The Philippine Energy Efficiency Alliance (PE2) says that to achieve the energy efficiency goals in Southeast Asia, around USD 892 billion in investments will be needed by 2040.
During the Asia Clean Energy Summit (ACES) 2024, PE2 President Alexander Ablaza said that financial innovations such as sustainability bonds, real estate investment trusts, and carbon-focused bonds are essential strategies for channeling private sector funds to meet Southeast Asia’s energy efficiency investment needs.
“Innovative sustainability financial mechanisms and products such as sustainability bonds, real estate investment trusts, blended finance, carbon transition and retirement bonds, sustainability-linked debt, venture capital funds, green mortgages, and most especially, performance contracting and leasing, will play an immense role in mobilizing private capital to bridge the long-term EE investment gap,” said Ablaza.
The PE2 President highlighted that unlocking USD 595 billion in energy efficiency capital will depend on innovative financial structures, including ESCO contracts, public-private partnerships, and large-scale retrofitting led by governments.
He stressed the role of policy frameworks in driving growth in the ESCO sector, allowing these entities to function as specialized financing channels for energy efficiency projects.
