Coal to clean initiative

KPMG International and KPMG in Singapore have collaborated with the World Economic Forum to establish the Coal to Clean initiative, a unique platform where stakeholders from energy, finance, and civil society can exchange best practices and forge partnerships to accelerate coal-transition projects. It focuses on unlocking financing for the retirement of coal-fired power plants in emerging economies, currently a critical challenge in advancing the global energy transition.

Coal remains a dominant source of electricity globally, accounting for over a third of total power generation and an even greater share in emerging economies¹. This heavy reliance on coal poses a significant threat to climate goals, as coal power generation is set to consume half the remaining carbon budget to achieving 1.5 degrees². The urgent need to accelerate the retirement and repurposing of coal-fired power plants, particularly in emerging markets, has created a critical challenge for the global energy transition. Financing the early closure of these plants and investing in clean alternatives are complex tasks that require innovative strategies and broad stakeholder engagement.

Recognizing this, the World Economic Forum (WEF), in collaboration with KPMG International and KPMG in Singapore, established a new platform — the Coal to Clean initiative.

This initiative convenes leaders from energy, finance, and civil society to exchange best practices, forge partnerships, and co-create strategies that aim to unlock financing and help drive impactful coal-to-clean transition projects. The focus areas include developing innovative financing mechanisms, engaging asset owners, and conducting deep dives — such as the Malaysia example discussed below — to surface policy, technology, and investment pathways for a just and effective transition.

KPMG International and KPMG in Singapore have played a pivotal role in supporting the World Economic Forum’s Coal to Clean initiative, which brings together over 200 coal power producers, financial institutions, and government stakeholders committed to accelerating the shift from coal to clean energy while maintaining energy affordability and security.

In the past year, KPMG professionals have helped develop the Coal to Clean Financing Blueprint — a practical tool for asset owners, financiers, and policymakers to evaluate options for early retirement and repurposing of coal plants. Additionally, KPMG International contributed to the launch of the WEF’s influential whitepaper, Scaling Financing for Coal Phase-out in Emerging Economies, which explores innovative strategies to enable emerging markets to transition away from coal.

Building on these achievements, this year’s priorities include engaging asset owners to overcome barriers and build compelling business cases for early retirement, co-creating strategies to accelerate coal phase-out and expand clean energy approaches globally. Through these collaborative efforts, KPMG and WEF have established a robust framework for driving transformative change in the energy sector.

A key milestone has been the Malaysia Deep Dive pilot for decarbonizing Malaysia’s power sector, which is an independent process to surface policy, technology, and financing solutions to support Malaysia’s coal-to-clean transition goals (50% coal capacity reduction by 2035, 100% by 2044) in collaboration with Ministry of Energy Transition and Water Transformation (PETRA), Government of Malaysia. The active participation of government representatives is instrumental in shaping the pilot’s outcomes and ensuring alignment with national energy transition goals. Looking ahead, the program aims to launch one or two additional pilots in other countries before its conclusion, further expanding the impact and learnings of the Coal to Clean initiative.

The extended collaboration between KPMG International, KPMG in Singapore and WEF has already begun to deliver tangible impact, particularly in Asia, where tailored transition strategies are supporting governments and energy providers. The initiative has resulted in engagement with over 100 stakeholders and generating market interest from leading institutions and policymakers towards the coal to clean transition.

The Coal to Clean initiative has fostered a growing community of corporates, governments, multilateral development banks, and philanthropies focused on accelerating the transition. New financing solutions and practical implementation tools — such as the Financing Blueprint and Whitepaper — are helping to mobilize investment and clarify pathways forward.

The Coal to Clean initiative is becoming truly transformational in its impact, with recognition at major international forums and dedicated sessions at Davos 2025 and 2026 to advance financing solutions for coal-to-clean transitions and convening high-profile workshops with asset owners, financiers, and policymakers across ASEAN region. The initiative has helped strengthen market presence through strategic engagements, including the Malaysia Deep Dive, presided over by the Deputy Prime Minister of Malaysia and attended by senior government officials and over 50 stakeholders from the region.

Future opportunities for the program as a whole include helping to scale solar growth, harnessing natural advantages like hydro and floating solar, advancing the business case for regional interconnections, and exploring the evolving role of nuclear energy. Strategic policy, investment, and collaboration will be essential to balance affordability, security, and sustainability, with the aim of enabling a just transition across all participating countries.