Asia’s Energy Transition is to be supported by DBS Bank Singapore, the energy transition requires significant funding in an attempt to have a strong ecosystem involving players from various industrial sectors. Tan Su Shan, Deputy CEO of DBS Bank Singapore, underlined the urgent global challenge of addressing climate issues.
Since 1850, the world has emitted around 2,620 gigatons of carbon. Currently, only 9 percent of the remaining Carbon Budget is left to keep global temperatures from rising beyond 1.5 degrees Celsius, as stipulated in the Paris Agreement.
“The world is making good progress. Every time I meet Indonesian conglomerates, they mention their plans to build more renewable energy”, Su Shan told the ‘Financing Energy Transition’ thematic session at the Indonesia International Sustainability Forum (ISF) 2024 in Jakarta Convention Center.
She highlighted Indonesia’s potential as a ‘green powerhouse’ with its vast mangrove resources, solar energy, and nickel reserves for electric vehicle battery production. However, Indonesia also needs green technology, which currently sees China as the most competent provider. Su Shan identified China, India, and Indonesia as the three major forces in Asia’s renewable energy sector.
DBS acknowledges Indonesia’s challenges in advancing its energy transition, especially with upcoming political changes. Within 45 days, there will be a transition of power from President Joko Widodo to the newly elected president, Prabowo Subianto. Su Shan talked about the importance of long-term policies to ensure the continuity of the energy transition, despite shifts in government. The energy transition also intersects with geopolitical issues, such as the plan to build the ASEAN Grid, which spans multiple countries. Additionally, constructing undersea cables to export energy is a technological challenge that only a few companies can handle, underscoring the need for a supportive ecosystem.
“The world must find innovative solutions − who will fund the energy transition? We are collaborating with regional and global partners to create financial instruments that can fund energy transition efforts, including the early retirement of coal-fired power plants (PLTU),” Su Shan said. “We are collaborating with Schneider and Keppel to build renewable energy”, added Su Shan.
DBS is partnering with technology companies and other stakeholders to help its clients transition toward green energy. For instance, the bank is working with technology companies developing AI to generate ESG (environment, social, and governance) reports. Additionally, DBS uses climate analytics tools to assess whether companies can achieve net-zero emissions by 2050.