If China submits more ambitious pledges to the UN first in the year, according to an economic think tank, its emissions of carbon dioxide could drop by a second by 2035 and meet the goals of the Paris Agreement. As part of their Paris obligations, nations must deliver new andContinue Reading
Qarbotech Sdn Bhd, which claims to be a technology pioneer in photosynthesis enhancement through advanced carbon quantum dots, has announced its expansion across Southeast Asia, driven by US$ 1.5 million ( RM6.2 million ) in a seed round , from investors, including 500 Global, Better Bite Ventures, ID Capital, EQT Foundation, and Epic Angels Limited.
Launched in 2018, the , investment , solidifies , Qarbotech ‘s , commitment to introducing its pioneering technology to new markets. It had earlier announced in Feb that it raised US$ 700, 000 in a plant square. The most recent statement is characterized as its grain expansion round. Data from Crunchbase , shows Temasek Foundation among its owners, while Khazanah Nasional gave it a give and Petronas Future Tech gave aid with non-equity help.
The funding , may allow it to range functions in areas such as Malaysia, Indonesia, Thailand, and Vietnam, where demand for innovative agricultural solutions is rising.
” We’re thrilled to embark on this new section of growth”, said Chor Chee Hoe, CEO of Qarbotech. ” Our solution, QarboGrow, is a milestone in plant science, using natural, biodegradable carbon quantum dots to dramatically improve light intake and increase crop yields by up to 60 %. This addresses issues with food safety and optimizes the use of fertilizers, thereby reducing the need for a lot of software that can cause dirt pollution and degradation.
As part of its development, Qarbotech is opening its second manufacturing center in Puchong, Malaysia, capable of producing 100, 000 gallons of QarboGrow regular. This facility represents a major step forward in meeting the country’s growing need for cutting-edge agricultural technology.
Amirul Merican, COO of Qarbotech, stated,” This purchase will help us to increase production and bring our branded alternatives to more farmers in the region, enabling them to make more with less economic impact.
The entrepreneur behind Qarbotech’s breakthrough technologies is Prof Dr Suraya Abdul Rashid, a leading nano scientist ranked among the nation’s top 2 % experts in 2022, 2023, and 2024. Her research supports the foundational knowledge of QarboGrow more, in line with the 2023 Nobel Prize in Chemistry for the finding of quantum dots.
” With over two decades of experience in nano, I am thrilled to discover classical lines finally achieving useful, large-scale influence in agriculture”, said Prof Dr Suraya, chairman and chief professor of Qarbotech and director of the Institute of Nanoscience and Nanotechnology, University Putra Malaysia. ” Our patented technology addresses the inconsistencies of photosynthesis using a scalable and sustainable approach, bypassing the need for genetic modifications, allowing us to directly address challenges in crop yield and climate resilience.”
Qarbotech’s innovations are already making an impact. A pilot project with PT Iceh Agro Indonesia in Indonesia that involved 400 hectares of rice fields increased yields by up to one tonne per hectare and significantly increased farmer incomes.
” Imagine the same farmer with the same land, labour, and workflow being able to produce up to 60 % more food. Qarbotech’s photosynthesis multiplier makes that possible. We are proud to provide additional financing to Qarbotech and believe their technology will be mission-critical for regions vulnerable to climate change”, said Khailee Ng, managing partner, 500 Global.
Michal Klar, founding partner at Better Bite Ventures, added,” Qarbotech embodies our commitment to supporting a more sustainable, climate-friendly food system through transformative technology, improving economic outcomes while lowering emissions. This innovative team and their effort to transform the world food system are a success, in our opinion.
The potential to increase crop yields across a range of climates and agricultural practices presents a significant market opportunity with over 500 million smallholder farmers worldwide.
” During our entrepreneurship competition in Southeast Asia, Qarbotech surprised us with their breakthrough in photosynthesis enhancement. Their innovation demonstrates that it is possible to increase farmers ‘ yields and economic outcomes while lowering carbon emissions. With EQT’s global expertise in agricultural investments, we aim to help Qarbotech overcome barriers to achieving scale”, said Cilia Holmes Indahl, CEO of EQT Foundation.
Beyond boosting productivity, QarboGrow’s unique carbon quantum dot technology promotes carbon sequestration by enabling plants to store more carbon dioxide, which results in lower greenhouse gas emissions. With each litre of product increasing carbon dioxide capture, QarboGrow’s global scaling could have a significant impact on efforts to combat climate change. This opens up the doors to carbon credits and offsets, which are becoming increasingly important in a world where emissions reduction is a top priority.
With far-reaching economic and environmental effects, Qarbotech’s technology is a breakthrough in agritech with increased yields and climate action.
With the support of the government and our industry-leading developers, Singapore may take the lead in the effort to increase the production of less polluting materials like cement and material in the area. If environmental protection laws are more enacted, this type of investment is important because it will require more extensive use of eco-friendly building materials.
It is easy to overlook how crucial plaster and steel are to Singapore’s future natural development because the majority of these crucial inputs are produced elsewhere. However, if green building components are made in a cooperative manner here in the area, it is significantly lower carbon footprints across various local supply chains and significantly increase Asia’s gross domestic product.
The margins are very great. If we do n’t take collective action, ASEAN’s GDP could drop by as much as 30 % by 2050, according to Swiss Re, more than any other region in the world.
This underscores the value of a shared role in our fight against climate change. It’s not just Singapore’s issue, it’s a shared challenge of making painful choices up.
If Singapore cuts emissions to significantly or too quickly, it will always strike a delicate balance, causing harm to the economy and possibly causing business disequities. Singapore is prone to the physical and economic effects of climate change, but if other nations drag their feet.
However, being at the forefront allows it to determine the course and establish business standards for others to adopt. There is potential to create more jobs, encourage innovation in clear systems, and develop Singapore’s world competitiveness and climate status.
Today, Singapore’s climate targets and policies only merit a “highly insufficient” rating. Will the next report card reflect our gizmo?
Matthew Dearth is the co-director of the Centre for Sustainable Finance Innovation and an associate professor of finance ( practice ) at Nanyang Technological University and Nanyang Business School.
Against this backdrop, Singapore will have to get its own way forth, he said. Through local and international forums, this means remaining opened and pushing for complimentary flows of industry and investments.  ,
We want Singapore to get their choice partner, “importantly, as countries and companies outside seem to diversify their risks and broaden their range of partners. We want to act as a trustworthy and trustworthy base from which they can operate, said Mr. Wong.
Using a fund comparison where professionals are always looking for “alpha” or the extra advantage that drives higher returns, Mr Wong said Singapore’s “greatest supply of alpha” lies in its reputation for respect, dignity and reliability.
” These features are a special source of competitive advantage… and it’s very difficult for others to recreate. I believe what’s real for Singapore applies to Temasek”, he said.
Yet as Temasek embarks on its second phase of transformation, these values , – ranging from an adherence to excellent standards and values, an ability to think long-term, grow with proper discipline and to add to the Singapore brand of quality, reliability, discipline and integrity - ,” cannot and must never change”, said Mr Wong.
These qualities make Temasek a well-known brand, and these qualities will help him maintain his value and reputation as a long-term partner.
Mr. Wong also touched on Temasek’s belief that “doing well, doing right, and doing good” in his speech.
Balancing and achieving all of these multiple goals is challenging, he said. Temasek and its portfolio companies ‘ ability to accomplish their goals depends a lot on their leadership and workforce.
He then expressed his gratitude to all the board members who have and continue to serve on Temasek’s behalf.
At the anniversary dinner, former chairmen Mr. Y Pillay and Mr. S. Dhanabalan were among those who were present.  ,” They gave their hearts and minds, and their sweat and tears to build what we have today … We owe them all a great debt of gratitude”, said Mr Wong.
The prime minister , noted that the government “has been careful not to have any role or influence in Temasek’s investment’s decisions”. Instead, its approach “has been to hold the board accountable for Temasek’s performance” . ,
” But this approach has been made possible only because we have board members who are committed and capable, and who can be trusted to work with the management to protect what we have inherited from Temasek, build on it, and pass it on to new generations in better shape than we started,” he said.
In closing, he said:” Tonight, I would like to put on record my appreciation to everyone in Temasek and the portfolio companies. Over the past five decades, we appreciate your numerous contributions.
I want to say a big” thank you” to everyone who has contributed to Temasek and the wider Temasek family, both past and present.
Temasek, which celebrates its 50th anniversary this year, has marked 2024 with initiatives such as the set-up of a S$ 150 million fund for skills training and talent development in Singapore.
It announced at the anniversary dinner that it would set aside$ 100 million as a concessional capital for climate change to help raise money for less-than-bankable projects.
It also launched a commemorative book- titled” By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It’ ‘ – that chronicles key events and milestones of the firm over the past 50 years.
” We were a strong and extraordinary test. In a statement delivered to more than 600 friends gathered at the resort, including Prime Minister Lawrence Wong, he said there was no map to observe and scarcely a compass to aid us chart our own program.
Mr. Lim outlined three key designs that are crucial to Temasek’s development as a global investment firm with a portfolio worth S$ 389 billion.
The first is endurance, which he described as the ability to recuperate and react quickly to change.  ,
This can be seen, for instance, from how the state investment has built” a adaptable and forward-looking collection to resist turbulent business cycles”.
Goal is another topic, according to Mr. Lim, noting that Temasek is not a business that focuses solely on its economic numbers.
Since 2003, it has been setting aside a portion of its net positive results above its risk-adjusted cost of capital for group products that meet the targets of connecting people, uplifting areas, protecting earth, and advancing features.
” I am happy to say that to meeting, Temasek’s presents to Temasek Trust have had an impact on about 3.7 million lives across Singapore and beyond”, said Mr Lim.
This article first appeared on Pacific Forum, and it has since been republished with your type agreement. Read the original below.
Australia launched its National Defense Strategy ( NDS ) in April 2024 by , stating , that the country will remain the “partner of choice” for the Pacific Island countries ( PICs ) when it comes to security cooperation. But why does this standing subject to Australia?
Australia, as a , end energy, is a vital regional head in the Pacific. Since the end of World War II, Australia has been in the Pacific place for safety assistance. Australia continues to be one of PIC’s biggest dealing partners and sponsors. Since 2008 Australia has  , invested , nearly A$ 14 billion of its official development assistance in the Pictures.
Being “partner of option” remains a key component of Australia’s NDS for the PICs, for many reasons, and now that competition with China for influence in the Pacific is a continuous reality, this means using Australia’s foreign influence and relationships to advocate for the Pacific’s needs.
First, climate change remains one of Australia’s best foreign policy interests. As a pro-Paris Climate Accord position, Australia has  , played , a major responsibility since 2015 in addressing the climate change matter in the Pacific and worldwide. In reality, Australia’s major  , global growth initiatives , have been driven mainly by its climate policy agenda.
Climate change remains the , second largest safety threat , in the region and since Anthony Albanese’s Labor authorities took office in June 2022, a more transformative , approach , has been taken to address the issue. Through its assorted , climate investment work, Australia aims to , reduce , carbon emissions by 43 % in 2030 and reach net zero in 2050.
Australia’s increased engagement in the Pacific in its climate action efforts has led the country to , <a href="https://www.argusmedia.com/en/news-and-insights/latest-market-news/2351128-pacific-islands-back-australia-joint-bid-to-host-cop-29″>receive the full support , of the Pacific Islands Forum ( PIF ) members of Australia’s bidding to co-host the 31st , Conference of the Parties ( COP31 ) in 2026 with PIF.
Second-largest challenge for Australia to be a companion of choice for the Pictures in security cooperation is geostrategic competitors. The geostrategic competitors between the US and China has  , intensified , in the region.
As a key ally of the US Canberra has been involved in a variety of initiatives to counteract the rise of China in the Pacific even though the great power rivalry continues to be a concern for the PIF members ( including Australia ).
China has emerged as a global powerhouse and is advancing regionally in the Indo-Pacific. China’s wedding in the Pacific has thus far largely been about economic growth.
Through its Belt and Road Initiative ( BRI), for instance, China has provided infrastructure projects in countries like Papua New Guinea ( PNG ),  , Solomon Islands , and , Vanuatu.
However, China’s energy to , establish , a bilateral security deal with Solomon Islands in 2022 has changed the entire narrative of energy relationships in the Pacific given that Australia and the US have been the PICs ‘” standard safety partners”.
The term “partner of option” in security cooperation falls under the umbrella of a standard protection partner, in which Australia tightly adheres to its foreign policy through dialogue with its Pacific neighbors and ensures that the US maintains its status as the Pacific power.
While Australia, within the course of a season,  , signed three diplomatic security agreements , with Vanuatu, Tuvalu, and Papua New Guinea to maintain its influence in the region in security assistance, China’s growing influence in the Pacific issues and concerns the concept of “partner of selection”.
In her recent interview, Sen. Penny Wong, Australia’s foreign affairs minister , stated , that:” ]w ] e are now in a position where Australia is a partner of choice, but the opportunity to be the only partner of choice has been lost and we’re in a state of permanent contest in the Pacific]with China ] —that’s the reality”.
Australia, apart from its security engagement with the PICs, also supports a free and open Indo-Pacific through engagement with key partners.
This include AUKUS, the trilateral security partnership , established , in 2021 with the US and UK in which both countries would build Australia’s nuclear-powered submarine capabilities ( conventionally armed ), including through , acquisition , of five Virginia-class nuclear-powered submarines from the US over the next three decades for$ 368 billion.
The AUKUS partnership also entails technology and information sharing among the three countries as well as , deployment , of US and UK submarines as early as 2027 to have rotational presence in Western Australia at HMAS Sterling through Submarine Rotational Force-West, a strategic move not just to help Australia build its nuclear-powered submarine fleet but also , counter , China’s growing influence in the Indo-Pacific.
As one of the members of the , Quadrilateral Security Dialogue , (” Quad” ) with the US, Japan and India, Australia’s status as a founding member of PIF ensures that humanitarian assistance, the key reason why the Quad was  , established , in 2004, is delivered to PICs, who remain vulnerable to non-traditional security threats like climate change.
Australia, along with New Zealand, Japan and South Korea also maintains the presence of NATO through , Partners in the Indo-Pacific , ( IP4 ).
Although NATO was  , established , to counter Soviet threats during the Cold War in Europe after World War II, its partnership with IP4 exists to , maintain , the international rules-based order in the Indo-Pacific.
There is this , notion , that” countries in both Europe and the Indo-Pacific count on the US to guarantee their security —a guarantee]that ] they have not had…to question for three-quarters of a century”.
However, China in the Indo-Pacific is already battling that security guarantee from the US. The US and its NATO partners see China’s emerging superpower status and its , provocative actions , in the South China Sea, particularly with the Philippines, as a threat to the liberal order.
Second, Australia sees the Pacific as a crucially important region for both its national security interests and the security interests of its allies as a US ally and as a NATO partner.
This implies that Australia seeks to prevent China from imposing coercion or attempts to establish bilateral security arrangements with PICs and to ensure that PICs remain under its control in security cooperation.
For instance, the former prime minister of Solomon Islands, Manasseh Sogavare was  , described , as the polarizing, pro-China figure in the Pacific when he , signed , the security deal with China and PNG was  , urged , early this year by Washington and Canberra to reject China’s bilateral security offer.
When responding to China’s bilateral security offer to PNG, Australia’s Prime Minister Albanese , stated:” ]W] e are a security partner of choice for]PNG], as we are for most of the countries in the Pacific”.
PNG did not take up China’s bilateral security offer, intended to help improve PNG’s internal policing, as PNG already has a similar , bilateral security arrangement , with Australia.
Geoeconomic competition is the most important factor in Australia’s choice for partner of choice in security cooperation for PICs. Both the US and China are  , key trading partners , of Australia, and the Pacific region is critical to their economic development as it houses the , trans-Pacific route, the world’s largest shipping lanes linking Asia and North America.
In 2023 alone, approximately 30 million 20-foot equivalent units ( TEU) of cargoes were transported across the trans-Pacific route.
Secondly, while China has done significant investment in infrastructure development through the , BRI in the Pacific, Australia through its Pacific Step-up , introduced , the$ 2 billion Australian Infrastructure Financing Facility for the Pacific to increase its engagement in the region, as the BRI was  , accused , of a “debt-trap” diplomacy.
Australia’s membership in the Partners in the Blue Pacific helps , support Pacific priorities , envisaged in the , 2050 Strategy for the Blue Pacific Continent, as PICs are not included in the US-led , Indo-Pacific Economic Framework , for Prosperity except Fiji.
PICs are aware of Australia’s traditionally dominant position as a key regional influencer in security cooperation. While China’s interests, apart from economic development, are also to , constrain , Taiwan’s diplomatic presence in the Pacific, PICs perceive all parties involved, including big powers as its key development partners without any geopolitical interest in security and economic cooperation.
Australia will need to work more closely with the PICs as a traditional leader to maintain its position as the partner of choice in security cooperation while maintaining the sovereignties of each individual PIC.
For instance, the Pacific Policing Initiative ( PPI), just , endorsed , by PIF leaders in their 53rd , meeting in Tonga late last month would be a good start for Australia’s investment in its effort for regional leadership in security cooperation as the PPI will be entirely funded by Australia in the next five years.
Moses Sakai ( sakaimoses@outlook .com ) is a Research Fellow at the Papua New Guinea National Research Institute and a Young Leader of the Pacific Forum. He taught at the University of Papua New Guinea from 2018 to 2023.
Major technology companies in the US have been urged by Indian Prime Minister Narendra Modi to look into India as a place to work and innovate.
A moment after attending the annual conference of Quad states, which also includes the US, Australia, and Japan, he met Directors of software companies in New York.
India has been positioning itself as a viable option to China to draw in foreign companies looking to expand their supply stores.
The nation has put a particular emphasis on semiconductor manufacturing in the last few years, but it still leaves big players like China and Taiwan far behind.
Modi’s meet with the technical officials on Monday was attended by 15 leading Executives, including Google’s Sundar Pichai, Adobe’s Shantanu Narayen, IBM’s Arvind Krishna and NVIDIA’s Jensen Huang.
Addressing the meeting, Modi said,” they may co-develop, co-design, and co-produce in India for the earth”.
India’s international department said in a statement that the roundtable meeting touched upon humankind’s use in inventions,” which have the ability to revolutionise the global market and people development”.
Modi also addressed a rally of Indian-Americans whom he called “brand ambassadors” of the country and told the crowd of 15,000 in New York that India was key to “global development, global peace, global climate action, global innovations, global supply chains”.
On the outside of the Quad conference on Saturday, Modi and US President Joe Biden met and signed numerous partnerships.
The India-US semiconductor pact – which they have described as a “watershed arrangement” – aims to establish a fabrication plant which will produce chips for national security, next-generation telecommunications and green energy applications, said a joint release.
This is India’s first such project with the US in which the country will provide chips to the US armed forces, allied militaries and Indian military.
Previous attempts at building homegrown semiconductor manufacturing industry in India have not seen desired results. But as the US aims to build resilience against China’s semiconductor industry – vital for modern technology – the deal gives a renewed fillip to India.
The Indian Express newspaper reported that the plant will focus on “three essential pillars for modern war fighting: advanced sensing, advanced communications and high voltage power electronics”.
This was Modi’s first US visit since he won his third term in June, and it came just weeks before the Democrats are contesting re-election from the Republican party.
Trump had previously stated that he would meet Modi and that he was” a fantastic man.” However, this meeting has n’t taken place because Indian diplomats have n’t been in touch with them.
The Quad leaders released a joint statement on Saturday that was primarily focused on maritime security in the Indo-Pacific region.
“We strongly oppose any destabilising or unilateral actions that seek to change the status quo by force or coercion…We seek a region where no country dominates and no country is dominated – one where all countries are free from coercion, and can exercise their agency to determine their futures,” the statement read.
According to analysts, the statement did n’t mention China, but it did say that a large portion of the message was directed at the nation. Additionally, they noticed a much stronger language-feeling.
The language in the joint statement on provocations in the South China Sea is stronger than it has ever been, despite not directly referring to China. And that’s because all four Quad states are becoming more concerned about the rising Chinese activity there, according to Michael Kugelman, director of the South Asia Institute at the Wilson Center think-tank in Washington.
The Quad partners also announced the expansion of maritime surveillance, a pilot logistics network for natural disasters and a project to combat cervical cancer.
German government to reduce coal production
An agreement was signed between the Thai government’s integrated urban climate action for low-carbon and resilient cities ( Urban-Act ) project and the German Corporation for International Cooperation GmbH ( GIZ ).
As project implementing partners in Thailand, representatives from the German Embassy in Bangkok, the Department of Public Works and Town and Country Planning ( DPT ), the Office of Transport and Traffic Policy and Planning ( OTP), the Office of Natural Resources and Environmental Policy and Planning ( Onep), and the Thai Meteorological Department ( TMD) attended the signing.
As local venture partners, representatives from the United Nations Economic and Social Commission for Asia and the Pacific and the Asia-Pacific Regional Organization for Local Government also attended the ceremony.
Thailand is extremely susceptible to climate change, according to Chamnanwit Terat, assistant continuous secretary of the Interior Ministry.
He argued that the nation needs to accelerate its efforts to achieve the Sustainable Development Goals ( SDGs ), build more resilient cities, promote sustainable living, and reduce greenhouse gas emissions to further adapt to climate change.
” Climate shift has considerably affected procedures and the well-being of the people”, he said. Therefore, all participants must work together to create industrial growth solutions that adhere to environmental principles.
He stated that the government is totally committed to supporting the initiative’s efforts to address pressing issues facing the nation and advance sustainable growth.
The Urban-Act job is a local, climate action effort with initiatives currently continued in China, India, Indonesia, the Philippines, and Thailand.
The European Federal Ministry of Economic Affairs and Climate Action’s International Climate Initiative will provide funding through December 2027. Its objective is to assist the nations in their move to low-carbon, more tenacious industrial development.
Pongrat Piromrat, DPT director-general, said the program is a vital step towards decreasing Thai places ‘ carbon pollution.
Local authorities will conduct research on how climate change has affected the places, he said, adding that the project will concentrate on Chiang Mai, Khon Kaen, and Phuket as captain places.
The experiments, he said, does form the basis for more action.
” DPT will develop rules that will help transform these places into climate resilient locations. Although our office has several laws in place to assist lower carbon emissions in urban areas, we still need to increase them, he said.
” Once we receive and process the information from the studies in the pilot cities, we will use]the data ] for city planning and development in other provinces”, he said.
Jarukan Rassiri, the GIZ Cluster Coordinator for Environment, Energy and Mobility, said the program is also being implemented in other key cities in India, China, Indonesia and the Philippines.
” Asia is a gateway of the world, and it has strong growth potential. But, the question is, how it will grow in the future”? she said. “]The response is ] with lower carbon emissions and powerful resilience”, she added.
It’s not just about having creative ideas or practices; it’s also about how different agencies can collaborate and come up with common solutions, she continued.
Germany recognized the importance of locations as well as the need for strong cooperation between government agencies, according to Johannes Kerner, Counsellor for Economic Affairs at the German Embassy in Bangkok.
” We are a proud promoter and donation for the local Urban-Act project through the International Climate Initiative”, he said.
Seven centuries seems a career in politics. Donald Trump, president, announced in 2017 that the United States may retreat from the Paris Agreement. In order to restate their political responsibility to international climate action, Canada, China, and the European Union convened an urgent appointment.
The powerful meet turned into a year-long event that took place in Wuhan, China, this week as a chance for a second Trump presidency looms large.
At the invitation-only gathering of environment ministers and senior representatives from nearly 30 nations, Australia’s Climate Change and Energy Minister Chris Bowen represented Australia.
The group gathered to progress global climate negotiations in the lead-up to the next United Nations climate conference ( COP29 ) in Baku, Azerbaijan. Stronger pollution reduction goals may send strong signals to purchase, which has been slow in Australia but not in China.
China is making notable improvement in moving from fossil fuels to clean energy. In addition to a surge in the production of low-carbon systems, including batteries and electric vehicles, analysts have observed record progress in solar and wind, which have reduced energy’s discuss in electricity generation.
All of this indicates that China’s greenhouse gas emissions does had reached a peak, which would be good for the world. Australia also needs to move quickly if it wants to become a powerhouse in solar energy.
China obviously wants to take a greater share of the global lead in the change of electricity, but it also wants to put pressure on its own businesses and industries to take action. China’s choice to host this year’s gathering, and others, reflects this goal.
Earlier this month, China hosted a five-day gathering of “like-minded developing places” in Shandong. Then there was a “BASIC” ministerial conference on climate actions with Brazil, India and South Africa next trip.
The 8th Ministerial on Climate Action was officially known as the big conference this year. In addition to boosting global cooperation, it also involved in-depth discussions on issues relating to COP29 and COP30, as well as promoting the transition to power.
UN Climate Change Executive Secretary Simon Stiell called for bolder weather action from all countries, particularly the wealthy G20, at the conference. Every country is required to submit fresh national climate plans and goals by February of next year in accordance with the Paris Agreement. As Stiell says:
Done properly, these programs are the key to stronger economic expansion, more jobs and success, much less waste and better wellbeing.
The transition to a low-carbon society requires architectural adjustments that are both socially challenging and time-consuming. However, as I’ve mentioned below, China’s efforts to develop the technologies for the trend of solar power are beginning to bear fruit.
About 40 % of China’s CO₂ emissions come from power generation, mainly fuel, but the share of renewable energy is growing.
Wind capacity expanded from 61 gigawatts ( GW ) in 2012 to 441GW in 2023, while solar capacity rose from 3.4GW in 2013 to 610GW.
Coal-fired power plants are being built also, though at a much slower rate. Hydrodropower went through many droughts in a row.
The rapid development of solar and wind is being managed by developing new storage methods. These include waters pump store, chemical store, compressed-air storage, and digital power plants. Long-distance transmission systems will help better use of biofuels.
China is even conducting climate legislation experiments, including carbon trading and offsets. Because the state wants to concentrate on fossil fuel use, a two system that has existed for almost 30 years is being redesigned.
The strategy is to remove strong fuel burning with light, coal with natural gas, and combustion turbines with electric automobiles.
In 2023, international electronic vehicle sales exceeded 13 million. With more than 7 million sold, or a third of auto sales, China has the largest private electric car market.
In contrast, China exported 1.2 million electrical vehicles in 2023. This was 80 % more than the previous month.
Because they have quite a large market share, energy vehicles are already less expensive than those with internal combustion engines in China. Local carmakers now offer roughly 50 various small, affordable electric models.
China made the announcement in April that it would start extending emissions trading to the metal sector. This business is the government’s second-largest CO₂ emission, behind power.
Emissions investing is a market-based view to controlling waste. The federal grants allows that allow a certain amount of CO2 to be released over a predetermined amount of time. These grants can be purchased, traded, or both.
China accounts for more than half of the country’s steel manufacturing. Because metal is used in renewable energy production and the manufacture of electric vehicles, the economy even supports the energy transition. Nearly 70 % of the world’s main wind turbine components and 80 % of solar panel components are produced in China.
To reduce pollutants, the government is urging economy to collaborate with universities and research institutes. It will not be quick, and it will be expensive.
China is the world’s largest hydrogen producer, but 80 % comes from fossil fuels. Green gas research and development is getting more and more money, with some companies determined to take the result. If steel-making may become powered by natural gas, it would be a key milestone.
Given the confusion surrounding the US election in November, China’s constant hands in climate politics is welcome.
China is even demonstrating what is feasible if the energy transition is transformed into a source of development option for Australia and other countries. The size of China’s rollout of solar energy is astounding, but so is the pace of development of new technologies to support renewable energy, including the efficient storage of wind and solar power to provide electricity on demand.
More than two-thirds of the world’s greenhouse gas decline may be supported by the technology also in growth, according to the International Energy Agency in 2020. China wants to dominate the market and dominate it initially. And there’s every sign it will flourish.
Xu Yi-chong is Professor of Governance and Public Policy, Griffith University
This content was republished from The Conversation under a Creative Commons license. Read the original post.
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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