Cathay Financial Holdings Hosts COP29 Global Climate Leaders Roundtable: Brainstorming Solutions for Climate Finance and Energy Transition

In the face of mounting climate risks and the progressing global climate action stocktake, the roundtable underscored the urgent need to decarbonize energy systems, scale up renewable energy, and advance just transitions. Cathay FHC's President, Chang-Ken Lee, emphasized: "COP29 is often referred to as the 'Finance COP,' and one of its key topics is how to effectively channel private capital into climate action, accelerating the climate transition and mitigating climate risks." He noted that collective efforts from the financial sector can translate visionary goals into actionable climate solutions, with collaboration and innovation being essential to unlocking systemic change.

According to the International Energy Agency (IEA), global energy investment is projected to exceed the unprecedented amount of USD 3 trillion in 2024. However, achieving the goals of tripling renewable energy capacity and doubling energy efficiency by 2030 will require a significant increase in investments. Anjali Viswamohanan, Director of Policy at AIGCC, discussed Asia's growing role as a climate investment hotspot, noting that fiduciary duty, regulatory changes, and client demand are key drivers, while regulatory uncertainty and the absence of a clear net-zero carbon framework remain challenges. IEA Energy and Climate Analyst Luca Lo Re introduced the G20's Clean Energy Investment Roadmap for developing countries, stressing that financial flows must increase sixfold to meet energy demands and achieve net-zero by 2050. Additionally, Sean Kidney, CEO of the Climate Bonds Initiative, emphasized that science-based green bond standards are crucial for scaling up climate finance, as standardized processes can reduce investment risks and accelerate progress. Tomo Ishikawa, Chief Regulatory Engagement Officer at MUFG, discussed the challenges of the enormous cost with the attempt to decarbonize hard-to-abate sectors and suggested using standardized financing templates and blended finance models to simplify climate investment processes.

Experts in climate action also explored the vital role of nature-based solutions in tackling climate change. Shruthi Kumar, Deputy Director of Temasek Foundation, shared insights into how bank financing was applied to a sustainable palm oil planting project in Indonesia, which mitigates deforestation risks while benefiting both banks and farmers. Kuo-Chen Lu, Deputy Director of Taiwan's Central Weather Administration, emphasized the key role of artificial intelligence in natural disaster early-warning systems for mudslides and earthquakes, highlighting technology's importance in improving climate resilience. Ming-Jer Tsai, Director of National Taiwan University's Forest Experimental Station, proposed innovative methods for quantifying biodiversity gains through biocarbon credits, providing a new science-based tool for conservation efforts.

Cathay FHC's Chief Investment Officer, Sophia Cheng, reinforced the company's commitment to advancing climate finance and energy transition. She highlighted Cathay's pivotal role in financing Taiwan's renewable energy projects and sustainability-focused financial products, with over USD 50 billion dedicated to sustainable financing as of 2023. She remarked, ""In the face of seemingly insurmountable challenges, through innovation and collaboration, we can turn the impossible into possible." In this gathering of global climate leaders, Cheng once again emphasized that through cooperation, systemic transformation can be achieved, ensuring a sustainable future for all humanity.

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