADB) in 2021, is a public-private initiative to accelerate the retirement of coal-fired power
plants across Asia. Using blended finance—including concessional loans, equity, and guarantees—the ETM proposes to buy out, retire, and potentially repurpose coal assets, making room for “clean energy” alternatives.
However, the ETM’s real-world application has revealed significant structural flaws, including a lack of transparency, incentivizing the private sector, and failing to integrate justice and community participation. In the Philippines, the ETM is a key pillar of the Climate Investment Funds’ Accelerating Coal Transition (CIF ACT) program.