ESG | GREEN FINANCE
STORS ARE ALREADY TALKING ABOUT K GREEN ’ TO DIFFERENTIATE FROM GREEN PRODUCTS THAT HAVE LABEL BUT NOT THE SUBSTANCE
Maria Ortiz EO and Head of Impact Investing , The Palladium Group
to the challenge and drastically increase the scale of their operations .”
It is one thing having the capital available , quite another to spend it wisely . The planet simply does not have a second chance if the money available is wasted first-time around .
Given the rising energy demand and its contribution to emissions in Asia , a high priority should be placed on financing the just energy transition , says Sivakumaran .
This includes solving the difficult question of how to finance the phase-out of coal ( or other fossil fuels ) in an orderly and equitable manner . Urgent funding is also required for renewable energy and energyefficiency projects .
Large-scale financing is essential for deploying new green technologies , such as green hydrogen , in hard-to-abate sectors , where commitments are many but financing is still lagging .
If the finance exists , what is stopping deployment , and therefore holding back progress on achieving the SDGs ?
“ There are insufficient policies and regulations that incentivise financing towards these goals ,” says Sivakumaran .
“ There is also an absence of bankable projects in national pipelines . Green projects , particularly those centered on adaptation , often involve high upfront costs and longer-term returns . During this interim period , financiers face a spectrum of risks related to various factors , including countrylevel risks , industry-related challenges , and macroeconomic conditions .
“ The lack of robust policy and regulatory frameworks , especially in emerging fields like renewable energy and green technologies , adds to the challenges . Governments play a pivotal role in creating environments conducive to building invest-ready pipelines .”
The UN ESCAP report highlights ten principles for action – or a guide for countries to adopt . Each country will have a unique pathway towards financing SDGs and climate action , based on a unique combination of those ten principles .
Ultimately , the report says every country in the Asia-Pacific region is at a different stage in their journey , but this report can be used as a roadmap for policymakers , regulators and private finance to bridge the sustainable finance gap .
businesschief . asia 107