Moody’s head of sustainable finance: Asia is embracing a ‘pragmatic transition’ on energy
“Virtue signalling” is giving way to national energy priorities as Asia pursues renewables, nuclear power, alternative fuels and coal.
Rahul Ghosh, head of sustainable finance at Moody's, explains that Asia's move towards sustainability is characterized by a "pragmatic transition," balancing energy security and affordability with sustainability goals. This shift is driven by geopolitical tensions, such as the Russia-Ukraine conflict and the U.S.'s strikes on Iran, causing energy price surges and supply disruptions.
Asian nations are investing in renewable energy, nuclear power, and alternative oil and gas sources, while some, like China, Japan, and South Korea, have increased coal-fired capacity since 2020. Singapore is increasing investments in low-carbon energy technologies, aiming for a 45-50 million tonnes CO2 reduction by 2035. The region is also prioritizing climate resilience and adaptation, despite some countries moving away from multilateralism and pursuing individual goals.
Despite appearances of setbacks, Ghosh believes Asia is still progressing towards a lower-carbon economic system.
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