https://www.mas.gov.sg/news/speeches/2020/harnessing-the-power-of-finance-for-a-sustainable-future  1/13  14/10/2020  “Harnessing the Power of Finance for a Sustainable Future”- Keynote Speech by Mr Ravi Menon, Managing Director, MAS, at the Finan…  As we look to building a more resilient world emerging from COVID-19, we have an opportunity to also make it more sustainable. Resilience and sustainability are complementary. By improving environmental health and safeguarding biodiversity, we also strengthen public health. If resilience requires us to adopt a more decentralised way of living and working, there is opportunity to reduce the carbon footprint of daily commutes. Reducing waste and recycling resources not only enhances sustainability but also strengthens resilience. ASIA’S TRANSITION TO DEEPER SHADES OF GREEN  Asia accounts for about half of global greenhouse gas emissions. To move the needle on global emissions, Asia must move. But Asia’s journey towards a low-carbon future will be diﬀerent from that of Europe. Asia is at a diﬀerent stage of development – millions of people still do not have access to electricity, modern sanitation, and drinking water. Demand for aﬀordable energy will continue to grow strongly, especially with rapid urbanisation and modernisation. Most countries in Asia are still heavily dependent on fossil fuels for their energy needs. More than 80% of Southeast Asia’s current and planned fossil fuel generation assets exceed the carbon budget under the Paris Agreement. [1] It is not realistic to suddenly replace fossil fuels with renewables. Asia cannot move quickly to a European standard of green without curtailing its economic and social development.

And for the new challenges to be met and the new opportunities to be exploited, there is often the need for new approaches and new initiatives, at both the national and international levels. There is a view, for example, that trade integration in the region has not been adequately served by financial integration, given restrictive controls on capital mobility still being practised in selected jurisdictions. As a result there is some doubt as to whether the long term development potential of the region has been maximised and whether the rapid economic growth the region is experiencing is sustainable. There is further concern from the point of view of the maintenance of monetary and financial stability. New approaches and new initiatives are indeed necessary to promote greater financial integration in the region. I am sure there are many other areas concerning development of the region in which new approaches and new initiatives may be desirable. Being a regional financial institution of strategic importance, it is obvious that the ADB has a significant role to play. I would argue that this should be a role of increasing significance, or even a pivotal role, given the increasing interdependence among jurisdictions within the region and therefore the greater need for regional co-operation. The ADB has the right institutional framework for promoting such co-operation, and I am glad to see that under the leadership of the President there has been increasing involvement of the ADB in regional financial cooperation recently.