S-E Asia climate investment opportunities still sound, but speed bumps abound

THE risks and opportunities for financial institutions and companies remain intact in the wake of the Paris climate pact’s first progress report as South-east Asia’s ability to raise its climate ambitions remains uncertain, analysts told The Business Times.

Legacy issues, bureaucratic red tape and poor access to climate financing from both public and private sectors are among the chief obstacles that could hinder stronger mitigation of global warming in the region, the analysts said.

Charlie Knaggs, regional decarbonisation partner at sustainability consultancy ERM, said the outlook for companies related to energy transition would depend more on the maturity of their technology. For example, investors are more confident with renewable energy solutions such as wind and solar than with hydrogen, which has yet to achieve meaningful scale.