Climate investments into EMDCs remain insufficient to meet the goals of the Paris Agreement. The world needs purpose-driven leadership with strong and committed engagement of all stakeholders – governments, private sectors, multilateral development banks and development finance institutions, philanthropy, to co-create a pipeline of investment opportunities and deploy innovative and scalable financing structures, to scale decarbonisation in Asia. The keynote speech will highlight the impetus for a longer-term ecosystem approach for climate action, and highlight Singapore’s efforts in supporting the global effort.

The planet is facing a “polycrisis” of interconnected and complex challenges, with heightened trade fragmentation, diverging ideologies, and conflict, among other factors, putting global cooperation on climate issues at risk. While we have seen progress on cooperative arrangements in climate change, more can be done to plug financing gaps as global emissions continue to rise.

The keynote panel will highlight how governments, businesses and financial institutions can reimagine their roles in enabling climate transition and explore how innovative cooperative arrangements are helping to bridge financing gaps in energy transition projects in Asia and beyond.

Despite its potential to significantly reduce emissions in Asia, the early phase-out of coal-fired power plants (CFPPs) is challenging and actual examples of such transactions in the region are few. The large and young fleet of CFPPs in Asia means that additional financing mechanisms are needed to improve the economic viability and scale such transactions. 

High-integrity transition credits, generated from the emissions reduced through retiring a CFPP early and its replacement with clean energy sources, is one such financing mechanism that can be explored. This solution showcase spotlights two transition credits pilots, namely (i) South Luzon Thermal Energy Corporation coal plant in Philippines, and (ii) a coal plant in Mindanao, Philippines. It will feature the progress as well as the practical experiences of piloting the use of transition credits.

The transition will require considerable capital investment, and under BlackRock Investment Institute’s Transition Scenario, systemwide capital expenditures is expected to double to over $4T/yr by the mid-2030s. These expenses are expected to shift from higher- to lower-carbon industries over time, but in the near term, higher-carbon incumbents will need upfront financing to pivot their businesses towards low-carbon products or production practices, or to gear up for rising operating costs as climate factors get priced in due to technology or policy-induced shifts. Emerging low-carbon solutions will also need private capital to commercialise and scale.

How can investors approach the transition across the capital stack –  across listed and unlisted equities and debt This session will travel through the exciting range of transition opportunities, pressing into the latest developments within each unique asset class.

When financing the transition to net zero, a pivotal question stands - are people sufficiently considered amidst this transformative journey? The program segment unravels the complexities surrounding climate transition, delving into geographical and socio-economical considerations that either prioritise or marginalise people. Navigating this conundrum, the fireside chat seeks to illuminate the challenges and opportunities in crafting financial solutions that not only mitigate environmental impact but also prioritise inclusivity and social equity.

Private markets play a disproportionate role in financing Asia’s decarbonisation as the transition requires massive capex financing, with the spending gap expected to be $1.4tr this decade. The transition requires us to mesh the unique financing needs of corporates in the physical world with investors looking for returns to fit their portfolio needs.

The infrastructure sector in Asia is in a pivotal phase of growth and secular change, presenting attractive opportunities to deploy capital and yet the funding gap exists. What does successful deployment look like and how do we think about enabling the transition at scale in SEA while being attuned to the unique financing needs across each country? What more needs to be done to build the right ecosystem to enable aptly-priced and efficient flow of capital to transition infrastructure in Asia?

The effects of the climate crisis are no longer merely a concern for tomorrow, but an existential threat to livelihoods today. 2023 saw nearly 400 notable natural disasters across the globe, amounting to US$380 billion in economic losses. Yet, the global adaptation finance gap is estimated to be US$194-366 billion per year. This lack of adequate public and private adaptation and resilience investments exacerbates the potential impact of rising physical climate risks particularly in developing markets including in Asia.

While investing in climate adaptation has often been seen as a public funding issue, the lack of participation from the private sector often stems from a misunderstanding of the potential returns and opportunities in adaptation and resilience projects. Studies have shown that the benefit-to-cost ratios could range from 2:1 to upwards of 10:1.

This panel will expand on the business case for financing adaptation, highlight where these investment opportunities lie, and discuss how private finance for climate adaptation projects can be catalysed and scaled.