South-east Asia must boost financing for climate adaptation

A GROUNDSWELL of interest in creating a “just transition” to a net-zero carbon future for South-east Asia offers an opportunity for policymakers, businesses and investors to direct resources towards neglected adaptation solutions for the region.

Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong recently highlighted the need for transition finance and transition activities at the Philanthropy Asia Summit last week. His comments added to a growing chorus of voices calling for resources to help South-east Asia get to net zero, and reflect what is expected to be an area of focus in November as global leaders reconvene for annual climate negotiations at the 27th Conference of the Parties of the United Nations Framework Convention on Climate Change.

The sustainable finance market is increasingly impactful in South-east Asia, with issuance of labelled sustainable bonds in South-east Asia growing 77 per cent in 2021 to US$24 billion, according to data from the Climate Bonds Initiative. The negotiations and initiatives surrounding transition in the weeks and months ahead will potentially set waypoints that will help to guide the regional market for years to come.