Scaling Financing for Coal Phase out in Emerging Economies 2025

Maximum possible re-gearing + no concessional financing Reducing the concessional component of the early retirement loan to zero, while maximizing gearing increases based on what is possible for each plant while extending loan tenors delivers interesting results. In this scenario, the oldest plants can be retired between 2040 and 2043, middle-aged plants between 2042 and 2044, and newest plants between 2041 and 2044. Average abatement falls to almost 8 years, with a total of almost 118 Mt (metric tonnes) CO2 emissions avoided across all plants. In this scenario, total CRM debt size is $3.9 billion, with no concessional debt. The abatement impact achieved is lower. However, the saving in use of highly concessional financing to achieve these results is $1.3 billion. In this scenario, the overall reduction in CFPP lifespan is within one year or equal to what was achieved in the SLTEC transaction for two of the 10 plants (25 years). For three others, abatement impact would represent an improvement on SLTEC, with plant lifespan reduced to less than 25 years. CRM size by scenario FIGURE 7 Source: Coal-to-Clean Initiative simulations, with data from Transition Zero24Projected CRM size: Debt versus concessional funding ($ million) 02004006008001,0001,2001,400 CFPP 1 (200 MW)CFPP 2 (600 MW)CFPP 3 (100 MW)CFPP 4 (550 MW)CFPP 5 (250 MW)CFPP 6 (350 MW)CFPP 7 (300 MW)CFPP 8 (400 MW)CFPP 9 (300 MW)CFPP 10 (350 MW) Concessional funding Re-gearing + maximum concessional funding Re-gearing + no concessional funding No re-gearing + maximum concessional fundingScenario 2 Scaling Financing for Coal Phase-out in Emerging Economies 13