##s have to make up 70 - 85 % of electricity production by 2050. it was only 23 % in 2015. this scenario is not far - fetched. technological advances and increases in production capacity have dramatically reduced the cost of renewable energy sources like wind and solar. if r & d on long duration energy storage technologies is successful, it will solve the problem 5 / 7 bis central bankers'speeches of intermittency that currently hinders the scope for renewable energy to supply electricity round the clock. changes in technology that make renewables economically viable could potentially leave many traditional energy assets stranded – and this has serious implications for investors. changes in government policy such as higher carbon taxes will also have profound investment implications by altering the structure of industries and businesses. this is not something happening far from home. a study by the carbon tracker initiative estimates that as much as us $ 60 billion of coal assets across southeast asia can no longer yield the expected economic return in the next decade due to tighter environmental policies and competition from cheaper renewable energy. conversely, as climate change mitigation efforts intensify globally, environmentally responsible companies can be expected to outperform their benchmarks. besides technological advances and policy changes, growing consumer awareness of environmental issues will also affect companies ’ bottom lines and thereby the risk - return calculations of investors in these companies. finally, as i mentioned earlier, beyond the cold calculation of climate - related risks and returns, many investors want to invest in a way that contributes to leaving behind for future generations a planet that is habitable, green, and pleasant. sustainable investing is becoming a live issue in asia. the story of asia ’ s huge infrastructure needs is well - known. the asian development bank has estimated that developing asia needs to spend us $ 1. 5 trillion annually on infrastructure up to 2030. what is less well known is that climate mitigation and adaptation costs will add another us $ 200 billion to the region ’ s annual investment needs. this is a significant load. it will require a radical change in the way public sector policies, private sector financing, and investment decisions are made. ensuring sustainability is very much a part of singapore's ethos. making the best use of limited resources has, for a long time, been a key part of our nation - building process. we must now make our financial sector, asset markets, and investment landscape conducive to sustainability. mas is working on a comprehensive, long - term strategy to make sustainable finance a defining

been good. singapore is now asean ’ s largest green finance market, accounting for close to 50 % of cumulative asean green bond and loan issuances. notably, sustainable financing and investment flows have held up well through the first half of this year, despite the pandemic and broad - based economic weakness. singapore is also steadily developing solutions such as insurance linked securities to address climate risks. mas ’ insurance linked securities grant scheme has seen strong take - up since its launch in 2018. within two years, we have seen nine catastrophe bond issuances in singapore. this includes the first asian sovereign and catastrophe bond covering earthquake and typhoon risks in the philippines. the strong expansion of wealth in asia will provide a boost to sustainable investments. personal wealth in asia excluding japan has seen an eight - fold increase over the past two decades. despite the economic disruption due to covid - 19, asia is projected to have the strongest wealth growth in the world over the next 5 years. this wealth is increasingly being allocated to esg causes and investments. https : / / www. mas. gov. sg / news / speeches / 2020 / harnessing - the - power - of - finance - for - a - sustainable - future 8 / 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 … a study by ubs estimates that close to 40 % of family [UNK] plan to allocate most of their portfolios sustainably in five years ’ time. this trend will be bolstered with the transfer of wealth to the millennial generation. an estimated us $ 15 trillion is expected to change hands to the next generation by 2030. several studies suggest that millennials desire to invest in companies with good esg track records. according to a survey by morgan stanley, 90 % of millennial high net worth investors want to tailor their investments to their personal values. as a leading wealth management hub in asia, singapore can play a strong role in wealth planning solutions that support sustainable development in asia. mas launched last year a green investments programme under which we will place us $ 2 billion of our funds with asset managers with a strong green focus. the aim is to grow the pool of asset managers that are committed to deepen green finance activities and capabilities in singapore. we have short - listed several asset managers with a view to appointing the successful applicants early next year. singapore has also begun anchoring