T Muhammad Taufik’s Post

As this article correctly points out, about 70% of hhe industrial greenhouse emissions already in the atmosphere were made by Western Europe and North America. These emissions have exhausted most of the earth CO2 buffer-capacity. Therefore I believe one can take this argument one step further. Rather than facilitate financing and currency hedging, western governments should actually FUND a substantial part of the extra investments developing nations need to make for their transition to a low-carbon energy system. Because these investments would not have been required or at least, nor at an accelerated pace, if western nations would have cut their emissions earlier, leaving more allowance for developing nations. And that is aside the issue of possible compensation for fossil-fuel resources that developing nations may not be able to monetize anymore due to emission constraints. This could be an interesting discussion ...

Not all commercial lenders will have developed the appetite and comfort to back RE projects under a project financed structure in developing countries. But some have. The host country must also be willing to create and maintain the right environment (legal, regulatory etc) for project financing to work.

All good points, but sadly the ESG conversation is largely focussed on E and G without fully understanding how the 'S' - people / mindset drive all of the above. Social factors currently remains a tick box exercise for most organisations or lightweight L&D programs , when it could be well integrated into leadership decision-making. The generational mindset trends are well in favour of this.

What you require to do is too link with some of the largest climate change fund in the world through G2G and bilateral aggrement with some of the biggest international cooperation agencies.

Financing is crucial for the green transition in developing countries, requiring private sector involvement alongside official assistance. However, the high interest costs and exaggerated risks associated with private lending hinder progress. By reducing risk aversion and promoting private finance, we can drive the much-needed investments for a successful green transition. We can do this!

Staggering reality. Looking forward to #EnergyAsia. Emerging markets and developing countries other than China will need to increase climate spending to around $2.4 trillion per year by 2030—more than four times the current level—of which $1 trillion would need to come from external sources.

In the long term, sustainability is definitely profitable for nearly every business, the challenge indeed is how to take the investment hurdle in short term for countries and companies who don’t have the financial means to make the transition.

It's probably worth to find out the things that would attract financing of green projects in developing countries.

There’s a need for an international agency like IMF to lead and coordinate such funding, and the political will to back it up

Agree Tan Sri T Muhammad Taufik . Responsibility burden does not fall on Energy Companies’ shoulders alone. Need to be supported with strong economic policies which involves financiers and investment arms