Asia remains underfunded in climate finance but philanthropic funding can help plug gaps: Ravi Menon

Straits Times

05-05-2025

Singapore's ambassador for climate action Ravi Menon speaking at the Philanthropy Asia Summit on May 5. ST PHOTO: CHONG JUN LIANG
Asia remains underfunded in climate finance but philanthropic funding can help plug gaps: Ravi Menon
SINGAPORE - Asia is where the climate change fight will be won or lost, yet the region remains severely underfunded in terms of cutting emissions and building resilience, said Singapore's ambassador for climate action Ravi Menon on May 5.
Speaking at the Philanthropy Asia Summit convened by Temasek Trust's Philanthropy Asia Alliance , Mr Menon said philanthropic funding can help to plug these gaps.
Asia accounts for half of the global emissions, he said, adding that some 90 per cent of the world's future growth in energy demand will come from Asia.
Yet, globally, less than two per cent of philanthropic giving goes towards preventing climate change. Of this, only 12 per cent goes to Asia, he said.
'Without decarbonising Asia, the world will not reach net zero,' he added. 'This is a time for philanthropy to play a larger role in driving climate action in Asia.
Public funding is willing but insufficient while private funding is ample but unwilling to commit due to high risks, said the former chief of Singapore's central bank.
Philanthropic funding can help to de-risk projects so private sector capital can be crowded in, he added.
Mr Menon noted that decarbonisation projects are often capital-intensive and require large investments.
Philanthropic capital is considered 'catalytic' as it is willing to accept lower returns, even losses, and can thus help to reduce risk borne by commercial entities.
For philanthropies, tapping funding instruments such as blended finance schemes can also maximise the impact of their contributions, compared with giving grants, Mr Menon added.
Blended finance refers to using public and philanthropic funding support to make it easier for private funding to come on board.
An example of blended finance initiative is the Financing Asia's Transition Partnership (Fast-P) launched by Singapore in 2023 to raise up to US$5 billion (S$6.45 billion) to address the financing gap in green projects in Asia. This could include the early phase-out of coal power plants and the upgrading of electricity grid infrastructure.
Fast-P involves the Monetary Authority of Singapore, multilateral development banks and philanthropic organisations, among others.
With many parts of South-east Asia lacking sufficient climate data - which hinders efforts to cut emissions or prepare for climate impacts - philanthropies can also fund data collection, enhance access and build local capacity in data analysis, said Mr Menon.
And given that the transition to a lower-carbon economy will disrupt communities and livelihoods, philanthropies can also help communities by reskilling workers and empowering communities.
'Amid the growing risks to lives and livelihoods from the climate crisis, we need philanthropy to help communities adapt and thrive,' he added.
Decarbonisation activities entails changes in long-standing economic activities, and could involve changing agricultural practices or phasing out fossil fuels in power generation.
In a separate dialogue at the event with Gates Foundation chairman Bill Gates, President Tharman Shanmugaratnam said philanthropy can also help boost innovation. For example, it can help to revolutionise food systems.
Mr Shanmugaratnam said food demand will continue to go up. But supply would be constrained given agriculture's impacts on climate change.
'We have reached the limits of our produced food… both by ordinary, small farmers as well as industrial agriculture. We reached the limits because it is too large a source of greenhouse gas emissions. We can't keep encroaching into natural forests and other natural ecosystems,' he said.
Gates Foundation chairman Bill Gates (left) and President Tharman Shanmugaratnam participating in a dialogue at the Philanthropy Asia Summit on May 5.
ST PHOTO: CHONG JUN LIANG
One example he noted is an initiative by Temasek Life Sciences Laboratory to reduce methane emissions, conserve water and increase yields in rice production, so that this staple can be grown more sustainably. Methane is a powerful greenhouse gas with greater warming potential than carbon dioxide.
The role of philanthropies in helping to narrow the funding gap for many pressing issues – such as climate change and public health – is gaining traction amid growing recognition that governmental funding alone will not be able to address these issues.
During the dialogue, Mr Gates said his Foundation is setting up an office in Singapore, to access the science and research being done here, and to partner with the philanthropic community.
'Both (Gates Foundation and Breakthrough Energy) are very excited about what's going on in Singapore,' he said.
Breakthrough Energy is an umbrella group for energy and environmental efforts founded by Mr Gates. It aims to accelerate innovation in sustainable energy and in other technologies to reduce greenhouse gas emissions.
The Economic Development Board said in a separate statement that the establishment of a Singapore presence reflects the Gates Foundation's broader commitment to working alongside countries and partners to help more people live healthy and productive lives, and to accelerate progress toward achieving the Sustainable Development Goals.
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