resilient financial sector ; 1 / 8 bis - central bankers'speeches credible transition plans ; and green and transition solutions and markets. these are in turn supported by two key enablers : green fintech – tech solutions to help solve problems in sustainable finance. skills & capabilities – pipeline of talent and r & d capabilities in sustainable finance. finz is a platform to galvanise collective action across the financial ecosystem to mobilise the capital that is necessary for asia's transition. it calls for extensive collaboration and innovation. one priority area where we are pushing the boundaries of collaboration and innovation is in replacing coal - fired power plants in asia with clean energy sources. why is this important? the world will not get to net - zero by 2050 if we do not phase out coal plants in asia. asia accounts for 50 % of global greenhouse gas emissions, of which a third is from coal - fired power plants. in other words, one out of every six tonnes of greenhouse gases emitted into the atmosphere comes from a coal plant in asia. it is not a simple matter of not building any more new coal plants. asia's existing coal - fired power plants, if left to run as planned, will exhaust about two - thirds of the carbon budget remaining to keep global temperatures below 1. 5 degrees celsius. they need to be phased out. the economics of phasing out coal in asia are challenging. first, coal accounts for nearly 60 % of power generation in asia – and energy demand in asia is expected to more than double by 2050, to power economic development, population growth, and rapid urbanisation. second, the so - called " coal economy " is a key source of employment. the international energy agency estimates that more than 6. 7 million people in asia are employed across the coal value chain. third, the coal plants in asia are young – they are, on average, less than 15 years old. many of them benefit also from long - term purchase agreements or policy reliefs that will allow them to operate long after they become unprofitable. so, this is a big problem. but it is also a problem we cannot avoid solving if we want to forestall catastrophic climate change. this is why mas has been working with financial institutions and a broader set of ecosystem players to support the managed phase - out of coal - fired power plants in asia. 2 / 8 bis - central bankers'speeches to achieve an effective and just transition out of coal -

ravi menon : getting transition finance right speech by mr ravi menon, managing director of the monetary authority of singapore, at the cop28 singapore pavilion finance day, singapore, 3 december 2023. * * * good morning, ladies and gentlemen. welcome to the singapore pavilion. the theme for today and tomorrow is financing the net zero transition. let me start with three uncomfortable facts. first, climate change is already happening. according to the world meteorological organisation, half of the planet has seen a rise in floods, and one third has seen a surge in drought events. storms, floods, wildfires, and heat waves are increasing in intensity and frequency across the world. climate scientists warn that such extreme weather events are just the beginning. second, global greenhouse gas emissions are rising, not falling. according to the latest ipcc report, we need to cut emissions by 43 % by 2030, to keep average global temperatures from rising above the 1. 5 degrees celsius target. this is unlikely to be achieved. the average global temperature is already 1. 1 degrees celsius above preindustrial levels. in fact, this year, it was above 1. 5 degrees celsius in almost one out of four days. third, financial flows into climate action are still sorely inadequate. according to the recent un global stocktake, annual global climate finance flows have increased and crossed us $ 800b. but this is only about 30 % of the us $ 2. 5 trillion needed each year until 2030 to meet the paris agreement goals. we need to act fast, and we need to act together. to reach net zero by 2050, we need economy - wide transition strategies, and transition finance to support it. effective transition is about greening the entire economy not just growing the green economy. investing in green technologies and renewable energy is important – but they make up less than 8 % of the global economy. to get to net zero, we must progressively decarbonise all sectors of the economy. the world needs not just green finance for solar panels and wind farms. it needs transition finance – to provide the funding support for businesses and sectors that are not so green, to adopt cleaner technologies, increase energy efficiency, and become greener over time. singapore's blueprint to mobilise capital for asia's transition is the finance for net zero action plan, or finz for short. it comprises of four strategic outcomes : good data, definitions and disclosure ; a climate