Collaboration and alignment are crucial to foster long-term development and combat divisive international politics

Collaboration and alignment are crucial to foster long-term development and combat divisive international politics

In a significant move towards a greener future, ASEAN member states are making strides in sustainable finance and renewable energy, addressing geopolitical divisions, and working towards the 2030 Sustainable Development Goals (SDGs).

The "Unlocking Capital for Sustainability" conference, held in Kuala Lumpur and Singapore on July 28, emphasized the importance of international cooperation in funding infrastructure for renewable energy. The event provided a platform for assessing progress in navigating a shifting global landscape, with a focus on fostering inclusive and sustainable growth for ASEAN.

Dato' Sri Haji Fadillah bin Haji Yusof, Deputy Prime Minister of Malaysia, graced the conference as the guest-of-honour, while the United Nations (UN) and United Nations Environment Programme (UNEP) were also involved.

One of the key topics discussed was the need for coordination and collaboration between Asean member states to meet the 2030 SDGs deadline. ASEAN is encouraged to set aside differences and seek common ground amid ongoing geo-economic and geopolitical risks. Experts emphasize ASEAN's need to preserve unity and centrality by focusing on cooperation in emerging industries despite external strategic competition and tariff challenges.

Regarding the achievement of the 2030 SDGs, Southeast Asian governments are raising ambitions on climate and energy transitions, although challenges remain due to fossil fuel subsidies, political resistance, and financing gaps. Countries like Indonesia have called attention to the shortcomings of international climate pacts. Nevertheless, more ambitious climate targets and energy transitions are being pursued as a response to the risk of falling behind globally.

On funding net-zero targets through sustainable finance and green energy, ASEAN countries are increasingly turning to innovative financial instruments and regional collaborations. A landmark example is Vietnam’s issuance of its first blue bonds and green bonds by a private commercial bank, supported by substantial funding from the International Finance Corporation and the Asian Infrastructure Investment Bank. This financing package aims to boost sustainable economic activities tied to oceans and water, green buildings, renewable energy, and energy efficiency, also encouraging financial inclusion for SMEs and women-owned enterprises.

Malaysia is leading efforts to launch the ASEAN Common Carbon Framework, a unified, transparent, and efficient carbon market for the region. The framework is expected to play a crucial role in funding net-zero targets and projected energy demand increases by 2040.

Moreover, sustainable finance efforts are coordinated via participation in regional and international initiatives, such as the ASEAN Working Committee on Capital Market Development and ASEAN Capital Markets Forum, the Climate Bonds Initiative partnership, the APAC ESG Working Group, and various Sustainable Finance Steering Committees and Working Groups.

While Western donor aid is declining, China, Japan, and South Korea are filling the financing gap with significant investments in clean energy projects, albeit with concerns about debt sustainability and reliance on transitional fuels and hydropower.

In summary, ASEAN member states are balancing geopolitical complexities by promoting unity and diversifying partnerships; they are progressively scaling up SDG and climate ambitions; and they are innovating in sustainable finance through bond issuances and regional cooperation, supported by shifting development finance patterns from western to Asian donors focused on green and transitional energy.

Furthermore, ASEAN is in the process of developing a Mitigation, Adaptation, Resilience, and Sustainable Finance (MARS) Framework to enhance the usability and functionality of the ASEAN Taxonomy for Sustainable Finance. The MARS Framework aims to provide a comprehensive guide for sustainable finance projects and investments within the region.

With these initiatives and collaborations, ASEAN is demonstrating its commitment to a greener and more sustainable future, paving the way for a more resilient and prosperous Southeast Asia.

1. In the journey towards a renewable energy future, ASEAN member states are actively engaging in sustainable finance.
2. The conference "Unlocking Capital for Sustainability" highlighted the need for global cooperation in funding infrastructure for clean energy.
3. The event emphasized fostering inclusive and sustainable growth for ASEAN, focusing on navigating a shifting global landscape.
4. Dato' Sri Haji Fadillah bin Haji Yusof, Deputy Prime Minister of Malaysia, attended the conference as the guest-of-honour.
5. The United Nations and United Nations Environment Programme were also involved in the conference.
6. Coordination and collaboration among ASEAN member states are crucial to meet the 2030 SDGs deadline.
7. ASEAN is encouraged to focus on cooperation in emerging industries despite external strategic competition and tariff challenges.
8. Climate and energy transitions are being pursued more ambitiously as a response to the risk of falling behind globally.
9. Challenges remain in achieving the 2030 SDGs due to fossil fuel subsidies, political resistance, and financing gaps.
10. Indonesia has called attention to the shortcomings of international climate pacts.
11. ASEAN countries are turning to innovative financial instruments and regional collaborations to fund net-zero targets through sustainable finance.
12. Malaysia is leading efforts to launch the ASEAN Common Carbon Framework, a unified carbon market for the region.
13. The framework is expected to fund net-zero targets and projected energy demand increases by 2040.
14. ASEAN's sustainable finance efforts are coordinated via participation in regional and international initiatives.
15. China, Japan, and South Korea are filling the financing gap with significant investments in clean energy projects.
16. Western donor aid is declining, but Asia is focusing on green and transitional energy.
17. ASEAN is developing a Mitigation, Adaptation, Resilience, and Sustainable Finance (MARS) Framework.
18. The MARS Framework aims to provide a comprehensive guide for sustainable finance projects and investments within the region.
19. ASEAN is demonstrating its commitment to a greener and more sustainable future, paving the way for a more resilient and prosperous Southeast Asia.
20. In line with the 2030 SDGs, ASEAN is addressing climate change with efforts in clean energy and climate adaptation.
21. Sustainability is not just about energy transition; it extends to lifestyle choices, such as food-and-drink, cooking, and home-and-garden.
22. Personal decisions regarding sustainable living can contribute to biodiversity preservation.
23. Green choices in finance can lead to personal-finance growth and investments in renewable energy.
24. Businesses are embracing corporate responsibility, integrating sustainable practices in their operations and supply chains.
25. In the face of climate change, understanding data-and-cloud-computing technologies can support efficient use of energy and resource management.
26. Healthy-cooking techniques can minimize carbon footprint while providing nutritious meals.
27. Travel options such as adventure-travel, cultural-travel, and budget-travel can be more sustainable, reducing carbon emissions and supporting local economies.
28. Electronic vehicles (cars) are becoming popular choices for energy-efficient transportation, promoting clean energy and reducing carbon emissions.

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