Power and Industry Transformation: Lessons from ADB's Energy Transition Mechanism to Industrial Decarbonization

Decarbonizing the energy sector is a complex and interconnected challenge that cuts across power systems, industrial activity, finance, and social considerations. This is especially true in Asia where coal remains deeply embedded not only in the power generation but also in the energy systems that support industrial manufacturing and minerals processing. As countries seek to advance energy security, industrial competitiveness, and decarbonization at the same time, experience shows that phasing out coal and other fossil fuels cannot be addressed through the power sector transition alone. Instead, a coordinated and integrated solution across economic sectors, linking power system transition with industrial decarbonization and enabling infrastructure and policy, is essential to deliver a credible, orderly, and scalable transition.

ADB launched the Energy Transition Mechanism (ETM) in 2021 as a financing mechanism to retire or repurpose coal and other fossil fuel plants. This session will first take stock of ETM progress to date, drawing on implementation experience and emerging lessons from power sector transition pilots shared by practitioners and government representatives with firsthand experience. It will then examine how industrial decarbonization, supported by enabling infrastructure, policy, and financing frameworks, can accelerate system-wide transition outcomes. The discussion will also explore future opportunities for deeper energy sector decarbonization, highlighting how coordinated and integrated action across power and industry can deliver faster, more efficient, and future-ready pathways for Asia's energy transition.