SIEW Thinktank Roundtable: Unleashing Green Finance to Drive ASEAN's Carbon Neutrality Roadmap

by User Not Found Oct 27, 2023, 10:30 AM

Discussions on how to finance the ASEAN decarbonisation roadmap towards carbon neutrality.

In the ever-evolving landscape of energy, energy experts converged to discuss the transformative power of sustainable finance at the recent SIEW Thinktank Roundtable on "Financing ASEAN Decarbonisation Roadmap Towards Carbon Neutrality".

Hosted by the ASEAN Centre For Energy (ACE) and Energy Studies Institute @ National University of Singapore (ESI@NUS), the panel to deliberated on ways to enhance regional energy investments and financing capabilities. This is particularly important as the region is developing the ASEAN Renewable Energy Long-Term Roadmap, aimed at accelerating the deployment of renewable energy beyond 2025.

Here are the key takeaways:

Clear regulatory frameworks and sustainable finance are pivotal in shaping the future of energy.
Beni Suryadi, Manager, ASEAN Centre for Energy (ACE), highlighted the intricate nature of today's energy landscape. He underscored the remarkable economic growth that will be forthcoming in the next few decades and its impending impact on energy demand.
Associate Professor Poh Seng Lee, Executive Director, Energy Studies Institute @ National University of Singapore (ESI@NUS), emphasised the importance of having clear regulatory frameworks to define and promote green finance. He stated that this should transcend the boundaries of government policies and corporate practices.

Jonathan Goh, Director, External Relations, Energy Market Authority (EMA), highlighted the need to understand the current technology investment landscape and develop innovative financing solutions that support our energy transition, especially in Southeast Asia which is experiencing a surge in energy demand. This emphasises the urgency of greater investments in clean technologies.
The ASEAN Plan of Action for Energy Cooperation has set ambitious goals to reduce energy intensity and increase share of renewables.
Dr Kim Jeong Won, Senior Research Fellow, ESI@NUS, outlined the ASEAN Plan of Action for Energy Cooperation (APAEC). She underlined two key goals for 2025:
- Reducing energy intensity by 32 percent and encouraging energy efficiency and conservation efforts, especially in transportation and industry; and
- Increasing share of renewables to 23 percent in total primary energy supply (TPES) and 35 percent in installed power capacity.
Dr Kim emphasised the imperative to attract clean energy investments in ASEAN. This focus should revolve around recognising the significance of energy investments and sustainable financing, prioritising areas for bolstering regional capabilities and formulating informative guidelines for ASEAN regulators and policymakers.
Southeast Asia is becoming a focal point for sustainable infrastructure investment, attracting attention from private investors and ODA funds.

The all-female panel, moderated by Dr Yao Lixia, Senior Research Fellow at ESI@NUS, examined financing from a policy perspective.
Speaking from a private sector standpoint, Jennifer Tay, Asia Pasific Infrastructure Leader, PwC Singapore, noted a shift in sustainable infrastructure investments towards Organisation for Economic Co-operation and Development (OECD) countries. However, increasing attention is being directed to Southeast Asian countries, including Indonesia, the Philippines, Vietnam, and Thailand.

Ms Tay emphasised the pivotal role of Official Development Assistance (ODA) funds in attracting private investments not only for renewable energy projects, but especially for grid infrastructure—a currently underserved area. This is crucial for mitigating project risks and enhancing energy distribution.

Architrandi Priambodo, Senior Energy Specialist, Asian Development Bank (ADB), discussed the importance of carbon pricing mechanisms, encompassing carbon taxes, carbon cap and trade systems, and carbon crediting mechanisms, within a broader climate policy framework. She highlighted the role of carbon pricing in driving emissions reduction in a cost-efficient manner.

Ms Priambodo underscored the significant impact of carbon pricing instruments on the energy system, directing substantial funds towards energy policy initiatives. A long-term, predictable, and transparent carbon pricing policy can encourage investments in valuable, low carbon assets, including power plants, grid infrastructure, and energy-intensive industrial facilities.
Public finance, linked to technology projects in nascent stages, plays a significant role in spurring technological growth.

In this segment, moderator Aldilla Noor Rakhiemah, Senior Research Analyst, ACE, led the panel in sharing insights into financing from a technology perspective.
Xiang Long Koh, Director, Head of Corporate Finance, EDP Renewables APAC, emphasised the importance of public finance in supporting technology projects in their early stages. He added that such fundings play a significant role in driving technological advancements.

King Lee, Head of Policy and Industry Engagement, World Nuclear Association, highlighted growing interest in small nuclear power reactors, thanks to their cost-effectiveness and shorter construction times.

Lawrence Chen, Managing Director, Asia – Pacific Huawei Sales Financing, Huawei International, spoke about the concept of "digital energy". He discussed how information and communications technologies (ICT) companies, such as Huawei, aim to "use bits to support watts", leveraging digital solutions and data-driven insights to optimise energy-related processes.