MAS panel discuss financing mechanisms to expedite decarbonisation of 3 sectors
Less than 10% of global climate finance is being channelled to climate adaptation efforts.
The Monetary Authority of Singapore’s (MAS) Sustainable Finance Advisory Panel (SFAP) discussed possible financing mechanisms to accelerate the phase-out of coal-fired power plants in Asia and support the decarbonisation of the hard-to-abate aviation and maritime transport sectors.
During the discussion, the panel also underscored three factors that can accelerate the decarbonisation of the energy, aviation and maritime transport sectors:
- A comprehensive approach providing credibility for early phase-out projects and innovative financing structures, regulatory clarity on financed emissions, and appropriate policy reforms, will be needed to scale coal transition.
- Expediting the adoption of sustainable aviation and marine fuels is key to the decarbonisation of its respective sectors.
- Collaboration between public, private, and government sectors would be useful to identify opportunities in financing sectoral transitions, foster synergy between government policies and industry actions, and design innovative financing solutions.
On climate adaptation, the meeting noted that less than 10% of global climate finance is currently being channelled to adaptation efforts, financed mostly by the public sector.
Considering global warming is already causing more severe droughts, heat waves, and other climate-related disasters, SFAP members discussed possible solutions to scale up private financing for the region’s climate adaptation efforts.