SINGAPORE and its Asean neighbours are seeking to dramatically scale up investment in green infrastructure to achieve their ambitious climate commitments. The focus has shifted from setting sustainability targets to funding decarbonisation in real economy sectors, such as energy, transportation and real estate.

KPMG projects that decarbonisation will be a key pillar of the economy, contributing up to 7 per cent of Singapore’s gross domestic product (GDP) by 2050. In Asean, new low-carbon activities could open up to US$10 trillion in investment opportunities over the same period. That comprises US$5 trillion in the renewable energy and power infrastructure sectors, US$4 trillion in energy efficiency and US$1 trillion in fossil fuel power plant retirement.

The green transition represents both a challenge and an opportunity. While the pace of energy transition from fossil fuels to low carbon and green solutions will depend on technological innovation and policy frameworks, an initiative to facilitate blended finance availability can go a long way in catalysing the transition. An orderly and just transition will be critical, and this requires the involvement of all relevant stakeholders – financiers, regulators, utility players, customers and employees.