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Climate action has accelerated since the Paris Agreement, with fresh ambition from countries and corporates generating new technology ideas, market mechanisms and frameworks for decarbonisation. However, recent geopolitical shifts, insufficient outcomes at COP29 and recalibration of corporate ambitions, have caused bumps and concerns for the climate action trajectory. Meanwhile, the physical risks of climate change continue to persist, with climate-amplified weather disasters bearing down increasingly on communities and destroying lives and livelihoods.
On the 21 February, Ecosperity Conversations convened a session, co-curated with PwC Singapore, entitled Reflections of our recent past and charting the road to Belém. The session examined recent developments, the challenges ahead, and strategies for public and private stakeholders to stay on course towards a sustainable future.
During the engaging and candid fireside chat featuring Ravi Menon, Singapore’s Ambassador for Climate Action, and Dilhan Pillay Sandrasegara, Executive Director & CEO, Temasek, moderated by Eu-Lin Fang, Partner and Sustainability and Climate Change Leader, PwC Singapore, the speakers called for a paradigm shift in thinking about climate leadership. Instead of having a single country to lead, leadership on climate action can be exercised in multiple ways, including through public-private partnerships and ground-up movements and the "coalition" of willing.
While the session was closed door, here are a summary of key themes and few highlights from the discussion:
There are inherent tensions in balancing short-term economic/business needs with long-term climate goals. It is crucial for businesses and countries to consider the importance of transition planning given the existential nature of climate change, for the long term, and to use it as a strategic tool.
In developing markets, energy transition is primarily correlated with affordability. While many mature renewable energy sources now cost lower than incumbent fossil fuel sources, costs of development of grid infrastructure and other emerging technologies such as carbon capture, utilisation, and storage (CCUS) solutions still remain high.
As such, pragmatic approaches are required for the energy transition especially in developing economies. These are crucial for pathing out the phase out the use of fossil fuels.
In Southeast Asia, cost of transitioning is high, and climate financing remains key to the region’s decarbonisation journey. Key instruments include carbon markets and blended finance.
There have been a lot more blended finance initiatives since COP28, but blending various types of financing is not as easy as it seems. Many blended finance initatives are still programme-based, with lots of customisation required to cater to differing risk/return expectations across the capital stake. There is a need to find ways to scale blended finance.
Carbon markets can play an important role in bridging the financing gap in Asia, such as through the generation of credits through decarbonisation projects in Asia. There is a need to build a strong coalition to support the use of carbon credits and move beyond concerns of backlash from various stakeholders.
Other pragmatic near-term transition solutions include the use of LNG and nuclear energy.
Impact of climate change can already be felt, but inaction could result in irreversible change.
Degradation of nature leads to urgency for climate adaptation and resilience, and it has led to concerns on food and water security, and also the issue of climate refugees. These can further exacerbate geopolitical tensions.
It is important for better risk assessments and increased collaboration with the scientific community to understand the impact of climate change, and to better address these costly challenges.
Climate adaptation could be challenging without clear revenue streams to justify private capital participation and mitigation. However, climate adaptation is a good area for philanthropic capital to be deployed given immediate and human impact it can address.
There is a need for a paradigm shift in thinking about climate leadership. Instead of a having a single country to lead, leadership on climate action can be exercised in multiple ways, whether through public-private partnerships, small groups, or even ground up movements.
Leadership that is organic and of a dispersed nature could in fact potentially drive more effective action, where countries or companies collaborate and drive climate action in ways that are suitable for them.
This article was written based on the presentations and discussions at an Ecosperity Conversations session “Reflections of our recent past and charting the road to Belém” on 21 Feb 2025.
For Ambassador Ravi Menon’s full speech please read here.
