“With Asia needing up to US$5 trillion annually to achieve net-zero emissions, Singapore emerges as a key hub for sustainable investment and innovative climate solutions.”
SINGAPORE: Asia faces an urgent need to accelerate climate financing to meet its net-zero emissions targets, especially as the region accounts for more than 50 percent of global emissions, said Jackie Surtani, Regional Director for Singapore at the Asian Development Bank (ADB).
Speaking on CNA’s Asia First on Wednesday (Aug 16), Mr. Surtani highlighted a staggering global financing gap of US$5 trillion annually, calling for a combined effort from the public and private sectors to close the divide.
Singapore’s Role in Climate Financing
Having spent two months in Singapore, Mr. Surtani emphasized the city-state’s critical role as a regional hub for sustainable investments.
“Singapore is the ecosystem for Asia,” he said, citing its position as a headquarters for commercial banks, multilateral organizations, and energy companies. He lauded the collaborative efforts of Singapore’s Ministry of Finance and the Monetary Authority of Singapore (MAS) in addressing climate financing challenges.
He pointed out that 90 percent of the world’s coal-fired power plants with a lifespan exceeding 20 years are located in Asia. “This is an issue that not only Singapore but the entire Southeast Asian region must address together,” he added.
Attracting Private Sector Investment
To encourage private sector involvement in large-scale green energy projects, Mr. Surtani stressed the need for robust regulation and attractive investment returns.
“The issue isn’t just about capital but creating bankable deals,” he explained. “Strong regulatory environments and consistent policies are essential to encourage private sector participation.”
Mr. Surtani cited Vietnam as an example of transformative progress, where the ADB facilitated six private-sector renewable energy projects, spurring commercial interest in the sector. “Three years ago, Vietnam had minimal renewable energy. Today, it’s seen as a strong market for green investment,” he noted.
Challenges and Opportunities
While acknowledging the risks of accumulating public debt in climate financing, Mr. Surtani expressed optimism about equity investments in Asia.
“Asia offers growth potential, and investors are attracted by stable returns,” he said. He also pointed out Singapore’s advantageous position, with many private equity firms headquartered here actively seeking investment opportunities.
Despite competition from other global regions, Mr. Surtani believes Asia remains a compelling destination for sustainable investment. “It’s about creating the right environment to showcase Asia’s growth potential and make it an attractive place for capital deployment,” he concluded.
