Overview

As the world approaches the 2030 deadline for the United Nations’ Sustainable Development Goals (SDGs), countries everywhere are under increasing pressure to bridge the funding gap necessary to meet their sustainable development targets.

Yet amid these pressing challenges, we are in unprecedented times, marked by muted expectations for economic growth, escalating geopolitical tensions, trade disruptions and high levels of debt and inflation.

Developing countries in particular face additional obstacles due to their limited fiscal space, and are vulnerable to commodity price fluctuations which threaten their SDG progress. Yet, Asia also stands out as a promising region for sustainable infrastructure projects which could help catalyse new forms of partnerships that progress the SDG targets.

The Unlocking capital for sustainability 2024 insights report captures key messages, discussion points, and recommendations for policymakers and businesses across the region to forge a more inclusive and sustainable Asia. The seventh edition of the forum attracted over 1,500 delegates across five Asian cities: Jakarta, Kuala Lumpur, Manila, Bangkok, and Singapore.

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"It is in Asia that the battle against climate change will be won or lost."

Ravi Menon
Ambassador for Climate Action and Senior Adviser to National Climate Change Secretariat, Singapore

Recommendations

For governments

To accelerate the clean energy transition

  • Liberalise domestic electricity markets and remove regulatory hurdles to give commercial and industrial users direct access to clean energy.
  • Upgrade national and cross-border grid infrastructure to accommodate the growing mix of renewable energy.

    • To mobilise private finance for decarbonisation

  • Introduce long-term market signals such as carbon taxes to drive decarbonisation efforts.
  • Make sustainability reporting mandatory and accessible, using sustainable finance taxonomies and international sustainability reporting standards.
  • Find common ground between Asean countries on carbon trading to accelerate decarbonisation.
  • Create enabling environments for sustainable finance by implementing clear regulations, pricing mechanisms, and fiscal incentives.

    • Enforce stronger penalties for non-compliance and incentivise transition

  • Enforce stronger penalties for non-compliance to drive meaningful climate action such as labour and environmental standards in global supply chains as weak enforcement can impact renewable energy deployment.
  • Reallocate fossil fuel subsidies to renewable energy and conservation efforts to accelerate the transition to a low-carbon economy.

    • Recommendations

    For businesses

    Look beyond 'sexy solutions' for low-cost, effective decarbonisation technologies

  • Funding should focus on proven, cost-effective solutions like energy efficiency rather than focusing solely on emerging technologies such as carbon capture and hydrogen. Small but meaningful wins can drive significant impact.
  • Leverage on supportive policies such as the low-carbon bill to secure cost- competitive deals. A “business-as-usual” approach is no longer viable.

    • Prioritise investments in climate adaptation and mitigation

  • Invest in climate adaptation such as resilient water and food systems and disaster preparedness.
  • Prioritise adaptation efforts as countries like Thailand and the Philippines face significant economic risks if climate financing does not flow to adaptation projects.

    • Capacity building and financial support for SMEs

  • Large corporations should assist SMEs in their ESG reporting journey.
  • MNCs and PLCs should offer financial support for SMEs to adopt disclosure guidelines and help them understand the value in ESG reporting.

    • Boards must upskill for the climate emergency

  • Directors should enhance their technical expertise in sustainability to guide a credible net zero transition, integrating sustainability into strategic discussions and decision-making while leveraging data and the right tools effectively.
  • Establish a clear net-zero transition plan and nature-positive strategy by critically assessing business decisions and strengthening long-term resilience.
  • Boards should include members with diverse backgrounds such as sustainable finance, conservation, labour rights, and regulatory affairs and establish KPIs that include ESG-related goals for senior management.

    • Transitioning Asia’s energy systems and economies to achieve net zero will require massive capital investments into new technologies and infrastructure. However, many climate projects in the region are not fully bankable and public sector funds alone are not enough to finance the green transition. Transition finance, as well as greater regulatory convergence across the region’s markets, are among key topics discussed at the Unlocking capital for sustainability 2024 forum.

    Read more here

    Eco-Business would like to extend our appreciation to all partners, speakers and participants at Unlocking capital for sustainability 2024.

    This year, Unlocking capital for sustainability will return to six cities across Asia for its eighth edition as the region's premiere sustainable finance and business forum. Find out more here.

    This report was developed and written by Siva Selan, Samantha Ho and Rhick Lars Albay with Ng Wai Mun. The full report is designed by Philip Earn Amiote.

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