Growing need for philanthropic support in energy transition

The role of philanthropic organisations in financing the transition away from fossil fuels towards cleaner energy sources is getting increasingly prominent, the chief executive of a global energy alliance recently told The Straits Times.

- Audrey Tan Assistant News Editor

This is important as philanthropic capital could be key to paving the way for more capital to come from the private sector.

Until now, the funders of the energy transition have been mainly the private and public sectors, such as governments or multilateral development banks, said Mr Um Woochong, CEO of the Global Energy Alliance for People and Planet (GEAPP).

At the New York Climate Week in September, there was a greater enthusiasm among participants for the alliance’s goal of roping in philanthropic support to tackle climate change, he said in an interview on the sidelines of the sustainability event.

“With our alliance, we're trying to mobilise and aggregate support from philanthropies in a collective way to contribute to the global agenda on climate.

“Last year (at New York Climate Week), I felt that people were saying that that was nice, and good for you. But this year, even though our narrative hasn’t changed, there was such an enthusiasm for it,” said Mr Um, who took on his role at GEAPP in 2024.

Mr Um, who was managing director general at the Asian Development Bank, said one possible reason for this shift was the recognition from energy sector players that the financing gap for the energy transition is large and getting bigger.