Conducive environments needed to fund S-E Asia's green push

Panellists say this gives investors confidence, helping unlock funding for cuts to emissions

- Cheryl Tan

The South-east Asian region needs over a trillion dollars to meet its 2030 climate change targets, but unlocking the funding needed to cut emissions would require governments to develop conducive regulatory and policy environments to give investors the confidence to take the plunge.

This was a key theme that emerged from the first day of Ecosperity Week, a sustainability conference convened by Singapore's investment company, Temasek, and held from April 15 to 17 at Marina Bay Sands.

Speaking at a panel discussion on April 15, Minister for Sustainability and the Environment Grace Fu highlighted a few key areas where policy environments could help or hinder climate action.

To promote climate action, for example, governments can provide or facilitate infrastructural support such as energy grids that can increase renewable energy deployment and implement policies that spur innovation, she said.

Pointing to Singapore's carbon tax scheme, Ms Fu said the country ploughs the carbon tax revenue "back into the system" to encourage research and development, and to push industries to adopt newer clean technologies, such as hydrogen and carbon capture projects.

As Singapore looks to import some 30 per cent of its energy from renewable sources in the region by 2035, infrastructural investments will also be needed to upgrade the electricity grid and build power lines, she added.

To fund this, the Government has set aside a future energy fund with an initial injection of $5 billion in order to support the infrastructural needs of this green energy transition, Ms Fu said.