The International Energy Agency hosted the 3rd Finance Industry Advisory Board at the Ecosperity Week in Singapore today, focused on the importance of mobilising capital to support energy transitions in the Asia-Pacific region.
The advisory board is designed to enable a more structured dialogue with the energy finance community on a range of issues affecting energy investment, in particular as they relate to clean energy transitions. This year, it was organised together with Glasgow Financial Alliance for Net Zero (GFANZ) Asia-Pacific Network and the Singapore Sustainable Finance Association (SSFA), as a FiNZ Connect Series and Ecosperity Week Partner event.
At the meeting, participants exchanged views on recent IEA analysis and workstreams dedicated to investment issues. This includes the upcoming World Energy Investment report, which tracks the flows of capital into the energy sector, and the Southeast Asia Energy Outlook, due to be released later this year. Participants were also invited to share experience on how different sources of capital and finance tools can contribute to energy transition efforts across the region.
The IEA continues to work closely with countries across the Asia-Pacific. At the Agency's 50th Anniversary Ministerial, the IEA and Singapore announced a new Regional Cooperation Centre in the country that will serve as a hub for engagements in Southeast Asia and beyond, providing policy guidance, technical assistance, training and capacity building. The centre will focus on scaling-up the deployment of renewables and other clean energy technologies, increasing cross-border power-trade, and improving access to finance for clean energy investments. It is scheduled to commence operations in the second half of 2024.
Tim Gould, Chief Economist, International Energy Agency: "Supporting clean energy transitions in the Asia-Pacific region is vital to get the world on track with its climate goals. This will require unlocking finance at scale from all sources; public, private, domestic, and international. This is why the IEA's Finance Industry Advisory Board plays an important role in convening the world of energy finance to better understand the challenges facing investors in different regions and to work together to identify solutions that can unlock the quantum of financing necessary to meet energy transition goals for countries across the region."
Ravi Menon, Chair, GFANZ Asia-Pacific Network Advisory Board, and Ambassador (Climate Action), Singapore: "The world will not reach net zero without an effective energy transition in Asia. This will require active collaboration between the financial industry and the energy sector to develop holistic solutions to mobilise the financing necessary to progressively phase out coal, expand renewable energy, and build an adequate grid infrastructure. The IEA's 3rd Finance Industry Advisory Board in Asia-Pacific is in the spirit of such collaboration. It complements the GFANZ Asia-Pacific Network's work on mainstreaming financial institution transition planning and capital mobilisation to enable the region's net-zero transition."
Gillian Tan, Assistant Managing Director (Development and International) and Chief Sustainability Officer, Monetary Authority of Singapore (MAS): "Asia's energy transition is a key pillar of the global transition to a net zero future. This will require the energy and financial sectors to map out regionally-contextualised transition pathways and mobilise financing for renewable energy, grid infrastructure, promising decarbonisation solutions and the early retirement of coal-fired power plants. MAS looks forward to deepening our partnership with the IEA through the IEA Regional Cooperation Centre in Singapore."
Kavitha Menon, Director, Singapore Sustainable Finance Association (SSFA): "Asia's transition to net zero depends on concerted action to decarbonise the region's energy mix. This requires close collaboration among governments, financial institutions, and the energy sector and mobilising capital at scale. As a newly launched cross-sectoral industry body, SSFA aims to be the convening platform to catalyse partnerships for transition finance. We look forward to working with the IEA and facilitating multi-stakeholder collaborations to support the region's energy transition."
