Commercial case essential for the green transition: Panellists

The green transition can happen only if there is a commercial case for it.

- Chin Hui Shan

This was the sentiment shared by three panelists at an event on green finance held at Singapore Management University (SMU) on Aug 26.

Dr Rajiv Lall, professorial research fellow at SMU's Singapore Green Finance Centre, said: "If you do not respect people's aspiration for well-being and growth, there will be no political support for any transition."

He said the decarbonisation narrative, led by advocacy groups in developed countries, had called for initiatives such as the shutdown of coal plants in developing regions.

"But nobody likes negative incentives," he said, adding that the conversation might have been more constructive if advocacy initiatives focused on the need to make renewable energy cheaper instead.

The panel, which also featured SMU chairman and former DBS chief executive Piyush Gupta, had highlighted how blended finance and innovative financing instruments were key to making a business case for investors to put their funds into climate solutions.

Rounding up the panel was Ms Damilola Ogunbiyi, the CEO and special representative of the UN Secretary-General for Sustainable Energy for All.