Asia’s climate finance remains ‘severely’ underfunded

The region faces an annual climate funding gap exceeding $1t (US$800b).

Asia remains severely underfunded to drive decarbonisation and build climate resilience, according to the National Climate Change Secretariat of Singapore.

“Asia faces an annual climate funding gap exceeding $1t (US$800b). Whilst public capital is available but insufficient, ample private capital is hesitant to commit significantly due to high perceived risks,” said Singapore’s Ambassador for Climate Action Ravi Menon.

By 2080, over 1 billion people in South and Southeast Asia could be affected by extreme heat and losses could reach about 40% of gross domestic product by 2100.

The ambassador noted that partnerships across public, private, and philanthropic capital can help plug the gaps in Asia’s climate finance.

Menon said that Asia contributes to half of global emissions and will account for 90% of the world's future energy demand growth.

However, the climate philanthropic space remains at a nascent stage. Globally, less than 2% of philanthropic giving goes towards preventing climate change with only 12% going to Asia.

($1=US$0.77)

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