[CDx Launch Session Summary] Transition Finance and Corporate Decarbonization: A Financier’s Perspective

The plenary session among finance leaders in the industry focused on the challenges and opportunities in financing the transition from high-emission to low-emission industries, particularly in Southeast Asia. Jason Lee of CIMB Thai Bank PCL discussed the complexities of responsible decarbonization, emphasizing that transition finance requires a balance between ambition and practicality. He pointed out the challenge of moving from “brown” to “green” industries and the importance of creating sustainable financial solutions for high-emission sectors.

Michael Rattinger from the Asian Development Bank stressed the need for supportive policies and blended finance to bridge funding gaps, especially in emerging markets. Melissa Brown from Transition Zero highlighted the catalytic role of landmark projects in creating momentum, setting standards, and attracting further investment. Jack Kneeland from Delphos International discussed the importance of practical solutions, such as energy-as-a-service models, for SMEs to meet sustainability goals. The panel agreed on the importance of standardization, with Robert Eason pointing out the need for internationally recognized systems like ISO 50001 to ensure credibility and consistency in transition finance.

The session also emphasized the importance of human capital development to sustain long-term decarbonization efforts. Panelists highlighted that training and upskilling workers in various sectors are critical to achieving decarbonization goals.

Key Takeaways

• Why Transition Finance? Moving from high-emission to low-emission industries requires financing that balances risk and reward while ensuring long-term sustainability.

• Policy and Partnerships: Effective policymaking and collaborations between governments and private sectors are essential for overcoming competitive pressures and supporting transition finance.

• Practical Solutions for SMEs: Energy-as-a-service models and corporate solar rooftops are scalable solutions that help SMEs meet sustainability goals and adapt to supply chain pressures.

• Standardization: Adopting standardized measurement systems like ISO 50001 is crucial to ensure credibility and consistency in transition finance, enabling better market acceptance and investor confidence.

• Human Capital: Developing the necessary skills across various sectors is vital for sustaining decarbonization efforts and ensuring a workforce ready for the low-carbon economy.