ravi menon : developing the ecosystem for energy transition remarks by mr ravi menon, managing director of the monetary authority of singapore, at the adb session on catalysing energy sector decarbonisation, singapore, 5 december 2023. * * * president masa, distinguished guests, ladies and gentlemen, good morning. thank you for having me here today. the world will not reach net zero unless there is successful energy transition in asia. asia accounts for about half of global greenhouse gas emissions. coal - fired power plants account for about a third of asia's greenhouse gas emissions. this means that one out of every six tonnes of greenhouse gases emitted into the atmosphere comes from a coal plant in asia. if these coal plants are left to operate as planned, they will exhaust about twothirds of the carbon budget that we have remaining to keep the rise in global temperatures to within 1. 5 degree celsius. but these coal plants account for nearly 60 % of power generation in asia, where energy demand is expected to increase by two - and - a - half times by 2050. the economics of energy transition in asia are challenging. coal plants in asia are young, at less than 15 years old on average. they are backed by long - term power purchase agreements and policy reliefs. there are some 6. 7 million people employed across the coal value chain in asia. we need to ensure that jobs and communities are cushioned through the transition. while there is growing renewable energy investment, it is insufficient to replace fossil fuel energy and meet growing energy demand. more investment is needed in energy storage and grid infrastructure to deal with the variability of renewable energy and lower its cost. asia's energy transition can only be achieved by adopting an ecosystem approach. we need four key components : policy commitment transition pathways blended finance transition credits first, policy commitment to the energy transition, to foster investor confidence. this includes three things : carbon pricing through the use of carbon taxes or emissions cap - and - trade systems ; 1 / 3 bis - central bankers'speeches granular energy sector targets, including interim milestones ; and supportive policies for electrification in carbon - intensive sectors such as transport, industry, and buildings. second, credible pathways for energy transition customised for asia. we need standard setters like the international energy agency ( iea ) to produce pathways for the energy sector contextualised for asia. these pathways enable the development of credible, phase - out plans aligned with a 1. 5 degrees cels

utilities, and technology platforms focused on green fintech. conclusion let me end where i began. rising inequality is the major fault line in many societies. climate change is the existential challenge facing our planet. the covid - 19 pandemic and economic crisis has, in a way, helped to focus our minds on these two issues. there is a growing consciousness across the world that if we do not act now and act decisively, we will put our future at grave risk. this crisis presents us an opportunity to create a more inclusive society and a more sustainable planet. finance, technology, and fintech can be powerful enablers in this endeavour. everything we do in finance, technology, and fintech must have a larger purpose. what greater purpose can there be than making our societies more inclusive and our planet more sustainable? 10 / 10 bis central bankers'speeches