Innovative Funding Mechanisms Can Accelerate ASEAN's Transition Towards Low-carbon Economy - Amir Hamzah
KUALA LUMPUR, April 7 (Bernama) -- Innovative funding mechanisms are vital for ASEAN to accelerate its transition towards a low-carbon economy, while strengthening climate resilience, in a just, inclusive and orderly way, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said Malaysia as ASEAN chair is committed to driving transformative priority economic deliverables that address the region’s urgent climate challenges through finance.
"Our priority areas include catalysing access to finance for a just and orderly transition and building a climate-resilient ASEAN. This involves securing innovative funding mechanisms and solutions to support infrastructure initiatives like the ASEAN Power Grid and the carbon capture and storage projects.
“I trust that if we put our minds to it, together, we can unlock the great potential and opportunities that climate action presents and leave behind a legacy of enduring economic prosperity for generations to come,” he said in his opening remarks at the ASEAN Investors Roundtable here today.
At the roundtable entitled 'Unlocking Opportunities to Advance ASEAN Climate Initiatives’, Amir Hamzah said the ASEAN region is well positioned to drive the green transition and efforts to build climate resilience, while strengthening economic and energy security.
“We have seen this in the past with the push towards renewable energy generation. On this front, ASEAN positioned itself as an important player in the global supply chain, particularly for solar technology, and we remain so till today.
“That is why, rather than see climate action as a burden or drag on growth, it is an opportunity to light up new engines of growth. For this, it will be important for domestic backward and forward linkages in supply chains to be enhanced within ASEAN and not forgetting to develop human capital to fully harness the growth potential,” he said.
In directing financial flows towards decarbonisation and green efforts, Amir Hamzah said the region has developed the ASEAN Taxonomy for Sustainable Finance which investors, financiers and funders can refer to when making their decisions.
He added that the fourth version of the taxonomy is set to be released by year-end.
“The economic and climate imperatives are clear, but achieving meaningful progress requires a supportive regulatory environment shaped by the public sector. Indeed, the public sector plays a critical role in accelerating green investments.
“However, governments cannot be the sole driver of climate action. Given the scale of investments needed, it would be challenging for governments to meet all funding needs as we balance and manage the trade-offs between economic development and climate expenditure,” he said.
In this regard, he said collaboration between the public and private sectors will be key, of which a public-private and philanthropic partnership (4Ps) model, will be key to accelerating climate action that aligns with both national and regional priorities.
“Of course, there could be many modalities, such as blended finance, that can be explored. Specifically, Islamic finance offers innovative structures that can be tapped,” he said.
The rountable was held in conjunction with the four-day 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) and related meetings, which begin today.
More than 300 delegates, comprising ASEAN finance ministers, central bank governors, international financial institutions and private sector representatives, are expected to attend the AFMGM and related meetings, investment conference and exhibition.
-- BERNAMA