Victor Ong

The Coal Transition Commission’s report is an important read for anyone who thinks about energy transition. Yi Jun Mock summarises the issues well in the post below. The analytical work being undertaken by the TRACTION coalition, convened by the Monetary Authority of Singapore (MAS), will shed light on how a viable and credible market in transition credits can be developed. We look forward to sharing updates on this work at Finance Day at COP29 Azerbaijan tomorrow. Read the CTC report here: https://lnkd.in/gBy3swv6 Pamela Lee Shi Min Tan Si Yun Neo Yuanjie Soh Filisa Ngoh

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There have been important developments for impact and sustainable investing in Japan over the last week.   The Japanese government (Cabinet Office) released their "Grand Design and Action Plan for New Capitalism 2024 Revised Draft" (in Japanese only) on Friday where they clarify for “key public asset owners” that they are allowed to consider non-financial factors, including impact, in their investing. This essentially opens the way for GPIF and other public pensions funds to make impact investments, which would send an important signal to the market. On my visits to Japan in recent months to meet with Japanese institutions, the Financial Services Agency, and others, there is a very visible enthusiasm around impact finance (which includes banking). Many are watching to see if pensions and other institutional asset owners will step into the market strongly. The Cabinet Office also says that GPIF and FMAA and others will consider undertaking initiatives/engagements connected to this clarification.   GIIN has been building its activity in Japan which has taken me to Tokyo a few times over the last several months to meet with financial institutions, the FSA, and others seeking to develop impact investing. It has been a fascinating experience, including seeing a presentation from a bank on how they applied impact investing principles in the context of banking/commercial loans. Very curious to see the effect of this guidance in coming months. #japan #fiduciary #impactinvesting

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Hopefully this will encourage increased appetite for debt instruments that focus on sustainable features in other SEA countries. 🙌 Both green and social bonds support the broad themes of ESG, capturing a range of goals that consider enterprise beyond conventional financial considerations. ✅Green bonds support capital-raising for new and existing specialist projects with environmental considerations and social bonds raise funds for projects with demonstrable social outcomes. 🏆Sustainability bonds are golden as they bring together both green and social purpose. 🔏The importance of Sustainable Finance Debt for Insurers is growing also. Green bonds being the favoured SF debt instrument with less of an appetite for Social Bonds. 🙏🏻Given the insurable interest that lies within both green and social bonds issuance hopefully the momentum within the insurance industry to increase portfolio allocations to bonds with specialist climate / social focused funds will increase. ✍🏼Benefits go beyond CSR as it presents an opportunity for new risk transfer products for trade credit insurers given insurance plays an important role in mobilising investment to financing at scale. Risk transfer in this regard is particularly important for large-scale projects such as infra development. FI risk transfer products can help support Bond issuance for the project pipelines of other Development Finance Institutions, for example for the IFC, ADB and AIIB. 👷🏾‍♀️Additional scope for insurers to provide risk management support for critical infrastructure projects critical in developing countries where there is still a huge investment gap impeding the full potential for clean tech deployment. 💡A pragmatic win win given the extent of insurer and investor involvement in the commercial operations of clean tech projects in emerging economies and given such are at the mercy of the infra developments the ADB and other DFI’s are promoting bond financing for.

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Singapore’s AUM rebounds 10% in Spite of Geopolitical Tensions The Monetary Authority of Singapore (MAS) annual update of the Singapore asset management industry just released report Singapore’s Assets Under Management grew by a healthy 10% in 2023 in spite of geopolitical tensions and conflicts, market uncertainties and supply chain disruptions. MAS projects on the back of growth in assets classes such as private equity, venture capital and private credit, AUM growth in 2024 will likely remain resilient, even as geopolitical contestations and a challenging business environment remain. Great to be a part of MAS' ecosystem as Senior Advisor to the Global Private Capital Association working with Ivan Ng (黄思强) Kenny Quek Fumin Feng Pui Ee Lai Rene Pei Yie Tan Elean Chin with my GPCA colleagues including Cate Ambrose Felicia Chia Jeff Schlapinski Senna Bayasgalan JiaXin Ong and Asia Council Chair Brian Lim Full report here: https://lnkd.in/gAbBASGd

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Another angle to China’s stimulus is the gradual relaxation of the household registration system, which links access to social services and benefits, such as education, health care and social security. According to China’s estimates, each percentage point increase in the urbanisation rate could drive over CNY200 billion in additional household consumption annually. Colleagues Lan Wang, CFA and Sherry ZHAO, CFA, FRM have taken a deep-dive look at where migrations are occurring, and the implications for local economies. Free-to-air summary at https://lnkd.in/eQ9UsP_V; full report for subscribers at https://lnkd.in/evus-q_g. #fitchoncredit #china #demographics #chinastimulus #markets #investing #emergingmarkets

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Thank you CNBC International and Emily Chan Tan for featuring me on the Capital connections yesterday, right at the moment of the crucial rate hike decision by the BoJ. # Hawkish BoJ leads to a reversal in net short position in the Yen, but this is unlikely to last long. # In the near term, US data holds the key for the Yen. # In the medium term, a stronger Yen requires either strong economic growth resumption in Japan, a much weaker relative growth outlook in the US , or an extremely dovish Fed; none of which we expect. # The carry trade is taking a breather but not over—rate differentials between the US and Japan remain meaningful, and there's a lack of alternatives for currency traders (Yen implied yield will be 90bps lower compared to the Swiss Franc). # For the Japanese economy, resumption in consumption is key for growth, inflation, and currency.

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A great milestone for Pentagreen Capital - the sustainable infrastructure debt financing platform we established with Temasek launched in 2022- which will manage $1Bn on behalf of the Green Investments Partnership 🌏 Green Investments Partnership (GIP) - born from a proposal at #COP28 by Monetary Authority of Singapore (MAS), IFC - International Finance Corporation and others - is an innovative example of public and private sector coming together to fill a financing gap for sustainable infrastructure in South East Asia. HSBC is proud to be playing its role in this collaboration https://lnkd.in/esY5vRat

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🌏 Our most recent article, "Advancing Sustainable Finance in Thailand: Insights from the ZERO13 Roundtable" 🌱 A few months ago ZERO13 hosted a roundtable in Thailand, in collaboration with Charoen Pokphand Group Co.,Ltd., Energy Absolute PCL (EA), and the KliK Foundation. The discussions centred on Thailand’s renewable energy potential, carbon credit markets, digital solutions, and the broader global challenge of addressing climate change. 💡 In our latest article, we explore how digital innovations, international collaboration, and sustainable strategies discussed at the roundtable can transform Thailand into a global sustainability leader. ZERO13 is doubling down on its commitment to advancing renewable energy and transparent carbon markets. 📖 Read the full article here: https://lnkd.in/eydWRHsR #SustainableFinance #ClimateAction #CarbonMarkets #RenewableEnergy #DigitalTransformation #ZERO13 #SustainabilityInnovation #ClimateFinance #CarbonCredits Lincoln T.

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Singaporean sovereign wealth fund #GIC will plow an additional $150 million into Asia Healthcare Holdings (AHH) in a round that will make the former the biggest investor in the Bengaluru-based healthcare firm.

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Singapore pledged up to US$500 million to finance climate action in Asia, in the form of concessional capital, such as grants and loans provided at more favourable terms and below market rates.  This initiative is Financing Asia’s Transition Partnership (FAST-P), and aims to raise up to US$5 billion to finance green projects in Asia and reduce their risk.  It sounds good, but I am very sceptical.  The intent, here, is that the US$500 million will match, dollar for dollar, concessional capital from other partners, including governments, multilateral development banks, and philanthropic institutions.  The combined pool of concessional capital will be used to attract up to US$4 billion of commercial capital to support transition projects in Asia.  This is massively ambitious, and a touch naïve. Projects that can be financed under FAST-P include the early phase-out of coal power plants, upgrading electricity grid infrastructure, and industrial decarbonisation efforts.  FAST-P was launched by the Monetary Authority of Singapore (MAS) at COP28 in Dubai, and was updated at COP29 in Baku.  Despite the pledge, the actual need for climate finance in developing countries is estimated to be much higher, with some estimates suggesting a need for US$1.3 trillion per year.  Green technologies and projects come with higher costs compared to fossil-fuel-based alternatives.  There are inconsistent policies and regulatory frameworks across different countries, creating uncertainty for investors.  This makes it difficult to secure long-term investments in climate projects.  Different regions have varying risk perceptions, which affect investor confidence.  High-risk regions will struggle to attract the necessary capital, even with concessional funding.  Many developing countries lack the institutional capacity to ensure safeguards and manage large-scale climate projects effectively anyway.  The uncertain global political situation impacts the willingness of donors and development banks to contribute to climate finance.   While the voluntary carbon market has grown, it is problematic.  The financing is targetted in the wrong direction. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

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Grace Fu Hai Yien, Singapore’s Minister for Sustainability and the Environment, highlighted the deadlock over climate finance as a significant issue undermining the Paris Agreement.  The New Collective Quantified Goal (NCQG) aims to deliver billions of dollars of climate finance to regions that need it the most.  There is a deadlock because countries like the United States and Europe are only willing to commit to the fund if the list of contributing countries is widened to include nations like China, South Korea, and Singapore.  To be frank, they do have a point. Fu claimed that widening the donor base risks unravelling the Paris Agreement, which has clear provisions about the responsibility of developed parties in supporting developing countries in mitigation and adaptation. Singapore has set up funds to speed up decarbonisation in Southeast Asia and is willing to participate in the NCQG on a voluntary basis, but not as a formal donor.  I would think Singapore should step up, and be one.  There is still a possibility of Donald John Trump withdrawing from the Paris Agreement for a second time.  The deadlock blocks progress during COP29 climate talks, making it difficult to reach agreements on climate finance.  The inability to resolve the deadlock hinders efforts to meet global climate goals and support developing countries in their climate actions.  While Fu expressed hope that Washington will continue to be involved and provide leadership in climate finance discussions, I remain sceptical.  We have a Republican-majority government stuffed with climate change sceptics.  The rest of the world has to find another way t forge ahead. Democratising carbon trading is a powerful tool to address the deadlock over climate finance and support the Paris Agreement.  We need to establish global standards for carbon credits to ensure consistency and transparency across markets.  This makes it easier for countries to trade credits and trust the quality of the credits they purchase.  We should work on that regulatory framework, and explore ways to fold the voluntary carbon market into the compliance carbon market.  This requires encouraging participation from a wider range of countries, including developing nations, to ensure that the benefits of carbon trading are more widely distributed.  There is a divide between the Global North and the Global South.  Singapore is collaborating with more than 20 countries on carbon credits, helping to build a carbon services ecosystem.  The challenge is that this is still stuck in the voluntary market.  Singapore is pursuing cooperation under Article 6 of the Paris Agreement to enable the transfer of international mitigation outcomes, facilitating cross-border carbon trading.  This is still very preliminary. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

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“A journey of a thousand miles begins with a single step.” Lao Tzu 🤯It’s very easy to get excited about the data and modelling challenges around all things Net Zero and portfolio carbon measurement. ⚖️On the one hand, it’s simple to roll out the cliche “what gets measured gets managed”. 🙉On the other hand, the data is extremely challenging. There is huge scope for interpretation, many reporting methodologies and sources are not exactly consistent and consolidated. ✋For a large complex portfolio is the data quality high enough to agree very granular metrics and manage aggressively to these on a short-term basis? Er, no. 🧭Is it good enough to be able to get a “compass bearing” and force the asking of the right questions? Absolutely. 🌎And then over time move towards the big goal of “greening the world” and not just “greening the portfolio”. Again, absolutely. 💥This is big and important. It’s not meant to be easy. Do you want to be a good ancestor? 💹It’s also a critical investment context. Climate and related policy is driving value creation and destruction in many areas. Even if you don’t agree with the forecasts the politics and policy train has already left the station. #NetZero #CarbonAccounting #ClimateChange #InstitutionalInvestors #Pensions

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My ADB Blog published today: Addressing Asia’s #insurance #protectiongap is crucial to mitigating the region’s vulnerability to #climate and economic shocks. https://lnkd.in/gR5hf4nW #disaster #pension #healthinsurance

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The Emission Factors Registry was launched yesterday. It is aimed for businesses to use the appropriate emissions factors to convert operational data from business activities into corresponding greenhouse gas emissions. This registry contains localised emissions factors and this will help to empower Singapore based businesses to make informed decisions on how to reduce their carbon footrprint. The emission factors will be developed in phases. An initial baseload with data collected and consolidated from government agencies will be ready by the end of this year. These include emission factors related to transportation, water, general waste, and energy. Emission factors for new categories and activities will be developed and released based on industry consultations and demand. As someone is who doing corporate sustainability, I believe that this is a good move in the right direction. I remember using the old Quantis ( no longer available) tool for emissions factors that seemed very outdated. Hence, with the push for disclosures, this registry would really help in making data more accurate. #reporting #disclosures #esg #reporting

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BREAKING News The renewal of the Lao PDR-Thailand-Malaysia-Singapore (LTMS) Project, which aims to supply up to 100 MW of electricity from Laos to Singapore via Thailand and Malaysia, is currently stalled due to disagreements over transmission terms. Background The Lao PDR-Thailand-Malaysia-Singapore (LTMS) Project to supply up to 100 megawatts (MW) of electricity from Laos via Thailand and neighbouring Malaysia was signed in 2022 The deal expired on June 22, 2024. - Keppel Ltd and Electricite du Laos signed a renewal on June 2024. - Singapore has yet to sign deals with Thailand and Malaysia due to disagreements over the quantity of power to be purchased. What's next? Singapore, Malaysia and Thailand have until Dec. 31 to sign transmission agreements. Many naysayers said that the Asean power grid will not come to fruition but I was always optimistic. This project came along and I thought that this iconic project would definitely be something that pushes the needle in the right direction as it involves 4 different countries in its transmission path. But now, it is highly uncertain of what will actually transpire. Profits, cost and minimum quantities of energy need to be declared and agreed upon for this to be successful. There needs a win for all to make this alliance work #renewableenergy

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Just a few days ago during the awards dinner held by UN Global Compact Network Singapore, a new Singapore Emissions Factor Registry (SEFR) was introduced by the Singapore Business Federation. What Is the Carbon Registry? The Singapore Emissions Factor Registry (SEFR) is like a toolbox for companies, providing access to over 200 emission factors across 8 different sectors such as transportation, water usage, waste management, and more. These emission factors act like calculators, showing how much carbon dioxide (CO2) is emitted by different activities. Why Is This Important for Companies? In the past, businesses had to rely on international databases to estimate their emissions. However, global averages often don't capture the unique characteristics of Singapore, from our energy mix to how we handle waste. The new registry changes this by giving companies access to precise, local data, allowing them to report emissions that truly reflect their operations here. A Local Example: Managing Waste Let’s say you’re running a business in Singapore that generates a lot of general waste. Previously, you might have used a global emissions factor, estimating that every tonne of waste emits a certain amount of CO2. But now, the new registry provides a local emission factor based on how waste is processed here—mainly through waste-to-energy incineration, which has a different carbon output compared to landfills used in other countries. What Are the Benefits? Accuracy = Savings: With more precise data, companies can avoid overestimating their emissions, which can save money on carbon taxes or offsetting costs. You’re now only paying for the carbon you actually emit. Builds Trust: With detailed, local data, businesses can prove their sustainability claims, building credibility with consumers, investors, and regulators who are demanding greater transparency. Targets Areas for Improvement: Whether it’s waste, water use, or transportation, companies can identify specific areas where their carbon emissions are highest and focus on reducing them. What’s Next? New emission factors for other activities will be added from 2025, including for logistics, information and communications technology, cleaning and security services. While the carbon registry is an important step forward, it’s just the beginning. Now that businesses have accurate, local data, the next challenge is actually reducing those emissions. Tracking is important, but decarbonization is the ultimate goal. The carbon registry is a powerful new tool, but now the real question is: How will businesses—and maybe even individuals—use it to drive real change? #sustainability #emissionfactors My name is Hemesh Nandwani and I write about sustainability topics that matter; matter to me, to you and everybody around you

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Sharing my suggestions for exploring Islamic finance instruments for flood adaptation: https://lnkd.in/gX4xbm3e Among the instruments that can be considered are sustainability financing, catastrophe sukuk, and microtakaful.

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How can South Asia accelerate clean energy transition and what role can the regional institutions play to enable and accelerate it? We talk about these issues and the journey to sustainable marine transport and shipping in conversation with Atalia Chua of Maritime Fairtrade South Asia is home to over 2 billion people. It is one of the fastest growing regions with GDP expected to grow by 6.5% in 2025, and beyond. Energy demand is expected to quadruple over the next two decades or so given the growth and the relatively low per capita consumption. South Asia will need to invest over $1 trillion over the next decade or so in clean energy infrastructure. The region is rich in renewable sources and the price of electricity from these sources has reduced significantly. Furthermore, there is a significant diversity of resources. For example, Bhutan and Nepal have a lot of hydropower potential, while India and Sri Lanka are rich in solar and wind resources. Therefore, regional energy co-operation has been on the agenda for a long time. Glad to note that the first transaction between Bangladesh and Nepal was closed this week! There has been gradual progress but a lot more is possible. Countries in the region need to focus on building trust and confidence by engaging in a dialogue at the highest level. We noted this in the past in the Financial Express (link in the comments) and reiterate here because building trust will enable building blocks for genuine regional energy co-operation, i.e., common standards, regulations, and markets, as enablers of shared prosperity, energy security and climate mitigation. We were reminded of the below couplet: बहुत कुछ काम हम सब कर चुके हैं दिलों में घर बनाना रह गया है - सय्यद रियाज़ रहीम #India #Bhutan #Bangladesh #Nepal #Maldives #SriLanka #BIMSTEC #ASEAN #SAARC International Maritime Organization The BIMSTEC Secretariat South Asian University SAARC Energy Centre Ministry of Ports , Shipping and Waterways (India) C.E.A. Ministry of Power Ministry of New and Renewable Energy (MNRE) Observer Research Foundation National Maritime Foundation- NMF Maritime Research Center South Asia Forum for Energy Efficiency ASEAN Centre for Energy The ASEAN Secretariat Asian Development Bank (ADB) New Development Bank (NDB) The World Bank Group #energyefficiency #renewable #solar #wind #innovation #strategy #shipping #trust #finance #technology #greenshipping #cleanvehicles #development #cleanenergy #creativity #Asia #management #economics #education #markets #green #startups #transmission #digitalmarketing #futurism #cleanfuel #education #maritime #international #cooperation #entrepreneurship #motivation #venturecapital #student #trade #standards #sustainability #law #regulation #SAFIR

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More Sustainable Finance Taxonomies Cater to Transition and Local Economies

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