Urgent Collaboration Necessary for Sustained Progress and to Combat Dividing International Politics
The "Unlocking Capital for Sustainability" conference, held in Kuala Lumpur on 28th July, brought together high-level decision-makers to discuss and commit to actionable initiatives for sustainable development needs. The event, organised by a leading media and advisory platform dedicated to sustainable development, in partnership with the United Nations Environmental Programme Finance Initiative (UNEP FI), had a global focus, with specific regions including Malaysia, Singapore, and Southeast Asia.
The conference was associated with the United Nations (UN), United Nations Environmental Programme (UNEP), and a multilateral development bank. It aimed to mobilise these decision-makers to unlock finance for pressing sustainable development needs, particularly in the context of global headwinds that threaten to divert necessary investments away from low carbon and clean energy transitions.
Malaysia is spearheading efforts to launch the ASEAN Common Carbon Framework, a unified, transparent, and efficient carbon market for the region. The framework is crucial in the fight against climate change and in meeting the region's net-zero targets. The ASEAN is also developing a Mitigation, Adaptation, Resilience and Sustainable Finance (MARS) Framework to enhance the usability and functionality of the ASEAN Taxonomy for Sustainable Finance.
The conference covered critical issues such as geopolitics, transition finance, artificial intelligence, energy transition, and climate adaptation and resilience. It also included discussions on the evolution of sustainability reporting and the potential of carbon solutions for a net-zero economy. Breakout sessions were held on these topics, providing an opportunity for in-depth discussions and the exchange of ideas.
Southeast Asia is projected to have a US$1.5 trillion deficit to fund net-zero targets by 2040. To address this funding gap, the conference emphasised the need for Southeast Asian countries to collaborate on sustainable infrastructure, climate adaptation, and funding net-zero targets. Key collaboration approaches include regional energy integration and sustainable infrastructure investments, strengthening financial ecosystems and mobilising green finance, collaborative climate adaptation and resilience building, aligning policies and market mechanisms, technical cooperation and knowledge exchange, and leveraging digitalization for green growth and efficient trade.
By deepening cooperation, Southeast Asian countries can build an integrated energy infrastructure, harmonise policies, mobilise innovative finance, and share technical expertise within frameworks like ASEAN’s governance to collectively meet net-zero targets and achieve SDGs by 2030. This approach addresses funding gaps, climate risks, and fragmented markets that currently hinder progress across the region.
The conference was graced by Dato' Sri Haji Fadillah bin Haji Yusof, Deputy Prime Minister of Malaysia, who emphasised the importance of sustainable development and the need for collective action to address climate change. The conference served as a platform for dialogue and commitment towards a sustainable future for Southeast Asia and the world.
[1] ASEAN Centre for Energy [2] ASEAN Centre for Energy [3] United Nations Development Programme [4] ASEAN Centre for Energy [5] United Nations Development Programme
