DPM Heng emphasizes the role of finance in achieving net-zero goals and tackling climate change at the NUS event.
Deputy Prime Minister and Coordinating Minister for Economic Policies Heng Swee Keat delivered a speech at the Sustainable And Green Finance Institute (SGFIN) Sustainability Summit held on 21 March 2024. The event, organized by the National University of Singapore, focused on the critical challenge of climate change and the essential role of sustainable and green finance in addressing it. DPM Heng highlighted Singapore’s commitment to net-zero emissions by 2050, the importance of international cooperation, and the need for innovative solutions in finance to support the green transition.
Addressing a distinguished audience, DPM Heng outlined the clear and present dangers posed by climate change, including rising sea levels and extreme weather events, which have become more frequent and intense. He pointed out that Singapore has been warming at a significant rate, underscoring the urgent need for action. To combat these challenges, Singapore has set ambitious targets under its Green Plan 2030 and is investing in sustainability research across various domains.
DPM Heng stressed the pivotal role of finance in enabling countries, especially in the Asia-Pacific region, to step up climate action. He called for the mobilization of significant financial resources, estimated by McKinsey to be over US$3 trillion for Asia to achieve net-zero by 2050. He suggested three main strategies to mobilize finance for the region’s pathway to net-zero: deepening the talent pool in sustainable finance, establishing robust regulatory standards and analytical tools, and catalyzing venture and private equity capital for deep-tech innovations.
He also highlighted the importance of policy innovations such as carbon pricing and the creation of platforms like Climate Impact X for carbon credit exchange. Through initiatives like the Singapore-Asia Taxonomy for Sustainable Finance and the Financing Asia’s Transition Partnership (FAST-P), Singapore aims to provide clarity to investors and mobilize financing for green and transition financing in the region.
DPM Heng concluded his speech by emphasizing the critical role of the financial sector in addressing climate change. He called for continued investment in sustainability skills, closer collaboration with academia and industry, and innovation at scale. The signing of a Memorandum of Understanding between the Sustainable and Green Finance Institute and the Energy Policy Institute was highlighted as a step towards deepening collaboration in the fight against climate change.
Source – PMO
