CELIOS publishes a Legal Opinion on Legal Risk Mitigation for the Energy Transition Program to End Coal Operations as a basis for advocacy and discussion with stakeholders to accelerate the lawful and just closure of coal-fired power plants (CFPPs). The document examines legal challenges in ending CFPP operations, including potential financial claims and the risk of criminalizing energy transition policies. The study focuses on four key questions: the definition of corruption involving state financial losses, potential business and financial risks from the early retirement of coal-fired power plants, measures to mitigate legal risks, and why the financial consequences of shutting down CFPPs do not constitute corruption.
Through this analysis, CELIOS underscores that accelerating the early retirement of CFPPs is a legitimate public policy, backed by strong legal foundations such as Presidential Regulation No. 112/2022, Ministry of Finance Regulation No. 5/2025, and Prosecutor’s Guideline No. 5/2023. The resulting financial consequences cannot automatically be classified as state losses in the context of corruption, but are instead part of the policy risks that must be carefully mitigated to ensure a fair and accountable energy transition.
CELIOS has released a Legal Opinion on Mitigating Legal Risks in the Energy Transition Program as a basis for advocacy and dialogue with stakeholders to push for the lawful and just closure of coal-fired power plants (CFPPs). The document examines key legal challenges in terminating CFPP operations, including potential financial claims and the risk of criminalizing energy transition policies. The analysis is structured around four central questions: what constitutes state financial losses under anti-corruption law, whether early coal retirement poses business and financial risks, how to mitigate legal risks in CFPP closures, and why the financial consequences of early retirement should not be treated as corruption.
Through this study, CELIOS underscores that accelerating coal retirement is a legitimate public policy, backed by strong legal foundations such as Presidential Regulation No. 112/2022, Ministry of Finance Regulation No. 5/2025, and Prosecutor’s Guideline No. 5/2023. Any financial consequences arising from CFPP closures cannot be automatically classified as state losses in the context of corruption, but should instead be recognized as policy risks that must be carefully managed to ensure a fair and accountable energy transition.
Legal Risk Mitigation for the Energy Transition Program — Download