At the Unlocking Capital for Sustainability conference, ASEAN leaders sounded the alarm on the urgent need for regional cooperation to bridge a staggering US$1.5 trillion green financing gap and counter rising geopolitical fragmentation threatening climate goals. With Southeast Asia’s energy demand projected to surge 60% by 2040, Malaysian Deputy Prime Minister Dato’ Sri Haji Fadillah bin Haji Yusof called for accelerated energy integration and policy alignment to attract private investment. “Sustainable finance isn’t just an option—it’s the strategic enabler for our future,” he declared at the Securities Commission Malaysia summit, attended by 240 policymakers and financiers.
The conference revealed stark challenges: while ASEAN develops its Mitigation, Adaptation, Resilience and Sustainable Finance (MARS) Framework to guide climate investments, adaptation projects struggle with profitability. “Blended finance is essential,” stressed Securities Commission Malaysia chairman Dato’ Mohammad Faiz Azmi, noting that only 10% of global climate funds currently reach adaptation efforts. Malaysia is pioneering solutions like the ASEAN Common Carbon Framework to create a transparent regional carbon market—a potential game-changer for monetizing emissions reductions.
Geopolitical Headwinds Meet Green Opportunities
As trade tensions and supply chain disruptions divert capital from clean energy, Dr. Sugumari Shanmugam of Malaysia’s Trade Ministry warned that ASEAN’s uneven development demands stronger governance to attract investors. The forum spotlighted innovative responses, from AmBank Group’s sustainability-linked loans to UNEP FI’s push for standardized climate disclosures. “Multilateralism is our lifeline,” said Eco-Business CEO Jessica Cheam, announcing the summit’s expansion to Manila (28 August) and Bangkok (30 September).
With the 2030 SDG deadline looming, the message was clear: ASEAN’s US$3.6 trillion economy must transform competition into collaboration—or risk being outpaced by the climate crisis.
For details on upcoming summits: Unlocking Capital for Sustainability
Supported by: UNEP FI, Capital Markets Malaysia, AmBank Group
Key Takeaways:
1️⃣ US$1.5 trillion gap in ASEAN’s net-zero financing requires urgent private-sector mobilization
2️⃣ MARS Framework to prioritize adaptation projects through blended finance models
3️⃣ ASEAN Carbon Market initiative aims to unify regional emissions trading by 2026
4️⃣ Geopolitical fragmentation identified as top risk to green energy supply chains
5️⃣ Manila summit (28 Aug) to focus on Philippine climate resilience strategies
“Sustainability is no longer our ambition—it’s our license to operate.”
– Amanah Aboobucker, AmBank Group CSO
