auctusESG | Insights | June H1 2025

auctusESG

Accelerating global sustainable finance & climate transition

Published Jun 14, 2025

Data dashboard

This graph illustrates the rising energy required to enable the energy transition till 2050. It breaks down how much primary energy (in TWh) is consumed annually to build and operate clean technologies like EVs, wind, solar, batteries, power grids, carbon capture (CCS), and green hydrogen systems. The right axis shows this energy use as a percentage of global primary energy. The data reveals a sharp increase: from minimal energy use in 2010 to over 12,000 TWh by 2050, equating to more than 6% of global primary energy. Solar and wind dominate early energy costs, followed by rapid growth in EVs, grid-scale batteries, and hydrogen losses by the 2040s.

This has serious implications. First, the energy transition isn’t "free", it demands a significant upfront energy investment, much of which may still rely on fossil fuels. Second, this energy demand could constrain available energy for other sectors if not planned carefully. For financial institutions and investors, this underlines the importance of funding energy-efficient technologies and infrastructure.

News roundup

India launches new regulation for social, sustainability, sustainability-linked bonds

India has introduced a comprehensive regulatory framework for social, sustainability, and sustainability-linked bonds (SLBs), effective from June 5, 2025. Issued by the Securities and Exchange Board of India (SEBI) , the framework mandates strict pre- and post-issuance disclosures, third-party reviews, and alignment with international standards such as ICMA Principles and the Climate Bonds Standard.

The rules aim to prevent “purpose-washing” by ensuring transparency, accountability, and credible impact reporting, and prohibit the use of proceeds for activities like fossil fuels, alcohol, or tobacco. Only listed corporate bonds are covered, positioning India’s ESG debt market for global credibility and investor confidence.

JSW Energy commissions 281 MW renewable energy project

JSW Energy Ltd has commissioned a 281 MW renewable energy project in Maharashtra, comprising 215 MW of solar and 66 MW of wind capacity. This addition is expected to boost the company’s renewable output, especially during the peak wind season.

The company targets 30 GW generation and 40 GWh energy storage capacity by FY 2030, aiming for carbon neutrality by 2050. This move strengthens India’s transition toward cleaner energy and supports grid stability through diversified renewable sources.

Spotlight

The promise of JETPs in Asia

Just Energy Transition Partnerships (JETPs) were introduced at COP26 in 2021 as a mechanism to accelerate coal phase-out and support clean energy transitions in emerging economies. Globally, JETPs have so far been launched in South Africa, Indonesia, Vietnam, and Senegal, with a combined funding commitment of approximately US $46.6 billion. These partnerships aim to mobilise concessional and market-rate finance from a coalition of countries known as the International Partners Group (IPG), including the G7 nations.

In Asia, Indonesia and Vietnam announced their JETPs in 2022. Indonesia secured US $20 billion and Vietnam US $15.5 billion in pledged support, both split evenly between public and private sources. A regional transition in South Asia could generate US $300 billion in new revenue and create 5.8 million clean energy jobs by 2050. For countries currently dependent on volatile fossil fuel imports, shifting to renewables also promises greater energy security and price stability.

JETPs offers a critical opportunity to ensure that communities and workers are not left behind. By investing in reskilling programs, social protection, and local development initiatives, governments can mitigate the social risks of coal phase-out while promoting inclusive economic growth. Both Indonesia and Vietnam have submitted national plans and begun institutional restructuring, including governance frameworks and renewable energy targets. However, progress remains uneven, particularly in retiring coal assets, developing robust green bond markets, and establishing social safety nets for affected communities.

The funding gap in Asian countries

Despite high-level pledges, the actual financing needs of both Indonesia and Vietnam significantly exceed JETP commitments.

Indonesia has estimated that it requires nearly US $67 billion by 2030 to fund 400 priority projects. While Indonesia relies heavily on concessional loans, amounting to 60% of the funding mix overall, the current JETP pledge of US $20 billion leaves a funding shortfall of around 70% of the required amount. Of the JETP amount, only US $1.67 billion has been explicitly allocated to the early retirement of coal plants, which is a core element of the partnership's vision.

Vietnam faces a similar challenge. With estimated energy transition needs amounting to US $134.7 billion by 2030, its JETP commitment covers merely 11% of this total, meaning JETP is 89% underfunded. Alarmingly, only US $10.74 million in public funds has been earmarked for retiring coal-fired power plants—a sum that barely scratches the surface. Vietnam also relies heavily on non-concessional loans, amounting to 52%, increasing its debt burden and limit the affordability of its energy transition. Additionally, Vietnam’s underdeveloped green bond market has hindered its ability to attract private capital and limited the scope for large-scale blended finance.

Making the transition work

Bridging the gap is not just a financial necessity, but also a strategically imperative one. The following recommendations could be used for bridging the gap:

Leverage blended finance and catalytic capital- Combining concessional public finance with private sector capital through blended finance structures can help de-risk investments and attract larger pools of private finance, as demonstrated by the initial JETP structures in both countries. Catalytic funds and credit enhancement instruments can also be used to make projects more attractive to commercial investors, especially for early coal plant retirements and renewable energy infrastructure
Expand and diversify funding sources- Domestic capital markets, particularly in Vietnam, where the green bond market remains underdeveloped needs to be deepened. Participation from local financial institutions and pension funds, which can provide stable, long-term capital for transition projects, needs to be encouraged
Mobilise multilateral support- Seek additional commitments from international partners, especially as some initial pledges (notably from the US) have not been fully realised. Additionally, engage with multilateral development banks and climate finance initiatives to access concessional loans and technical assistance

JETPs in Indonesia and Vietnam represent a promising model for accelerating climate action in coal-dependent emerging economies, but their success ultimately hinges on the ability to close significant financing gaps. The current scale of investment falls well short of what is required to achieve a just and ambitious transition, and both countries must urgently reform domestic financial ecosystems and scale up blended finance mechanisms. Strengthening green bond markets, mobilising catalytic capital, and securing unmet international commitments will be crucial. If supported with adequate, affordable, and well-structured finance, JETPs can become a blueprint for climate-resilient growth not just in Southeast Asia, but across the Global South.

Fulcrum Advisory Asia ISEAS - Yusof Ishak Institute (ISEAS) Climate Policy Initiative Climate Works Ltd

Featured events

London Climate Action Week 2025: 22nd - 29th June

Webinar - Financing a just transition in emerging markets: the role of NBFCs, financial policies and regulations, 23rd June

Emerging markets are experiencing the most severe impacts of climate change, despite contributing the least to the crisis. A just transition—one that promotes climate resilience while ensuring social equity—is essential to avoid deepening existing inequalities. Yet, financial and policy frameworks in many emerging economies remain ill-equipped to channel capital toward inclusive climate solutions. Non-Banking Financial Companies (NBFCs), with their deep regional presence and ability to serve MSMEs and vulnerable communities, are uniquely positioned to finance last-mile green and social infrastructure. However, they face significant challenges, including limited access to long-term capital, lack of alignment with international reporting standards, and exclusion from green finance policies and incentives.

Against this backdrop, auctusESG, the Joint Impact Model Foundation, and the LSE Grantham Institute’s Just Transition Finance Lab are convening this webinar as part of London Climate Action Week. The session will bring together NBFC leaders, financial regulators, DFIs, and policy experts to explore how emerging economies can overcome structural and regulatory barriers to unlock capital at scale. It will discuss actionable reforms, transition metrics, and innovative financial instruments to strengthen the role of NBFCs in delivering an inclusive and equitable climate transition.

Register here. Joint Impact Model Foundation Just Transition Finance Lab Grantham Research Institute on Climate Change & the Environment auctusESG London Climate Action Week

Webinar - De-risking through disclosure: Why EMDE corporates must prioritise transition planning: 27th June

As climate change intensifies, Emerging Markets and Developing Economies (EMDEs) face a dual challenge: accelerating low-carbon growth while attracting the capital needed to finance it. For global investors, climate risk is now central to fiduciary responsibility, but EMDEs are often perceived as high-risk investment destinations. Transition plans can bridge this gap.

This session, hosted by auctusESG and IEEFA, brings together standard setters, regulators, financial institutions, corporate leaders, and civil society experts to explore how credible transition planning can unlock climate-aligned investment in the Global South. The discussion will unpack emerging global frameworks and how EMDE corporates can practically implement them, examine evolving definitions of what makes a transition plan "credible," and explore how investors are using these plans to shape stewardship, regulation, and capital flows. It will also highlight the strategic case for EMDE corporates to act now—not just to access finance, but to build long-term competitiveness in a rapidly transitioning global economy.

Right Here, Right Now Global Climate Summit: 2–8 June 2025 at the University of Oxford

The summit included a launch event, a 24-hour global plenary on World Environment Day (June 5) featuring leading thinkers on climate justice and human rights, and a series of in-person and virtual local activities—talks, exhibitions, concerts—held at Oxford and partner universities. The event brought together scientists, policymakers, students, indigenous leaders, youth activists, academics, and civil society to explore the intertwined nature of environmental degradation and human rights, with featured sessions on climate migration, finance, stewardship, and science diplomacy.

The summit served as a strategic inflection for climate finance by foregrounding the principle that climate solutions must be rooted in human rights and equity. By reframing climate change as a fundamental rights crisis, it underscored the need for financial flows that prioritise the most vulnerable—women, children, indigenous peoples and marginalised communities—to ensure just transitions. The summit’s focus on rights-based finance offers a powerful pathway for climate donors, governments, and investors to design mechanisms—such as green bonds, concessional loans, and grants—that are both climate-effective and socially inclusive, thereby reinforcing the link between environmental action and human dignity.

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