IWD Deal Analysis: IIX’s WLB6 Orange Bond helping women’s livelihoods in Asia | FinanceAsia

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In a growing regional trend, December 2023 saw the sixth issuance of Impact Investment Exchange (IIX)’s Women’s Livelihood Bond (WLB) Series, the $100 million Women’s Livelihood Bond 6 (WLB6).

Altogether the IIX, since 2017, has raised $228 million to support women’s economic empowerment in Asia, with the overall trend in deal size on an upward trend. FinanceAsia discussed the investors, the rationale and the processes involved in order to celebrate International Women’s Day (IWD) 2024 on Friday, March 9 and the drive towards diversity, equity and inclusion (DEI) across the region. 

The closing of WLB6 marked the world’s largest sustainable debt security and was issued in compliance with the Orange Bond Principle and aims to uplift over 880,000 women and girls in the Global South.

Global law firm Clifford Chance advised Australia and New Zealand Banking Group (ANZ) and Standard Chartered Bank pro bono as placement agents.

Proceeds from WLB6 will be used to promote the growth of women-focused businesses and sustainable livelihoods across six sectors: agriculture; water and sanitation; clean energy; affordable housing; SME lending and microfinance across India, Cambodia, Indonesia, Kenya and Vietnam. 100% of the $100 million proceeds designed to advance UN’s Sustainable Development Goals (SDG) 5: gender equality and 25-30% designed to advance SDG 13 — climate action.

Robert Kraybill, chief investment officer, IIX, told FA: “The Women’s Livelihood Bond (WLB) Series is a blended finance instrument that pools capital from public-sector development finance institutions and private-sector investors. The public sector investors provide risk-tolerant “first-loss” capital in the form of subordinated notes, while the private sector investors purchase the senior bonds.”

“The WLB Series targets a range of private sector investors seeking a combination of high impact with low risk and an appropriate return. From the outset, beginning with the WLB1, the bonds have attracted both family offices and institutional investors. Initially, this was skewed towards family offices. As the WLB issuances increased, we saw increased interest from institutional investors, such that over 90% of the WLB6 was placed with institutions,” added Kraybill. 

For WLB6, there were global investors on the deal including from the US, Europe and Asia Pacific (Apac). The WLB6 bonds comply with the EU and UK securitisation regulations, making it easier for European institutional investors to participate. For example, one of the investors was Dutch pension fund APG Asset Management which invested $30 million.

Kraybill said: “Throughout building the loan portfolios for the WLBs – from sourcing and screening to due diligence – we integrate traditional credit criteria with impact criteria. We look to invest in companies meeting our credit and financial criteria while delivering meaningful positive impact.”

“We are proud that we have not experienced any payment defaults or credit losses on any of the WLB loan portfolios, demonstrating the resilience of the high-impact women-focused businesses that we work with, even in the face of challenges posed by the Covid-19 pandemic. The first two bonds in the WLB Series – WLB1 and WLB2 – have matured and been fully retired, meeting all of their obligations to bondholders,” Kraybill added. 

The IIX, which is headquartered in Singapore and has offices in Australia, Bangladesh, Brunei, India, Indonesia, the Philippines, Sri Lanka and Vietnam, also tracks the impact outcomes generated by its investment throughout the life of the bonds and reports on the targets. WLB1 and WLB2 exceeded impact projections, according to IIX.   

Complex deal

Given the number of parties involved and a myriad of regulations and compliance, the deal was not easy to put together. 

Gareth Deiner, partner at Clifford Chance, explained to FA the law firm’s role in the deal: “We’ve been involved for several years on these transactions, and this is not the first woman’s livelihood bond that the IIX team has put together.”

Singapore-based Deiner continued: “Historically, we have acted on the trustee side, but we have been advising the lead managers of the transaction for the last three offerings. It’s approximately a three to four month execution process to make sure we get the documentation agreed and the structure in place. IIX do the underlying due diligence on the borrowers, which is necessary given that the financing is raised from the international capital markets. Together with their counsel, they work on the disclosure in the offering document for the bond transaction.”

“As counsel to the lead managers, we are responsible for the underlying contractual documentation for the notes and the offering, but it’s IIX who retain control over the loan documentation with the notes proceeds end-users, and putting the loan pool together. They’re doing due diligence on the on the underlying borrowers of the deal,” he explained. 

This is backed up by IIX’s due diligence. IIX’s Kraybill explained: “The financial due diligence conducted by our credit team is similar to that of other emerging market lenders. What sets us apart is the upfront impact due diligence and ongoing impact monitoring and reporting conducted by our impact assessment team. Our team screens potential investments against rigorous eligibility criteria to ensure they contribute to positive outcomes for underserved women and gender minorities in the Global South while often empowering women as agents of climate action.”

Navigating US legal rules and dealing with investors from around the world also added to the complexity. 

Deiner said: “Dealing with a wide range of investors, including qualified institutional buyers in the US, we needed to comply with US federal securities law, including limiting the sale of the notes to qualified purchasers under the US Investment Company Act. There were also certain structural considerations raised by the EU and UK securitisation regulation.”

“From a legal perspective, it was an interesting deal because there’s a wide range of highly technical substantive law, which required the input from specialists across the Clifford Chance network. We have the expertise across the globe and do a lot of sustainable financing work,” continued Deiner. 

“Recently we’ve advised on some market-leading and groundbreaking transactions in terms of bringing sustainability finance technology to capital markets transactions,” he added.

However, this deal, in particular involved social governance goals. 

Deiner explained: “What we like about this particular transaction is that so much of the Environmental Social and Governance (ESG) agenda is about the environmental (E) angle, such as green bonds related to carbon transition and climate action. That encompasses sustainable  development goal 13 of the UN Sustainable Development Goals (SDG).”

“However, you rarely hear about sustainable finance transactions that focus on the S and the G in ESG, which IIX champions. Each of the sustainable development goals (SDG) has its own hue, its own colour. This transaction focusses on SDG 5, which is gender equality, and are referred to as Orange bonds – orange being the hue for SGD 5. In addition, IIX has developed its own framework and principles to really drive that S in the ESG,” he added.

Tracking societal impact

There is still a key issue on how to track the impact of where the money ends up.

IIX’s due diligence process includes interviews with beneficiaries and stakeholders of investees,  using its own digital impact assessment tool to incorporate input from a broad group of female beneficiaries. This verifies impact claims while giving a voice and value to the women it is assisting, according to Kraybill.

He continued: “Our selection process for projects funded through WLB6 closely aligns with the objectives of The Orange Movement. Each of the bonds in the WLB Series adheres to The Orange Bond Principles, which focuses on empowering women, girls, and gender minorities, particularly in climate action and adaptation.”

IIX looks at the potential of each project’s mission, vision, goals, and business structure, to evaluate alignment with the core values of the WLB Series and The Orange Movement. Its impact assessment team conducts due diligence to ensure selected projects meet criteria outlined by The Orange Movement and contribute to promoting gender equity and addressing climate challenges in emerging markets, according to Kraybill.

With the rise of bonds connected to ESG and DEI, the scrutiny from investors is also increasing, especially with the prevalence of greenwashing. 

Clifford Chance’s Deiner said: “The legal landscape for green bonds and sustainability-linked bonds has evolved considerably in recent years, particularly regarding due diligence. When a company issues a green bond under a green bond framework, substantial work is required to ensure the bond’s integrity. This diligence has become a critical factor in investment decisions, as investors need to be confident that the environmental credentials are genuine and not merely an instance of greenwashing.”

“One of the key parts of the Orange bond initiative is achieving transparency in the investment process and decision, and the subsequent reporting, as the proceeds are going to an issuer who is on-lending it again, to, for example, a microfinance lender. It’s a combination of seeking an investment return and a view on the credit profile. The funds have specific objectives regarding capital allocation, and the appeal of the Orange bond aspect aligns with this focus,” Deiner added. 

$10 billion goal

The IIX has an ambitious goal of mobilising $10 billion by 2030 and optimism abounds. 

Kraybill said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

“Partnerships with the Orange Bond Steering Committee organisations, like the Australian government’s Department of Foreign Affairs and Trade (DFAT), the UN Capital Development Fund (UNCDF), Nuveen, and others, are vital in this endeavour. Together, we aim to build a gender-empowered financing system, mobilise new capital, and accelerate progress toward gender equality and women’s empowerment globally,” Kraybill added.

The Orange Movement is also building “Orange Alliances” at regional and national levels to bring together gender lens investors and other stakeholders. IIX is conducting training programs to train and certify Orange Bond verification agents.

“We’re introducing an “Orange Seal” for MSMEs and other organisations, which enhances their gender, DEI, and climate bona fides. We have expanded our transaction tagging functionality to include innovative finance instruments that adhere to the Orange Bond Principles framework. Furthermore, we’re eagerly anticipating the launch of the Orange Loan Facility, alongside numerous other initiatives to further the Orange Movement’s mission,” Kraybill said. 

He said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

The next bond could potentially be much larger than WLB6’s $100 million. 

Clifford Chance’s Deiner is also optimistic: “There’s a flow of transactions that we’re going to see over the next 12 months, and this an area that people are paying more attention to. The transactions have grown considerably over the years. These transactions have involved deals from around $20 million up to the latest offering of $100 million. So, there is clearly increasing demand for these transactions each year.”

Standard Chartered declined to provide a comment for the article.


¬ Haymarket Media Limited. All rights reserved.

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East Ventures, Temasek Foundation unveil three new tracks for Indonesia’s Climate Impact Innovations Challenge 2024

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  • For the entire US$ 634k reward swimming to pilot options in Indonesia, candidates vie for a$ 634k prize pool.
  • Enhanced vitality of the company space in creating a more resilient and sustainable future

East Ventures, Temasek Foundation unveil three new tracks for Indonesia’s Climate Impact Innovations Challenge 2024

The second edition of Indonesia’s largest climate tech innovations competition, the Climate Impact Innovations Challenge ( CIIC ) 2024, has been announced by East Ventures, a pioneering and market-leading sector-agnostic venture capital firm that has supported over 300 tech companies in Southeast Asia.

To test their solutions in Indonesia to address various ecological issues and lessen the effects of climate change, the applicants will compete for a total prize pool of US$ 634,620 ( Rp10 billion ).

The” Climate Impact Innovations Challenge 2023″ has piqued our interest and had measurable effects on the weather business. As a firm believer in online ecosystems and startup ecosystems, we think climate tech innovators are key players in developing solutions that address the issues facing today and help pave the way for a resilient and sustainable future. Avina Sugiarto, Partner at East Ventures, said,” We invite all weather tech entrepreneurs in the region and partners to join us in making positive changes that benefit Indonesia and beyond.”

” We are encouraged that the company space’s Climate Impact Innovations Challenge 2023 has sparked imagination and vitality in favor of a more responsible and resilient potential. According to Lim Hock Chuan, Head, Programmes, Temasek Foundation, CIIC 2024 may assist them in embracing new opportunities and working toward scaling up their answers that will benefit the Indonesian habitat and the location.

&nbsp, &nbsp, and CIIC 2024 are the three lines that CIIC 2024 focuses on this year.

    Energy Transition: New creative concepts and solutions that encourage the deployment of solar electricity and contribute to the reduction and elimination of carbon emissions, to aid communities and industries in moving in a low-cost, all-inclusive direction.

  • Sustainable Agriculture: New creative concepts and solutions that improve food production ( plant, cultivate, harvest, process ), improve agricultural practices due to climate change, and incorporate nature-based solutions that involve sustainable and replicable business models that improve farmers ‘ livelihoods and food security while lowering soil degradation and carbon emissions.
  • Round Market: New, creative concepts and solutions designed to improve waste management procedures and turn waste into useful materials, resources, and power, thereby reducing waste sent to landfills and for burning as well as plastic pollution.

CIIC 2024 may have a number of key agendas, including:

  • Application time ( March- June 2024 )
  • Application review ( June- July 2024 )
  • Finalist announcement ( July 2024 )
  • Mentorship ( August 2024 )
  • Grand Finale ( Sept. 2024 )

The CIIC, which was founded in March 2023, has been a catalyst for innovation and the creation of more responsible options. Over 330 candidates applied for the Challenge last year, and it came to an end with the Grand Finale, which was a part of the ASEAN Business and Investment Summit 2023 side function. FollowingOil ( Renewable Energy ), Qarbotech ( Food and Agriculture ), BANIQL ( Mobility ), and Waste4Change ( Ocean ), CIIC 2023 named four winners.

Interested parties may visit the CIIC site at climateimpactinnovations.com for more information.

(L2R): The winners of Climate Impact Innovations Challenge 2023, two representatives from BANIQL, AfterOil, Lim Hock Chuan, Head, Programmes at Temasek Foundation, Avina Sugiarto, Partner at East Ventures, two reps from Qarbotech, Waste4Change.

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Why the West’s resentment of China is so misguided – Asia Times

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Over the past few years, some Western commentators have proclaimed the “decline of China.” They argue China’s economy is failing, its youth are alienated and unemployed, it abuses human rights and represses its people, and its demographic decline means that China will never rise to surpass Western power.

The subtext of this focus on China’s problems is that Western domination of the world will continue, proving the superiority of the West’s political and economic ideologies.

These eulogies for China are premature, at best.

Economists in the West don’t fully understand Western economies, let alone China’s, and Western states have numerous fundamental problems of their own.

Drumbeat of negativity

China is experiencing economic headwinds as it transitions to a new model of economic development. It is also contending with Western economic and technological sabotage.

How well China manages these forces remains to be seen.

An objective analysis of China’s economy is required, but the constant drumbeat of negativity emerging from the West makes that difficult. Some of it is a concerted propaganda campaign, financed by the United States, to undermine America’s biggest competitor. But the trend also reflects the Western world’s racial and political anxieties and its profound insecurities about its own failures and decline.

For hundreds of years, the West has used imperialism and violence to construct an international system that ensures its prosperity and prioritizes its interests. Keeping the Global South subservient to a Eurocentric world order has been critical to this strategy.

Israel’s attack on Gaza, killing tens of thousands of Palestinians – along with the associated American and British bombings of Yemen, Iraq and Syria – are contemporary manifestations of this phenomenon.

China’s rise is the first time in modern history that a non-European state beyond Western control is economically eclipsing the West. The “yellow peril” is back, and the West will now need to compromise and negotiate with a powerful, non-Western entity.

It cannot simply impose its will on the Global South, though the American campaign against China is an effort to re-establish this status quo.

To the West, this was not how it was supposed to be.

China forged its own path

According to American political scientist Francis Fukuyama, the end of the Cold War was the “end of history,” meaning that liberal democratic capitalism is the final and best form of government for all nations.

This political and economic system, embodied by the West (especially the United States), was supposedly the only path to success. The West was held up as pinnacle of achievement that the entire world should emulate.

China disproved this narrative by achieving extraordinary economic and technological developments with unprecedented speed, and it did so by following its own path. It is a major player in the world economy, but has refused to become a Western vassal state.

At the same time, the Western world has failed in many measurable and obvious ways, particularly since the 2008 financial crisis. Europe is facing economic stagnation, demographic decline and increasingly toxic politics.

Western youth are alienated and pessimistic. The West’s failure to destroy Russia’s economy with sanctions after its invasion of Ukraine is evidence of decreasing Western economic power. Its absolute moral failure in Gaza is tragically apparent.

American decline

But the most spectacular and consequential example of Western decline is the United States. On paper, the US economy is performing moderately well. In practice, under-employment and economic inequality are posing major problems.

Many Americans are angry, disillusioned and polarized. American politics are dysfunctional and blatantly corrupted by money. Even the highest judiciary has been accused of corruption.

In the next presidential election, Americans may well re-elect Donald Trump, someone who epitomizes this corruption.

The US government also continues to stir up violence and instability around the world rather than dealing with its own enormous domestic problems.

China’s achievements

Over the past 20 years, China’s transformation has been astonishing. Its modern cities feature marvels of architecture, well-constructed infrastructure, phenomenal public spaces and are clean and safe, in contrast to the crumbling infrastructure and dangerous streets of some American cities.

By purchasing-power parity, China’s GDP is currently 25% bigger than that of the US; the International Monetary Fund estimates it will be 40% larger by 2028.

China is responsible for 35% of the world’s manufacturing compared with 12% for the US. China’s economies of scale and technological advancements mean that renewable energy may become affordable to billions of people all over the world, offering viable climate action.

If China really does fail – something those Western commentators perpetually claim is imminent – it would have serious consequences for the rest of the world.

Western hostility toward China reflects the grudging realization that the West may not be the pinnacle of achievement after all. Rather than possibly learning from China’s successes, Westerners have chosen resentment borne of a sense of frustrated superiority.

The modern world is a pluralist global system. Different states will follow different paths to development and experiment with different forms of government. The West does not have all – or maybe any – solutions to the many problems the world is currently facing.

China is pursuing its own economic and social goals. These may not accord with Western models, and China may stumble as it follows its own path.

But cheering on those stumbles won’t make for a more peaceful or cooperative world, nor will it compensate for Western failures.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Multilateralism a catalyst for sustainable development – Asia Times

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The pursuit of the Sustainable Development Goals (SDGs) represents a concerted effort by the international community to confront the most pressing global challenges of our era.

These goals, which were adopted by the United Nations in 2015, articulate a shared vision for achieving a sustainable future that is equitable, inclusive, and resilient. The SDGs are comprehensive, covering a broad spectrum of issues, including poverty, health, education, climate change, and environmental protection.

As a collective framework, they offer a unique opportunity to transform our world by the year 2030, but this transformation demands more than just aspiration; it requires a robust commitment to multilateralism and international cooperation.

The SDGs were designed to be universal, taking into account the different realities, capacities, and levels of development across nations, and respecting national policies and priorities. However, the journey toward achieving these goals has been fraught with challenges.

Complex challenges

The complexity of the SDGs is evident as they encompass a broad range of interrelated issues.

Poverty eradication (SDG 1) remains a persistent challenge, with the World Bank reporting that more than 700 million people still live in extreme poverty, struggling to fulfill the most basic needs such as health, education, and access to water and sanitation​​.

The pursuit of zero hunger (SDG 2) is another critical challenge, as food insecurity and malnutrition continue to affect millions, compounded by the impacts of climate change on agriculture and food production.

The Covid-19 pandemic had a substantial impact on progress toward good health and well-being (SDG 3), disrupting global public-health achievements and impeding pathways to ensure healthy lives and well-being for all.

The repercussions extended to other SDGs, notably affecting vulnerable groups such as women, youth, and low-wage workers, particularly under SDG 10 (reduced inequalities).

Recognizing the interconnected nature of global challenges, the World Health Organization underscores the significance of strong partnerships where multilateralism is deemed essential for post-Covid recovery, aligning with the SDGs.

In addressing quality education (SDG 4), substantial progress has been made, but disparities in access and quality persist, particularly in sub-Saharan Africa and South Asia.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) has reported that about 258 million children and youth are out of school, indicating a significant gap in achieving inclusive and equitable quality education for all.

The goal of gender equality (SDG 5) is foundational to the SDGs, recognizing that empowering women and girls has a multiplier effect and accelerates progress across all development areas​​.

The challenges of climate action (SDG 13) are becoming ever more apparent. The Intergovernmental Panel on Climate Change (IPCC) warns of the dire consequences of global warming, which is projected to reach 1.5 degrees Celsius above pre-industrial levels by 2040 if current trends continue.

To mitigate climate change and its impacts, there is an urgent need for significant investments in renewable energy, sustainable infrastructure, and climate-resilient practices.

Collaboration essential

The call for multilateralism in achieving the SDGs is not merely about collaboration but about a fundamental restructuring of international cooperation. It requires a concerted effort to create a global partnership for sustainable development (SDG 17) that is predicated on shared values, visions, and goals.

The United Nations has repeatedly emphasized the need for a renewed approach to multilateralism – one that is more networked, inclusive, and effective​​​​.

Financial reform is also a critical aspect of this new multilateralism. There is a significant financing gap in developing countries, which has been exacerbated by the Covid-19 pandemic.

According to the Organization for Economic Cooperation and Development (OECD), achieving the SDGs by 2030 will require an annual investment of about US$6 trillion. Closing this gap will necessitate not only increased aid and domestic resource mobilisation but also innovative financing mechanisms that can leverage private capital​​.

The digital divide presents another profound challenge in the pursuit of the SDGs. As the International Telecommunication Union (ITU) reports, despite growing Internet penetration, nearly half the world’s population remains offline.

Addressing this divide is crucial for ensuring access to information and knowledge, as well as for the full participation in the digital economy, which can be a lever for development and a means of achieving the SDGs​​.

In conclusion, the path toward 2030 is complex. Achieving the SDGs requires persistent efforts, innovative solutions, and a renewed commitment to multilateralism.

The world needs to bridge the gap between current realities and the sustainable future we aspire to create. This calls for a paradigm shift in the way nations cooperate, finance development, and embrace technology.

It is only through such transformative changes that the international community can hope to fulfill the ambitious agenda set forth by the SDGs and ensure that no one is left behind.

The vision for a sustainable future is within reach, but it mandates that all stakeholders work together in an unprecedented alliance of shared responsibilities and coordinated action.

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Singapore more than halfway to its 2030 solar power deployment target: Grace Fu

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SINGAPORE: Singapore is more than halfway to its solar power deployment target of at least 2,000 megawatt-peak by 2030, said Minister for Sustainability and the Environment Grace Fu on Wednesday (Jan 10).

The country has doubled its solar power deployment since 2021 to over 1,000 megawatt-peak currently, she added.

The minister gave the updated figures in parliament in response to questions on Singapore’s progress in transitioning towards renewable energy. 

During the UN Climate Change Conference 2023 (COP28), Singapore co-facilitated negotiations on mitigation and the first global stocktake that contributed to the successful adoption of the UAE Consensus, which calls on countries to transition away from fossil fuels, said Ms Fu.  

The UAE Consensus also calls on countries to triple renewable energy and double energy efficiency globally by 2030. 

At the conference, Singapore signed the Global Renewables and Energy Efficiency pledge. 

“Singapore supports the UAE Consensus. As part of our long-term low-emissions development strategy, Singapore has committed to achieving net zero emissions by 2050, despite being a small, alternative energy disadvantaged city-state with many natural limitations on our climate action measures,” said the minister. 

The country has been accelerating its energy transition, with solar energy as one of its key pushes. 

Solar energy is one of the four “switches” that Singapore is deploying to achieve its net-zero target by 2050. The other three are natural gas, regional power grids and low-carbon alternatives. 

Solar energy will eventually allow Singapore to meet about 10 per cent of its projected electricity demand in 2050, the Energy Market Authority (EMA) said in November last year. 

The country is on track to meet the 1,500 megawatt-peak goal of solar deployment by 2025. 

According to EMA’s Singapore Energy Statistics 2023 report, the private sector has been the driving force behind the growth in solar deployment, accounting for 63.5 per cent of the total installed capacity.

Apart from solar energy, Singapore is working towards importing low-carbon electricity from the region. 

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East Ventures consistently races in the perfect storm: 2023 recap & 2024 outlook

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90% of growth-stage startups: 30% on path to profitability, 60% profitable & 10% adapting
Anticipate SEA digital economy is well-positioned to excel in the next economic recovery cycle

The tech industry weathered an intense “perfect storm” of crises these past two years. The global economy is in a complex state characterised by uncertainty, making caution…Continue Reading

COP28 pleasantly defied all expectations

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Despite facing substantial criticism for its selection of the United Arab Emirates as host, the COP28 climate conference, which concluded last week, marked a significant milestone in global climate discussions.

While the conference was not without its shortcomings, it proved to be a crucial forum for advancing the dialogue on climate action, particularly in the transition away from fossil fuels.

Held as the world’s attention was focused on the ongoing war in Gaza, the COP28 climate conference achieved notable progress contrary to initial skepticism. Concerns about the appropriateness of holding such a conference in an oil-rich nation like the UAE were widespread.

However, the outcome of the conference suggests these concerns were unfounded. As expected, the conference’s duration, which included an additional day of negotiations, did not leave all participants happy, reflecting the varied expectations and viewpoints of the participating parties.

Yet, the very existence of these debates is a testament to the conference’s success. By fostering discussions on critical issues such as alternative energy, fossil fuel dependence, climate change, and sustainable practices for future generations, COP28 proved to be more than a ceremonial gathering; it became a catalyst for tangible actions.

This momentum was evidenced in a letter of support published by global leaders and activists supporting the conference leadership’s efforts to produce results. By the end of the conference, several substantial agreements were reached.

The conference’s outcomes were significant, marked by ground-breaking commitments from some of the world’s largest national oil companies. A notable step was the adoption of the Oil and Gas Decarbonization Charter.

This voluntary agreement, led by industry giants including Saudi Aramco and Brazil’s Petrobras, pledges to stop routine flaring of excess gas by 2030 and aims to eliminate almost all methane leaks.

Considering that these companies account for more than half of the global production and have historically faced less pressure to decarbonize than their publicly traded counterparts, this commitment marks a significant shift in the industry’s approach to environmental responsibility.

Furthermore, COP28 saw an ambitious commitment to drastically increase the world’s renewable energy generation capacity. The agreement to triple this capacity to at least 11,000 gigawatts by 2030 is a testament to the global community’s dedication to a sustainable future.

While the implementation of these milestones may not be as swift as some advocates would prefer, they represent crucial steps forward in the complex, global effort to address climate change. These commitments, set against the backdrop of a conference hosted by a nation deeply embedded in the fossil fuel industry, illustrate a significant shift in the dialogue and action on climate change.

The UAE played an indispensable role as both a regional and global mediator during COP28. A pivotal moment was the final agreement, which seemed unattainable until the UAE’s diplomatic intervention.

In the end, the influence of key figures, such as Sultan Al-Jaber, as both President-designate of COP28 and the chief of ANDOC, who seemed intent on not letting the conference end without agreement, cannot be understated in this achievement.

This agreement, particularly the inclusion of language addressing fossil fuels – a topic met with resistance, notably from oil-producing countries and OPEC ministers – was a testament to the UAE’s unique position to bridge divides.

This outcome likely would not have been possible without the UAE’s hosting and its diplomatic finesse, suggesting the strategic importance of location in facilitating such landmark agreements.

When comparing COP28 to its predecessors, it’s clear that each conference has its unique challenges and triumphs. However, COP28 stands out for turning contentious debates into productive dialogues, and for not only bringing in oil-producing countries into the process but also putting them in the lead. 

With the next conference set to take place in Baku, Azerbaijan, another nation with deep ties to the oil industry, the precedent set by the UAE becomes increasingly relevant. Hosting climate conferences in countries heavily invested in fossil fuels can be seen not as a contradiction but as a strategic approach to engaging all critical stakeholders.

COP28, under the stewardship of the UAE, has demonstrated that effective climate dialogue requires the involvement of all parties, including those deeply rooted in traditional energy sectors.

By hosting the conference, the UAE has not only facilitated important agreements but also set a precedent for future conferences in similar nations. The path to comprehensive climate action is complex, but COP28 has shown that progress is only possible when discussions are inclusive and strategically positioned.

Arnon Bersson is a researcher in the fields of Middle East energy security and geopolitics with a focus on the Arab Gulf States. He is a contributor to the Israel and the Arab Gulf program at the Abba Eben Institute.

Dr Yossi Mann is a Senior Lecturer at the Department of Middle East at Bar Ilan University and the Lauder School of Government at Reichman University. He has published many research papers on the oil market and the Arab Gulf. He is also the head of Israel and the Arab Gulf Program at the Abba Eban Institute.

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Thailand boosts climate ambitions post-COP28

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PUBLISHED : 21 Dec 2023 at 04:00

Thailand has promised to increase efforts to reduce greenhouse emissions to mitigate the impacts of climate change following the 2023 United Nations Climate Change Conference (COP28) recently held in Dubai, the United Arab Emirates.

Speaking yesterday at a COP28 debriefing event, Phirun Saiyasitpanich, the chief of the Department of Climate Change and Environment, said that Thailand would change its carbon emissions target from 30% to 40% under a second version of the Nationally Determined Contributions (NDC), a climate action plan.

He said Thailand had aimed to reduce up to 30% of carbon emissions under the first NDC (2021-2030), but through a second NDC, it will seek to reduce carbon emissions by 40%.

“We need to take a serious study based on social, environmental and economic impacts,” he said, adding that the new NDC will be completed by next year.

He said Thailand will continue its vigorous efforts to meet the long-term goal of carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065.

Mr Phirun said that Thailand can do more if the country receives foreign financial support.

He further said that the country’s first-ever climate change bill will facilitate the country’s efforts to achieve its targets through carbon pricing to limit greenhouse gas emissions.

The bill is expected to be submitted for parliament’s reading in the first quarter of next year.

He said COP28 had approved a Global Stocktake (GST) mechanism to monitor and report the actions taken by global communities to fight climate change.

The GST will also monitor how participating countries participate in limiting the rise of the world’s temperatures.

Mr Phirun added that the COP28 established a Loss and Damage Fund with an initial US$792 million budget to help vulnerable countries.

Environment Minister Pol Gen Patcharawat Wongsuwan also told the debriefing event that Thailand has affirmed its efforts to tackle climate change by reducing greenhouse gas emissions in all economic sectors.

He said Thailand would do this by increasing its adaptation capacity and empowering its efforts to access financial mechanisms to achieve carbon neutrality targets, including promoting more public awareness on the issue.

Also at the event, Ernst Reichel, German ambassador to Thailand, said he appreciated Thailand’s efforts to deal with the climate change problems.

Mr Reichel said that Germany and Thailand are bilateral climate change partners, adding that his country will continue supporting Thailand’s transition to a green society.

COP28 was held from Nov 30 to Dec 12 and it is the world’s largest international climate conference so far.

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Climate and conflict a toxic geopolitical mix in Syria

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As the COP28 climate conference wrapped up in the United Arab Emirates last week, international observers were focused on the outcome of the talks, with good reason. The fate of humanity hangs in the balance.

But just off stage, regional analysts were absorbed in a related issue that will hinder efforts to implement any plan to save the planet. Call it the geopolitics of climate action, and Syria was exhibit A.

With Syrian President Bashar Al Assad absent from the proceedings, Prime Minister Hussein Arnous was tasked to lead the delegation in Dubai. Syrian officials underscored their primary focus was on securing funding for climate adaptation in the war-torn country, a concern other conflict-ridden states share.

While it’s imperative to address Syria’s environmental challenges, it’s crucial to consider them in the wider context. Channeling climate funds to a regime that has exacerbated old environmental woes while creating new ones will undermine efforts to hold those responsible to account. Worse, it creates an opportunity for climate funds to be misused.

The regime’s extensively documented corruption and manipulation of aid and development funding pose a significant risk to mitigation efforts. Any climate funding allocated to Syria must come with assurances that the money won’t be redirected.

For more than 12 agonizing years, the Syrian conflict has inflicted brutal violence, economic turmoil, and widespread suffering. Concurrently, recent years have brought a surge in extreme weather events in Syria – scorching temperatures, devastating wildfires, relentless droughts, and ceaseless sandstorms.

These escalating calamities, both in frequency and ferocity, have heightened Syria’s vulnerability to the impacts of climate change. Ranked 146 out of 181 countries on the Notre Dame Global Adaptation Initiative index, Syria stands among the countries most severely affected by the climate crisis. This ranking underscores Syria’s acute vulnerability and limited resilience against the impacts of severe weather.

However, these dire circumstances must not eclipse the accountability of the Syrian regime in reaching this critical juncture. For decades, the regime’s policies directly aggravated a range of environmental challenges, including water scarcity, soil degradation, and air pollution.

The situation was further deteriorated following the peaceful uprising in 2011. A November 2023 report by former International Criminal Court judge Howard Morrison echoed these concerns, placing blame on the Assad regime for Syria’s extensive environmental devastation.

Syrian President Bashar al-Assad has committed various environmental crimes while waging war. Photo: SANA

For instance, relentless bombing campaigns and the regime’s repeated use of chemical weapons have added to the ecological destruction. Today, cities remain buried under hazardous rubble that poses significant environmental and health risks.

Morrison’s report, which was released in the run-up to COP28, also underscores Assad’s targeting of the oil industry. Intentional strikes have created large oil fires and spills that ravaged cultivated land and triggered health crises, notably increased respiratory issues among affected populations.

The report also delineates how Assad’s war tactics have decimated clean drinking water supplies and polluted groundwater sources. The ravages of war have also rapidly diminished Syria’s forests, increasing flooding risks and contributing to a steep decline in biodiversity.

Extending climate financing to the Syrian regime would not only undermine efforts to hold Assad accountable but also risk yielding minimal impact.

Syria is not alone in this climate contradiction. Other countries in dire need of climate adaptation and mitigation funding – Sudan, for instance – are also embroiled in war. Indeed, climate-related challenges, like water shortages and soil degradation, are often contributing factors to conflict.

Still, Syria’s funding track record is particularly egregious. The regime has been accused of selectively directing aid to loyalist areas, manipulating exchange rates for aid transfers, and compromising procurement procedures.

Furthermore, the regime’s constraints on the operational freedom of international agencies impede independent needs assessment and monitoring, leaving these bodies heavily reliant on data provided by regime-affiliated entities. 

Even if funders could look beyond past transgressions, structural corruption within Syrian state institutions will complicate climate financing. Entrenched corruption not only undermines the effectiveness of climate financing but also detracts from essential reforms needed to address Syria’s governance challenges.

The heightened focus on conflict and climate at this year’s COP summit, while sorely needed, will only yield results if the entities receiving support are properly vetted. Climate-related financing, like any funding directed to regime-held areas, must include assurances that mitigate corruption risks and ensure climate action without exacerbating Syria’s existing problems.

Given the technical and political challenges of coordinating with the Syrian regime, climate funding to Syria should target societal and civil society structures at the local level. These entities possess the skills and genuine interest in improving conditions in their areas.

Engaging directly with the Syrian regime, on the other hand, should be avoided whenever possible. A blank check from the international community would enable Assad to exploit yet another critical cause to secure his own political survival. 

We’ve already seen what Assad can do with the slightest opening of support. But this time, the repercussions of engagement have planetary consequences.

Dr Haid Haid is a Syrian columnist and a consulting associate fellow of Chatham House’s Middle East and North Africa program. X: @HaidHaid22

Republished with the kind permission of Syndication Bureau, which holds copyright.

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Japan, ASEAN to boost security ties with eye on China

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With Malaysia, Japanese Prime Minister Fumio Kishida said on Saturday that he had agreed with counterpart Anwar Ibrahim to deepen strategic ties and provide 400 million yen (US$2.8 million) for “warning and surveillance” equipment. Kishida said that with the world “at a historical turning point, Japan places great importance onContinue Reading