Asia needs $7.7 trillion in funds to be able to address its targets for renewable energy and energy efficiency projects until 2035, a new report said.
A report by the Asia Investor Group on Climate Change (AIGCC), revealed that there has been a shift in implementing climate risk and responsible investment into business activities.
“We know that between 2014 and 2035, USD 7.7 trillion is needed for renewable energy and energy efficiency to meet the demands of China, India, Japan and Southeast Asia if the world is to meet a 2-degree Celsius warming target,” Investor Group on Climate Change CEO Emma Herd said.
“We look forward to working collaboratively to help investors around the world shift trillions of dollars in investments to clean energy. It is a tremendous challenge and will only be achievable if we work together,” said Mindy Lubber, director of the Investor Network on Climate Risk (INCR).
China has been leading in taking actions “to restrict finance to industries with high-energy consumption, high pollution, and excess pollution.”
Investors in the region also include Japan, India, South Korea, Singapore, Hong Kong, Taiwan, Indonesia, Malaysia, Thailand, Philippines, Vietnam and the Pacific.
Across the 12 markets, five have surveyed the possibility of having banking initiatives, four have sustainability codes, and five include sustainability disclosures in their stock exchange listings.
“The Paris Agreement clearly signaled to investors that the transition to a sustainable low carbon economy is underway and accelerating. Investors in all regions are now working collaboratively to mitigate carbon risks and grow new low carbon investments,” Institutional Investors Group on Climate Change (IIGCC) CEO Stephanie Pfeifer said.
Armstrong Asset Management (AAM) Managing Partner Andrew Affleck said many Asian countries are at the forefront of the impacts of climate change. Several institutions like AIGCC are now creating benchmark solutions “for scaling climate finance and investment throughout Asia.”
The AIGCC aims to create awareness among Asia’s asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing.