Global depopulation: saving the Earth while killing the economy? – Asia Times

Right now, animal community development is doing something much thought impossible –&nbsp, it’s hesitating. It’s then possible world population was top much earlier than expected, topping 10 billion in the 2060s. Therefore, it may begin to fall.

In wealthier states, it’s currently happening. Japan’s population is falling quickly, with a net loss of 100 people every minute. In Europe, America and East Asia, fertility rates have fallen quickly. Some developing nations with lower or middle incomes are on the verge of a decline.

This is an amazing change. Practitioners had predicted that our figures, which were away from around 8 billion immediately, could reach 12.3 billion ten years ago.

Some campaigners have tried to save the setting by halting world population growth for the past 50 years. In 1968, The Population Bomb forecast large epidemics and called for large-scale baby power.

Population growth is slowing without community control, and rich countries ‘ populations are declining, triggering furious but largely inefficient efforts to encourage more babies. What might the culture be affected by a declining global people?

Depopulation is currently happening

For much of Europe, North America, and some of Northern Asia, emigration has been live for centuries. While longer life expectancies mean that the proportion of very old people ( over 80 ) will double in these areas in the next 25 years, fertility rates have steadily decreased over the past 70 years and have remained low.

China was until lately the world’s most populous state, accounting for a fifth of the global community. But China, too, is then declining, with the drop expected to quickly expand.

By the end of the century, China is projected to possess two-thirds fewer people than yesterday’s 1.4 billion. The long neck of the One Child Plan, which ended in 2016, is to blame for the unexpected fall, which was too late to stop the decline. Japan was once the country’s 11th most filled state, but is expected to reduce before the end of the century.

shibuya crossing
For then, Tokyo’s Shibuya Crossing is one of the busiest in the world. However, Japan is starting to suffer a lot from emigration. Photo: Takashi Images / Shutterstock via The Talk

What’s going on is known as statistical change. As countries move from being mostly agrarian and agrarian to business and service-based economies, reproduction drops quickly. Communities begin to decline when low birth rates and lower fatality rates combine.

Why? Option is a significant factor. People are having more children later in life and, on average, have fewer because of better options and freedoms in terms of learning and careers.

Why are we immediately focused on emigration, given birth rates in wealthy countries have been falling for years? Most countries experienced a slight decline in birth rates before the Covid pandemic hit in 2020, while fatality rates rose as well. That strategy helped to accelerate the general trend of people drop.

A falling people poses real difficulties financially. There are fewer personnel accessible, and more senior citizens require assistance.

Countries in rapid decline may begin to halt migration to ensure they stay the fewest workers at home and stop the population from getting older and declining. The need for qualified employees will grow worldwide. Of course, migration does n’t change how many people there are –&nbsp, just where they are located.

Are these all prosperous country problems? No. People rise in Brazil, a huge middle-income state, is now the slowest on record.

By 2100, the earth is expected to have just six states where babies outweigh deaths – Samoa, Somalia, Tonga, Niger, Chad, and Tajikistan. The other 97 % of the world’s fertility rates are thought to be below replacement levels ( 2,1 children per woman ).

Bad for the business –&nbsp, good for the environment?

Fewer of us means a break for character –&nbsp, correct? No. It’s not that easy.

For example, the per capita energy consumption rate drops between 35 and 55, then drops, and then rises again at age 70 as a result of older people’s longer-term indoor habit and living only in larger homes. Population declines caused by population declines could be offset by this century’s incredible population growth.

Then there’s the great gap in reference use. Your carbon footprints is nearly twice as large as it is for residents of the United States or Australia, the world’s biggest total transmitter.

Eat more in wealthy nations. Therefore, it’s good that more of the world’s population will be higher emitters as more countries become wealthier and healthier but with fewer kids. Unless, of course, we decouple financial rise from more pollution and other economic costs, as many countries are attempting – but very carefully.

Hope more lenient immigration laws to increase the number of people who are working. This is already happening; movement has now past projected levels for 2050.

Migration to a developed nation can be useful for both the new country and the country where they were born. Environmentally, it does improve per capita emissions and economic effects, given the website between income and emissions is pretty obvious.

line at airport
As communities fall, states will compete for experienced workers. Image: PeopleImages.com – Yuri A / Shutterstock via The Talk

Then there’s the looming tumult of climate shift. As the planet heats up, forced movement– where people have to leave home to avoid drought, conflict or another climate-influenced disaster –&nbsp, is projected to jump to 216 million people within a quarter century. Forced movement may change pollution patterns, depending on where individuals find shelter.

Putting all of these things away, it’s possible that a declining global population will lower overall consumption and lessen the strain on the environment.

Environmentalists have long hoped that the world’s population will decline despite concerns about urbanization. They might shortly receive their wish. Not through imposed baby control laws, but mainly through the options of educated, wealthy women choosing to live in smaller families.

Is whether declining population may lessen the pressure on the environment remains a mystery. This is not a guaranteed outcome unless pollution reduction and consumption patterns change in developed nations.

Andrew Taylor is associate professor in population, Northern Institute, Charles Darwin University and Supriya Mathew is postdoctoral scholar in climate change and health, Charles Darwin University

This content was republished from The Conversation under a Creative Commons license. Read the original content.

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AWS launches Infrastructure Region in Malaysia with US.2bil investment through to 2037

  • higher funding than the US$ 5 billion that was first announced in 2023
  • Put about US$ 12.1 bil to GDP, help 3.5k work at physical companies yearly

Seen as a significant step towards fulfilling the vision of Malaysia’s New Industrial Master Plan 2030 to build a highly skilled, innovative, prosperous, inclusive, and sustainable economy.

It’s making a bigger devotion to Malaysia. Amazon Web services ( AWS ) an Amazon.com, Inc.company first announced the launch of its AWS Asia Pacific ( Malaysia ) Region in March 2023 and estimated the investment to be US$ 5.82 billion ( RM25.5 billion ) through to 2037.

Today however it announced that AWS is planning to invest an estimated US$ 6.2 billion ( RM29.2 billion ) in Malaysia through 2038.

AWS launches Infrastructure Region in Malaysia with US$6.2bil investment through to 2037The new AWS Region in Malaysia, led by Prasad Kalyanaraman ( pic ), vice president of infrastructure services at AWS, enables organizations across Asia Pacific to fully exploit the potential of the world’s most extensive and reliable cloud, assisting customers in deploying advanced applications with a wide set of AWS technologies like AI and ML. With today’s release, AWS is happy to support Malaysia’s modern transformation and help promote its function as a local hub for AI”.

AWS Regions are made up of Availability Zones, which place facilities in specific and unique geographic locations. Three Availability Zones are located far enough away from each other to support customers ‘ business continuity, but close enough to offer low overhead for large availability applications that use various Availability Zones.

DNA is ensure that two of its three information centers are in Johor and Cyberjaya, both of which are in the Klang Valley.

According to AWS, starting now, engineers, startups, entrepreneurs, and organizations, as well as state, knowledge, and nonprofit businesses, will have greater choice for running their applications and serving end users from AWS information centers located in Malaysia.

It already has a number of leading level firms as its customers including Bursa Malaysia, CelcomDigi, GX Bank Bhd, PayNet, Petroliam Nasional Bhd and Tenaga Nasional Bhd. The Department of Broadcasting Malaysia is one of the many government agencies that use it.

Amazon has adopted the same model with its AWS Partner Network ( APN), which consists of tens of thousands of independent software vendors ( ISVs ) and systems integrators ( SIs ) around the world, in the same way that enterprise tech vendors like IBM, Microsoft, HP, and Cisco use partners in overseas markets to boost sales. Now two Indonesian companies, Aerodyne and Tapway, are part of the APN.

AWS said that the construction and operation of the new AWS Region is anticipated to contribute approximately US$ 2.1 billion ( RM57.3 billion ) to Malaysia’s gross domestic product ( GDP ) and will support an average of more than 3,500 full-time equivalent jobs at external businesses annually through 2038. The company shared data from an economic impact study it commissioned.

These jobs, including construction, service maintenance, architecture, telecommunications, and others within the government’s broader economy, may be part of the AWS offer network in Malaysia.

Tengku Zafrul, Minister of Investment Trade & Industry ( MITI), stated,” The launch of an AWS infrastructure region in Malaysia increases our country’s capabilities for digital innovation.

” This step is a major step towards fulfilling the perspective of Malaysia’s New Industrial Master Plan 2030 to create a highly skilled, modern, successful, equitable, and sustainable economy. We think that the transformational potential of AI, cloud computing, and digitalization are key factors in Malaysia’s effort to become an Asian hub for manufacturing and services. The AWS infrastructure Region will help ensure Malaysia stays competitive on the global stage as the largest investment made by an international technology company in Malaysia, according to Zafrul. &nbsp,

AWS Malaysia claims to have trained over 100 000 people in Malaysia in cloud skills since its direct presence in Malaysia in 2017. Through AWS Skills to Jobs Tech Alliance and AWS Training &amp, Certification programs like AWS Academy, AWS continues to invest in educating developers, students, and the next generation of Malaysian IT leaders in cloud skills.

With the launch of the AWS Asia Pacific ( Malaysia ) Region, AWS has 108 Availability Zones across 34 geographic regions, with announced plans to launch 18 more Availability Zones and six more AWS Regions in Mexico, New Zealand, the Kingdom of Saudi Arabia, Taiwan, Thailand, and the AWS European Sovereign Cloud.

Each Availability Zone has independent power, cooling, and physical security, and is connected through redundant, ultra-low-latency networks. Customers who want to have high availability on Amazon can design their applications to run in several Availability Zones to achieve even greater fault tolerance.

AWS offers the broadest and deepest portfolio of services, including analytics, compute, database, IoT, generative AI, ML, mobile services, storage, and other cloud technologies. Customers from startups and businesses to public sector organizations and nonprofits will be able to use cutting-edge technologies from the world’s leading cloud provider to spur innovation, satisfy data residency requirements, achieve lower latency, and satisfy the growing demand for cloud services in Malaysia and throughout Asia Pacific.

The new crop of AI-built data centers ‘ fervent appetite for power has also increased the demand for power in Malaysia. With the launch of the Corporate Renewable Energy Supply Scheme ( CRESS) in September, the Malaysian government is allowing third parties to access the country’s electricity grid in response to the high demand. The emphasis is on the supply of green electricity.

Once introduced, buyers can negotiate directly with any renewable energy power plant for green supply, said the Ministry of Energy Transition and Water Transformation.

Since 2020, Amazon has become the largest corporate buyer of renewable energy in the world.

At the same time, it is working on ways to increase the energy efficiency of its data centers —optimizing data center design, investing in purpose-built chips, and innovating with new cooling technologies. According to a new report from Accenture, which was commissioned by AWS, AWS’s infrastructure is up to 4.1 times more efficient than on-premises, and when workloads are optimized on AWS, the associated carbon footprint can be reduced by up to 99 %.

Additionally, AWS is committed to being water positive by 2030, returning more water to communities than it uses in its direct operations.

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City hails food bank scheme for homeless

Pornphrom: Poor, needy get help
Pornphrom: Poor, poor find help

According to City Hall, its food banks program has transformed 315 tons of leftover food that would have otherwise been thrown away as waste into over 1.3 million dishes for the state’s underprivileged and vulnerable inhabitants.

Since BKK Food Bank launched on Aug 8, individuals and businesses across the town have donated 315, 741.42 kg of profit foods, which have been redistributed to 67, 449 citizens in want, said Pornphrom Vikitsreth, director to Bangkok government Chadchart Sittipunt on conservation.

” The project has also helped cut the state’s carbon footprint by 789, 825.79 kgCO2e]kilogrammes of CO² equivalent ]”, said Mr Pornphrom.

BKK Food Bank, which is one of the Bangkok Metropolitan Administration’s ( BMA ) programmes designed to ensure food security, is meant to improve access to food among low-income and vulnerable groups, said Mr Pornphrom.

” Left unused, profit meal would have to be discarded as spend, which has a negative effect on both the environment and the economy”, he said.

” With a good management system, surpluses could be redistributed to people who ca n’t afford food for whatever reason,” according to the article.

From Tuesday through Thursday, donors may drop off income foods at the BKK Food Bank drop-off location in their neighborhood. He explained that the food may be stored at the city office for after supply.

Those who are interested in giving are encouraged to get in touch with their neighborhood area company for more details.

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CNA Explains: Why companies issue sustainability reports, and how to make sense of them

To be sure, for fact-checking might be hard for the common man on the street, but one method is to look out for the inspector’s comments, said Assoc Prof Law.

Readers may also “be cautious” and determine if there’s a bias towards portraying a glowing statement card.

A great sustainability report should not only address the company’s achievements. If you see that, then that might not be a pretty healthy report”, Assoc Prof Law said.

He cited European food company Nestle, which discussed potential child labor in its most recent sustainability report.

For Singapore-listed companies, climate-related statements and change ideas remain lacking, according to at least one review.

Only 39 % of the 535 companies listed on the SGX’s FY2022 sustainability reports were taken into account in their overall risk management, according to the analysis.

Less than a quarter of respondents assessed the effectiveness of their methods in light of various climate scenarios.

And only 12 per share of corporations produced “reasonably extensive” climate change programs, noted the research done by SGX Regulation and NUS ‘ Centre for Governance and Sustainability.

The publication of Scope 3 pollution is another space that needs to be filled, according to authorities.

This is mainly due to businesses being more knowledgeable about measuring Scope 1 and 2 pollutants. The issue is made even more difficult by problems in gathering pertinent information from providers across the benefit chain, they added.

More can be done, according to Assoc Prof Law, given that Scope 3 pollution account for more than 70 % of the carbon footprint for the majority of businesses.

In the end, impact is crucial when creating a strong conservation report.

NUS ‘ Prof Loh noted that there has been” a lot of inflation in information” and sustainability information “keep getting longer and longer” in recent years.

” We need to improve… There’s a needed to go back to the fundamentals: An general tale, how does it fit with your company, climate data and how you’re handling the whole value chain. That’s all we need”.

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Why is Princeton Digital Group’s flagship AI data centre in Johor a boost for Malaysia?

  • 150MW JH1 posts Malaysia as a local hotspot for AI-ready information centres
  • combines native talent with tech innovation to promote the nation’s modern growth

Why is Princeton Digital Group's flagship AI data centre in Johor a boost for Malaysia?

The recent unveiling of the first phase of Princeton Digital Group’s ( PDG) JH1 data center campus in Johor, the state with the southernmost state in Malaysia, marks a significant milestone in the country’s digital infrastructure landscape. With the aid of this growth, the nation becomes a strong competitor in the country’s rapidly expanding AI and cloud computing industries. However, the swift execution of this 52MW job, part of a larger 150MW complex, demonstrates PDG’s execution capabilities and Malaysia’s willingness to embrace and promote cutting-edge professional investments.

Located in Sedenak Tech Park (STeP ), PDG’s JH1 college is dubbed as one of Southeast Asia’s largest data center services. It serves as PDG’s flagship AI-ready center in Malaysia and caters to international hyperscalers and businesses with demanding mathematical requirements. This service is piece of PDG’s broader Asian collection, which spans 21 data centres across 15 cities in 6 countries, positioning the business as a critical infrastructure provider in the region’s fast growing modern economies. &nbsp,

In a media briefing held at the campus last week, Asher Ling&nbsp,, chief technology officer and managing director Of PDG Singapore ( pic ) told reporters that the Johor campus benefits from excellent connectivity, access to multipleWhy is Princeton Digital Group's flagship AI data centre in Johor a boost for Malaysia?fabric roads, and proximity to key local data systems. ” Johor offers a unique blend of communication, system, and ability, making it an ideal place for our latest data center campus”, he impressed.

Ping highlighted that while standard factors like electricity, land, and space remain important, two new considerations have emerged as important: access to alternative energy and scalability. Ling praised Malaysia’s forward-looking National Energy Transition ( NET ) plan, noting its alignment with regional sustainability goals.

The NETR sets ambitious goals for Malaysia, aiming to achieve net-zero emissions by 2050. The plan outlines a gradual increase in renewable energy shares, targeting 31 % by 2025, 40 % by 2035, and an impressive 70 % by 2050.

The service, completed within 12 months of starting building in 2023, is also part of PDG’s modern SG ® approach which aims to create a seamlessly integrated information centre habitat spanning Singapore, Batam, and Johor. This approach gives large enterprises and hyperscalers unprecedented flexibility when deploying their infrastructure.

Ling also emphasized the importance of scale, pointing out that to meet the growing demand for AI and digital services, modern data centers require significantly larger parcels of land. ” The JH1 facility is designed to meet the increasing demands for high-performance computing and data storage, driven by the rapid growth of AI and digital services”, Ling added, underlying PDG’s commitment to future-proofing their infrastructure.

For context, STeP is located in Johor’s Kulai district, just 70 kilometres north of Singapore. It provides low-latency connectivity to key markets for park-based data centers. This prime positioning, abundant land, and cheaper power have attracted major players like Nvidia, AirTrunk, GDS International, and YTL Power alongside PDG. Southern Johor is emerging as a regional data center hub, which places Malaysia at the forefront of the AI revolution and draws in international tech investments.

What sets JH1 apart?

The JH1 campus features cutting-edge cooling technologies that strike a balance between performance and sustainability because it was designed to handle the intense workloads of AI. Ling emphasised the facility’s cutting-edge capabilities, noting,” We’re pushing the boundaries of air-cooled solutions, with our server racks capable of handling up to 40 kilowatts of power consumption and heat dissipation per rack. This is far beyond the typical 5 to 10 kilowatts per rack that many data centers use.

Advanced air cooling systems are used by JH1’s high-density computing environment to effectively manage the significant power requirements of AI processing while minimizing the impact on the environment. In May, before launching the first 52MW phase of JH1, PDG secured a RM1.28 billion green loan from Maybank, Standard Chartered Bank, and UOB Malaysia. This loan, PDG’s first aligned with its green finance framework, marks a significant step towards reducing resource consumption and emissions in regional AI infrastructure. In designing and running data centers for AI and high-performance computing, PDG’s commitment to sustainability is demonstrated.

When asked how PDG had integrated sustainability into the company’s core design, Ling explained that they have installed solar panels on the roofs and will continue to do so for the upcoming phases, utilizing Malaysia’s abundant sunlight to generate renewable energy on-site. This demonstrates PDG’s commitment to lowering its operations ‘ carbon footprint and aligns with the nation’s National Energy Transition Roadmap.

Furthermore, the facility incorporates energy-efficient chillers and other state-of-the-art cooling technologies. Even though they come with a higher upfront cost, we have chosen the most effective chillers available. The long-term benefits of energy savings and reduced environmental impact make it worthwhile”, Ling noted.

Another feature of the JH1’s design is how it incorporates flexibility for upcoming upgrades. As demand for AI computing grows,” We’ve developed the flexibility to accommodate next-generation liquid cooling solutions,” Ling said. Strategically speaking, a forward-thinking approach ensures that JH1 can adapt to emerging technologies, making it a long-term asset for Malaysia’s digital economy.

The current economic impact

The economic effects of PDG’s investment go far beyond the facility itself. As Ling revealed, PDG has employed about 90 staff. ” And we’re going to grow between 300 and 400 in the very, very near future”, he said, adding that this job creation, particularly in high-skilled tech roles, is a significant boost to Malaysia’s workforce development in the digital sector.

Moreover, PDG’s commitment to nurturing local talent is evident in its hiring practices and training initiatives. Ling proudly shared,” When we first started, we had no Malaysian staff. Today, on our PDG Malaysia team, I am proud to share that 70 % of our team are Malaysians”.

Ling claims that the focus on local talent extends to all the essential areas for data center operations. Ling elaborated on the diverse skill sets required:” We need mechanical engineers, electrical engineers, IT engineers, network engineers, and project managers who know how to do a build. And then you have a distinct team that is adept at running things.”

PDG’s talent development approach is multifaceted, combining immediate hiring strategies with long-term talent pipeline development. Specifically, PDG has been innovative in identifying and attracting talent from adjacent industries. PDG has established partnerships with local educational institutions in order to recognize the need to develop the next generation of data center professionals.

With UTM in Johor, we’ve started a graduate engineering training program, which is similar to an apprenticeship model in that it involves working in a live data center with top mentors who can advise and instruct you, and perhaps help with the advancement of a career,” Ling said.

Overall, the launch of PDG’s JH1 campus represents more than just a new data centre in Malaysia. It signifies a pivotal moment in the country’s digital transformation journey. By combining cutting-edge AI capabilities, sustainable design, and a strong focus on local talent development, projects like JH1 are laying the groundwork for Malaysia to become a key player in the global digital economy.

Southern Johor, Malaysia’s emerging data center hub, could have a significant impact on shaping the region’s technological landscape as the demand for AI and cloud computing grows. In order to create a robust ecosystem that can support long-term growth and innovation in the tech sector, such projects will likely need to continue to collaborate with government-supported educational institutions, private sector investments, and other sources of funding.

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Temasek has S billion in sustainability investments. Should you put your money in such stocks too?

According to Ms. Tan of OCBC, businesses are more tenacious if they are run properly, prepared for obstacles ahead, and are considering potential risks and opportunities.

As more states develop laws, money is likely to move to companies with robust statements on sustainability, she added.

Investing effectively is expected for businesses, companies and institutions, said&nbsp, Mr Stephen Beng, mind of ESG at Phillip Capital Management.

” But most importantly, it’s ) what our world needs if we want to continue eking out the many advantages of the habitat services our natural earth provides.”

HOW TO GET INTO SUSTAINABLE Opportunities

Mr. Ling of DBS advised consumers who want to create a lasting investment portfolio to conduct their own research and choose the issues that are most important to them.

The company’s carbon footprint, the company’s use of green or sustainable energy sources, and the fair pay of its employees are some questions to ask.

According to Mr. Ling, various factors, such as board member visits and minority shareholder privileges, may also be pertinent.

According to him,” It is important to know that even the most socially responsible people are not possible to tick all the right boxes,” adding that there may also be instances of false reporting.

Ms. Koh of Standard Chartered outlined three typical methods that financial traders use. The first is exclusions, where consumers avoid questionable industries like coal and wagering to fit their values.

The second is ESG connectivity, which acknowledges that non-financial risks and opportunities may be financially content to an expense.

The last one is focusing on conservation elements such as climate change mitigation, water and energy move.

Consumers do have the ability to build more resilient portfolios with ESG integration because they can take into account a wider range of risks and with lasting themes, she said.

OCBC’s Ms Tan pointed to exchange-traded resources that have been screened for ESG factors as a practical way to invest effectively.

The lender has a collection of impact investing and electric vehicles. The past has a one-year annualised profit of 23.08 per share, while the latter reported 14.02 per cent for the same sign.

These do not necessarily reflect the full range of market return expectations for sustainable investments, but they do serve as an example of how sustainable investing does n’t always translate to lower returns, according to Ms Tan.

MISALIGNMENT, GREENWASHING

Retail investors should be aware of misleading and changing global conservation standards, Ms. Tan continued.

According to her,” Cash that were previously regarded as sustainable may no longer qualify,” making it challenging for traders to identify sustainable possibilities. Local instructions and global regulations can give investments credibility and quality.

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Why global uncertainty won’t undermine transition goals | FinanceAsia

When FinanceAsia editorial board member, Sunil Veetil, took on his Singapore-based leadership role as head of Commercial Banking Sustainability for Apac at HSBC back in summer 2022, Asia was in the throes of pandemic uncertainty. Market to market, the approach of each governing authority proved to be heavily nuanced: Singapore had not long lifted restrictions to social gatherings and would soon abandon the mask mandate; while Hong Kong’s decision makers would deliberate for a further seven months before considering any such easing.

Yet, with hindsight being 20/20 (some may recoil at reference to the fateful numerical sequence), there was a sense of steadiness – albeit slow – in the unravelling of pandemic protocol which sits in stark contrast to today’s atmosphere of fast-paced-but-frequently-wavering global political and socioeconomic uncertainty. With over half of the world going to the polls this year – and a lot riding on upcoming election outcomes including France’s hung parliament and the final months of campaigning in the US; geopolitical complexities and tensions are pervading all market developments, not least the macroeconomic and inflationary outlook.

Reassuringly, however, Veetil is resolute in his resolve that global climate aspirations will forge ahead in spite of current conditions. “When you talk climate, you have to look long term,” he told FA. “Whilst there are short-term disruptions and changes – some of which have been positive; for example, the supply chain dispersion that has been taking place across the Asian region – it’s important to view climate from a longer perspective.”

He pointed to the outcomes of last November’s COP28 UN Climate Change Conference in Dubai, which served as a global stocktake of progress achieved by key economies towards the goals of the Paris Agreement, at the halfway point to their ultimate delivery by 2030. While the event publicly affirmed failure in capacity to limit global warming to 1.5 degrees Celsius by the end of this century; for the first time, it achieved consensus among all 196 heads of state and government officials to sanction the “beginning of the end” of the fossil fuel era, with efforts to eradicate their use by 2050. The conference laid the ground for a “swift, just and equitable transition, underpinned by deep emissions cuts and scaled-up finance”, a strategy which complements HSBC’s own ambitions to align its financing portfolio to net zero by 2050, as announced by the bank in 2020.

Climate management, Veetil explained, involves tackling a “perfect triangle” of challenges: politics, climate and the overall socio-economic picture. “The socio-economic impact of climate upon people is becoming all the more evident as we proceed… and to bring this all together, is the flow of capital.” He noted that while a lot of climate policy frameworks and trendsetting comes from Europe, the impact – “where the rubber hits the road” – is in Asia “and this is where the complexity is.”

Expanding on his comments for FA’s analysis of Asia’s debt capital market (DCM) activity, in which sustainable transactions were highlighted as playing an increasingly significant role within regional DCM dealmaking, Veetil said that typically, it continues to be the larger regional entities who lead the way in terms of raising significant capital to support sustainability aims. “The large tickets will always be driven by the sovereigns; and then it’s usually state-owned-enterprises (SOEs) or those large-cap private operators active in oil and gas or power and utilities, who are signing the big-ticket transactions.”

This seems to have been the case in 2024 so far, with Asia’s main players pioneering innovative climate transactions. In February, Japan followed up on its 2021 introduction of a transition finance framework by auctioning the world’s first sovereign climate transition bonds as a financing tool to support market growth alongside industry decarbonisation; while during the same month, HSBC participated in the first global multi-currency digital green bond offering, issued in Hong Kong.

“However, we are seeing green loans and sustainability-linked loans (SLLs) pick up at the mid-level and below this, in response to sustainable supply chain requirements. Of course, Asia is a supplier to the world.”

Veetil noted how European and North American buyers have become accustomed to outsourcing their emissions to Asia and that this had contributed some positive social and economic repercussions across the region, including an overall rise in income levels. With increasing pressure to report on and regulate sustainability, he explained that Asia-based manufacturers are not only on top of scope 3 metrics, but are pushing for capital expenditure (capex) to contribute to longer-term sustainability: to counteract those emissions that extend beyond the products themselves such as packaging, as well as manufacturing machinery. 

“Take a textile manufacturer that supplies to one of the big fashion brands. It’s not just that they want a sustainable supply chain and a robust working capital requirement; they’re also looking at how to install a wastewater treatment plant or rooftop solar. They are actively seeking capex investment plus working capital that is sustainable.”

Additionally, he highlighted the emergence of a circular economy to facilitate long-term sustainability, as being a growing trend: “Look at the battery ecosystem for example, a huge industry is developing around the recycling of batteries – additionally the recycling of solar panels, turbines and so forth is being considered. The recycling industry is becoming larger as ultimately, unless there is a circular economy around it, resources will be wasted. New action is being taken to develop a fully circular product lifecycle.”

The role of tech

Veetil emphasised various strides made across the field of technology, as being key to the future direction of the sustainability market. He commended Japan’s move to funnel over 55% of the proceeds from its recent climate transition issuance into research and development (R&D). “The future impact of investment going into research is set to be significant,” he said, noting the market’s action to invest in and develop domestic hydrogen production.

“Hydrogen has real potential to drive transition across hard-to-abate sectors such as steel, construction and aviation. But currently the market is ‘grey’ as it requires coal power to extract it from H2O.” He added that China and India are also investing heavily in the development of hydrogen. “It’s a space to watch.”

Climate-related research and technology is one of the areas which HSBC’s New Economy initiative aims to support. Since June last year, the bank has launched two fundraising strategies in Asia to invest in early-stage high-growth and tech-focussed businesses, to promote regional innovation. The first strategy, a $3 billion New Economy Fund (NEF) targets opportunities in Hong Kong and the surrounding Greater Bay Area (GBA), while a more recently launched $200 million vehicle targets investment across Singapore and Southeast Asia. Last month, the latter signed its first dedicated social loan to support Vietnamese venture-backed biotech start-up, Gene Solutions, which aims to enhance the accessibility and affordability of essential healthcare services across Southeast Asia. Another recent contribution included a $30 million green and social loan to Indonesia’s acquaculture and intelligence start-up, eFishery, which works to empower smallholder fish and shrimp farmers through tech, by increasing feed efficiency and reducing waste.

Veetil agreed that there is a strong socio-economic angle to sustainability developments in Southeast Asia, offering the example of electronic vehicle (EV) two-wheelers: “In certain areas in Southeast Asia (such as Vietnam and Indonesia) – as well as India, the majority of the population can’t afford to buy cars. We are going to see EV two-wheelers becoming more prevalent, popular and impactful… In fact, this is already happening and will continue to do so in the short- to medium-term.”

He added that the technologies emerging around carbon capture also offer real potential, but they “haven’t yet reached a sweet spot for mass adoption.”

Regulatory developments

But perhaps the most influential factor set to shape the sustainability landscape to come, is regulatory development and with it, clarity around how to deliver and enact a shared vision.

“What I am monitoring most closely on the regulatory side of things, is progress around the development of a country taxonomy,” Veetil disclosed.

“Reporting requirements are evolving quickly. Markets such as Hong Kong and Singapore have been very much at the forefront of this, but huge strides are also being made in geographies such as China and India, with new reporting requirements being introduced for listed companies.”

Singapore’s Accounting and Corporate Authority (Acra) together with Singapore Exchange Regulation (SGX RegCo) have mandated that listed companies start disclosing their climate impact in a phased manner, from financial year 2025.

“Over the next three years, most companies based in Singapore will report their climate data, which will certainly have an impact on the corporate mindset operating in the region,” Veetil said.

“Similarly, regulation being introduced elsewhere, such as in Europe, is taking effect globally. Take for example the new European deforestation regulation that has been published; as well as the carbon border adjustment mechanism (CBAM), which will soon take effect.”

“This is where we need a unified body to monitor and manage the direction of shared sustainability efforts. Currently this is something that is missing.”

Veetil suggested that various international entities are exploring options; and he proposed that efficacy could be found through a consortium of international central banks; or an governmental body such as the United Nations (UN) forming a platform involving corporates and financial institutions.

“We live in a very seamless economy, regulations in one country will definitely have an impact on the other.”

 


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Sustainable transformation: making transition finance stick | FinanceAsia

The Asia Pacific region is currently facing a significant gap in the race to fund decarbonisation – estimated at $US1.1 trillion by the International Monetary Fund (IMF).

However, this is not the only problem for a region whose coal-fired economies represent around half of global emissions, according to the International Energy Agency.

China alone accounts for 35% of global CO2 emissions, the agency says.

Speakers at the Sustainable Finance Asia Forum 2024 said that regulators will need to rebalance sustainable investment priorities – placing more emphasis on adaptation rather than mitigation – if the region’s most heavily polluting emerging economies are to meet their carbon zero targets.

Debanik Basu, the head of responsible investment and stewardship APAC at APG Asset Management, told a panel on harnessing transition finance for sustainable transformation that investment in mitigation (reducing greenhouse emissions at source) now represented the majority of transition funding.

He said the often more complicated task of climate adaptation – the need to change systems, behaviours and whole economies – was receiving scant attention.

“Currently the region is getting around $300 billion in transition finance so there’s a massive gap that needs to be addressed,” he told the conference. “Even within the small portion of finance that we are getting, more than 80 per cent of the funds are moving towards mitigation.

“Consensus estimates suggest that ideally it should be 50/50 between mitigation and adaptation.”

He said the other critical problem was that aspects of climate finance were not well understood and appreciated by the market overall, in particular within the agriculture and forestry segment.

“When you look at the NDCs (Nationally Determined Contribution) put out by a lot of countries, there are specific targets around climate change, but there aren’t explicit targets around forestry and agriculture,” he said.

“And even when there are targets, there is no clear roadmap. What all this means is that the institutional capacity is lacking. There are gaps in infrastructure and there are gaps in knowledge.

“As an investor, conversations with companies around biodiversity are at a very nascent stage.”

A question of taxonomies

Kristina Anguelova, senior advisor and consultant on green finance strategy APAC at the World Wildlife Fund, told the conference that regulation was moving in the right direction, guided by hubs such as Singapore and Hong Kong.

She added that the unofficial rivalry between Hong Kong and Singapore in terms of developing regulatory taxonomies was having a positive effect on the transition finance landscape in the region.

“I think the competition between Singapore and Hong Kong in this case is a good thing because it’s advancing regulation in the region quite a bit,” she said. “The Singapore Asia Taxonomy lays out transition taxonomy criteria across eight sectors.”

While the regulation is tailored to Singapore, she said she believed it would lay foundations for others to follow.

“It’s so important as a regulatory piece because it can serve as an incentive for investors to start to scale transition finance comfortably and confidently without the loopholes and the risks of potentially being accused of greenwashing,” she said.

In terms of biodiversity, she highlighted the nascent stage of biodiversity finance compared to climate finance, discussing the need for capacity building, regulatory clarity, and financial instruments to support nature-based solutions.

A case in point, she said, is the International Sustainability Standards Board (ISSB) which is developing standards aimed at developing a high-quality, comprehensive global baseline of sustainability disclosures focussed on the needs of investors and the financial markets.

“On biodiversity, I think we’re moving a bit slowly, but we’re getting there. Obviously coming from a science-based NGO, efforts can never be fast enough,” she said. “But the good news is that the ISSB will also be integrating the TNFD or the Task Force for Nature-related Financial Disclosures soon.

“Those jurisdictions that have adopted or committed to the ISSB will also be adopting those nature regulations.”

The challenge as always, she added, was that regulators had to strike a balance between mitigating financial risk and overregulating such that it slowed economic development.

Blended solutions

Building capacity, both speakers argued, would be critical to transition finance solutions to climate change and that new instruments, particularly in blended finance, were likely to be leading the charge.

“We are seeing beyond transition bonds to different types of instruments that are designed to go into blended finance structures such as transition credits which are based on the assumption that we can get carbon savings out of early retirement of coal-fired power plants,” Anguelova said.

One avenue that was currently being explored in a number of jurisdictions was concessionary capital: i.e. loans, grants, or equity investments provided on more favourable terms than those available in the market.

These terms could include lower interest rates, longer repayment periods, grace periods, or partial guarantees.

Of these instruments, Basu said, guarantees were evolving as one of the methods currently being pursued in several markets.

“What we are also seeing is that, apart from concessionary capital, a lot of public institutions are more comfortable with providing guarantees instead of direct capital because that then keeps the overall cost of capital down,” Basu said.

“It might be at a very nascent stage – and it is difficult to say if this is going to be the future – but it is developing,” he said.


¬ Haymarket Media Limited. All rights reserved.

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Singapore a ‘very attractive place’ to develop new climate technology: Bill Gates

Relationship WITH TEMASEK, ENTERPRISE SINGAPORE

By signing a memorandum of understanding ( MOU) to identify and support budding climate technology in Southeast Asia in April, the company made an announcement to collaborate with government agency Enterprise Singapore and state investment firm Temasek.

A joint money responsibility over the next three years is included in the MOU, which was announced at Ecosperity Week 2024.

The Breakthrough Energy Colleagues program will establish a hub in Singapore, its first provincial hub outside of the United States, to accomplish this.

Through the program, Singapore does co-fund and support deep-tech climate start-ups that deal with solar power and carbon footprint. This aims to assist the place in achieving its net-zero goal by 2050.

The program’s first grain money will be US$ 500,000. They may also get a worldwide network of business companions, mentors, experts, and investors.

” Breakthrough Energy looks at a full spectrum of game-changing solutions to address global warming,” said Lee Chuan Teck, president of Enterprise Singapore.

But you’ll be looking at a variety of technologies, including new non-carbon materials like gas and gas carriers, as well as novel ways to extract carbon from the atmosphere.

Calling the engagement a” earn- get proposition”, Mr Lee added that Enterprise Singapore hopes to take on more partners and address different global challenges like food protection, waste treatment, and healthcare.

Vice-president Ashley Grosh of Breakthrough Energy Fellows praised the “unprecedented professional skills” at Nanyang Technological University and the National University of Singapore.

We are hoping to instill the entrepreneurial spirit in all those experts in the area because we are aware of how much development and research is happening there, she said.

Singapore’s area also allows Breakthrough Energy to employ industry and business partners, added Ms Grosh.

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