The global path to net zero: A call for Asean+3 leadership

THE pathway to net zero is proving more complex and capital-intensive than initially anticipated. Since the adoption of the Paris Agreement in 2015, significant strides have been made to address the climate crisis. However, recent geopolitical shifts, protectionist policies and the weakening of sustainability commitments – particularly by the US – have introduced new uncertainties.

Now, more than ever, Asean+3 – the 10 members of the Association of Southeast Asian Nations, plus China, Japan and Korea – must rise to the challenge. The region’s diversity can be transformed into its greatest strength in leading the transition to a sustainable future.

Transition finance vs green finance

The road to net zero is not merely about expanding the green economy. The greater challenge lies in helping high-emission industries transition while safeguarding economic priorities. This is where transition finance plays a crucial role, bridging funding gaps and ensuring a steady shift towards sustainability.