Beyond ensuring that the financial system is resilient to climate risk, we need to make the financial sector a force for good – namely, to facilitate the transition towards a lower carbon economy. If the world is to reach net zero, the financial sector needs to be at the vanguard. Many financial institutions pledged net zero goals in the lead-up to COP26 last year. This is remarkable against the backdrop of a world that was still struggling to emerge from a global pandemic that had disrupted millions of lives and livelihoods. It shows seriousness of commitment. The GFANZ is a powerful expression of that collective will to do the right thing for the planet. While net zero is a 2050 goal, the critical decade for climate action is this – 2020 to 2030. To achieve net zero by 2050, the world must decisively bend the emissions curve and achieve substantial reductions by 2030. This is not a far away problem. The time for action is now. The setting up of the GFANZ Asia-Pacific Network is timely. Asia is where the battle against climate change will be won or lost. Energy demand in Asia is expected to double by 2030 on the back of economic growth, urbanisation, and rising affluence. Some 45 million people in Southeast Asia still do not have access to electricity. Fossil fuels will continue to play an important role in meeting the energy demands of Asia, at least for the next few years.
For if we can successfully help Asia transition to net zero, it will go a long way in getting the world to net zero. Thank you very much. *****