New Regional Network with Central Office in Singapore Will Support Expansion of Net Zero Finance in Asia-Pacific and Help Accelerate the Region’s Transition to a Net-Zero Economy
SINGAPORE – JUNE 8, 2022 – Today, the Glasgow Financial Alliance for Net Zero (GFANZ), a practitioner-led, global coalition of financial sector institutions working to accelerate the world’s transition to net-zero greenhouse gas emissions by 2050, announced the formation of its Asia-Pacific (APAC) Network with the opening of its first Asia-Pacific office and the creation of a regional Advisory Board to accelerate net-zero action across Asia.
Unlocking investment in low carbon and renewable energy is critical in the APAC region if the world is to limit global temperature rise. According to the United Nations-backed Race to Zero campaign, USD 13.6 trillion in investment is required this decade in Asia-Pacific to advance the global net-zero transition and avoid the worst impacts of climate change.
To accelerate these and other efforts, GFANZ is launching its APAC Network to support engagement with financial institutions and policymakers across the APAC region, incorporating feedback and ensuring its work on net zero is inclusive and applicable to all. The Network will enable mutual knowledge-sharing and open dialogue on the opportunities and challenges of net zero, to ensure a truly global green transition. To reinforce the global work and outputs of GFANZ, the APAC Network will help ensure the perspectives and expertise of firms and actors across the APAC region are reflected as well as look into adapting GFANZ’s global research and efforts to meet APAC’s unique and diverse needs.
The GFANZ APAC Network will be supported by global and regional partners. The GFANZ APAC Network Central Office in Singapore is supported by Singapore Exchange (SGX Group), Temasek and the Monetary Authority of Singapore (MAS). The Network will be led by newly appointed GFANZ Director Yuki Yasui, who has experience as the APAC lead for the United Nations Environment Programme Finance Initiative (UNEP FI). Ms. Yasui will report to the GFANZ leadership team of Mark Carney, Mike Bloomberg, Mary Schapiro, and Nigel Topping – as well as a newly formed GFANZ APAC Advisory Board.
The Advisory Board, composed of leading regional figures from climate and finance, will provide guidance and advice to the APAC Network, including strategic direction, local and regional expertise, and representation in overseeing the work of the APAC Network’s workplan and outputs. Ravi Menon, Managing Director of the MAS and chair of the Network for Greening the Financial System (NGFS), will chair the Advisory Board and will be joined by leading experts on climate finance from both private, public, and civil society sectors such as:
- Woochong Um, Managing Director General, Asia Development Bank (ADB)
- Liqun Jin, President & Chair of Board of Directors of the Asian Infrastructure Investment Bank (AIIB)
- Anna Skarbek, Chief Executive Officer, Climateworks Centre
- Dr Jongkyoo Yoon, Chairman & Chief Executive Officer, KB Financial Group
- Boon Chye Loh, Chief Executive Officer, SGX Group
- Hiro Mizuno, UN Special Envoy on Innovative Finance and Sustainable Investments
The Advisory Board – which will see more experts joining over the course of the year – will be diversified and balanced across geographies and sectors, thus ensuring that GFANZ APAC Network represents and accounts for regional economic and policy conditions. This includes engaging and supporting financial institutions, which have not yet set 2050 net-zero targets, to promote the adoption of science-based target-setting and transition planning in all contexts, in coordination with relevant alliances. It will also help to promote net-zero alliances and the net-zero commitments and ambition in local financial systems. The GFANZ APAC Network will look to develop country chapters with offices in countries across the region to support local engagement and implementation. These country chapters will be an integral part of the GFANZ APAC Network.
GFANZ will launch additional regional networks in Africa and Latin America in the coming months, with secretariat staff distributed across all major continents to reflect the global nature of GFANZ. These networks will ensure not only that the expertise and perspectives of all regions are embedded in GFANZ’s work—but also that financing the transition to net zero remains a top priority in every corner of the world. The effort to support the development of net zero aligned finance, with a focus on supporting implementation in emerging markets and developing economies, is one shared by GFANZ’s global partners UNEP FI and Principles for Responsible Investment (PRI) – and this work will be done in close coordination with them. To avert climate catastrophe, all regions will need to work together to decarbonise their economies, and the global financial system will need to help finance the transition to net zero. GFANZ will continue to work to ensure all regions of the world are well represented in its work, membership, and secretariat.
“Financial markets in the Asia Pacific region helped jump-start the growth of sustainable investment around the world. As home to fast-growing economies with enormous potential for clean energy investment, the region plays a critical role in the global effort to confront climate change. The GFANZ APAC Network and its Advisory Board will help harness leadership and innovation from around the region.” – Michael R. Bloomberg, GFANZ Co-Chair and UN Special Envoy for Climate Ambition and Solutions
“The world cannot address climate change without finance. Similarly, the global financial system cannot do its fair share without the leadership of the Asia-Pacific financial institutions. Our new APAC Network, Advisory Board and Singapore office will bring Asian finance to the heart of GFANZ to help solve this global challenge.” – Mark Carney, GFANZ Co-Chair and UN Special Envoy for Climate Action and Finance
“The net zero transition has profound implications for the structure of energy systems and for the functioning of financial markets and institutions. The launch of the APAC Network and Advisory Board marks an important milestone in ensuring GFANZ’s work reflects a truly global perspective. We look forward to partnering with countries across the region as financial institutions and governments build capacity in transition planning, in support of the successful implementation of the Paris Agreement.” – Mary Schapiro, GFANZ Vice Chair and Head of Secretariat for Task Force on Climate-related Financial Disclosures
“Asia is key to the world’s transition to net zero. Finance can be a powerful enabler to help Asia achieve an effective and inclusive transition to net zero. The setting up of the GFANZ APAC Network is thus most timely. Catalysing green finance on the scale that is necessary to address the climate crisis will require active collaboration between the financial industry and financial regulators. I look forward to growing partnership between GFANZ and NGFS, to support financial institutions in Asia chart credible transition pathways, manage their climate-related risks, and develop innovative solutions in green finance to advance Asia towards net zero.” – Ravi Menon, Managing Director, Monetary Authority of Singapore
“Without representation and consensus from financial institutions around the world, we cannot advance our goals to accelerate a global net-zero transition. I look forward to aiding our members and working with financial institutions and policymakers across Asia to take action on their commitments to net zero.” – Yuki Yasui, Regional Director for the GFANZ APAC Network
“At a time when our world is facing unprecedented challenges, it is increasingly important to strengthen our linkages across borders, deepen our resolve and resist the urge to turn inward. I am delighted to join GFANZ and contribute multilateral perspectives to explore the huge potential in net-zero transitions. We will support the climate agenda to achieve a green recovery from the pandemic and facilitate meaningful action on climate change for the benefit of billions in Asia and beyond.” – Jin Liqun, President and Chair of the Board of the Asian Infrastructure Investment Bank
“Climate change is a rapidly growing challenge that needs to be tackled across geographies, industries and sectors. Financial institutions, investors, and real economy companies in Asia-Pacific face unique challenges in addressing climate change, given the region’s complexities and varying levels of economic and social development. As host of the GFANZ APAC Network Central Office, SGX Group will work closely with the ecosystem to understand the issues and find practical solutions together.” – Loh Boon Chye, Chief Executive Officer, SGX Group
Achieving the global climate targets will not be possible without strong commitment in Asia. Temasek’s support to the Global Finance Alliance for Net Zero and the establishment of its APAC Network Central Office in Singapore is an expression of our commitment to catalyse capital for the acceleration of climate action across the financial industry and the real economy and to realise a just transition. We look forward to stepping up our involvement with GFANZ over the coming months to help drive momentum for the Net Zero agenda in Asia and globally.” – Dilhan Pillay Sandrasegara, Chief Executive Officer, Temasek
“The Asia-Pacific region has long been a cradle for innovation and the global leader in sustainable finance. If we fail to achieve net zero In the region, we would fail globally. We must harness the power of Asian financial markets to reach our shared climate goals. I look forward to catalyzing action and implementation with GFANZ.” – Hiro Mizuno, United Nations Special Envoy on Innovative Finance and Sustainable Investments
“The climate crisis must be met with a global response that considers regional, national and local realities. PRI welcomes the formation of the Asia-Pacific regional network on net zero. We look forward to supporting investors in the region to step up to the net zero challenge and deliver a just transition to a net-zero carbon economy in coordination with GFANZ and other investor networks.” – David Atkin, Chief Executive Officer, Principles for Responsible Investment
“The financial sector will need to play a critical role in enabling low carbon, climate resilient economic transformation across the Asia-Pacific region. UNEP FI looks forward to working closely with GFANZ in convening the leading financial institutions and helping them realise this transformation at the scales required.” – Eric Usher, Head, UNEP Finance Initiative
“The launch of the GFANZ APAC Network is testament to the vital role the region plays in the race to net zero. With the region forecasted to drive more than 40% of the global transition finance required for net zero, building momentum across APAC financial institutions is key to effecting change in the real economy. Bain & Company is honored to partner with the GFANZ in the region to set up and scale the GFANZ APAC Network, and jointly work alongside financial institutions to accelerate their net zero transition.” – Edmund Lin, Chairman of Southeast Asia, Bain & Company
The Glasgow Financial Alliance for Net Zero (GFANZ) is a practitioner-led, global coalition of financial sector institutions and their sector-specific alliances working together to accelerate the world’s transition to net-zero greenhouse gas emissions by 2050 and achieve the objective of the Paris Agreement to limit global warming to no more than 1.5 degrees C. GFANZ has united over 450 member firms from across the financial sector, including banks, insurers, asset owners, asset managers, financial service providers and investment consultants, spanning 45 countries and representing around 40% of global private financial assets.