Climate pragmatism is the focus at Singapore's state investor-led annual summit, emphasizing practical solutions for addressing global warming issues.

The Ecosperity conference, set to take place in Singapore in a few days, is gearing up to be a significant event in the climate finance sector. This conference aims to attract investors and encourage policy certainty, crucial elements for the growth of the sector.

Frederick Teo, the chief executive of GenZero, has urged for a clearer economic case for climate action to be presented at the upcoming conference. He emphasised the need for financiers and regulators to think about practical ways to encourage action in the midst of uncertainty, as there can often be an overwhelming inclination towards paralysis and a "wait and see" approach to capital-intensive investments.

Decarbonisation solutions are a key focus of the conference, with experts suggesting that doubling down on renewables could cut import costs and reduce reliance on unstable regimes, such as the US. Renewable power is set to be the most cost-effective way of meeting growing energy demand, driven by artificial intelligence, data centres, and other new engines of growth.

Kyung-Ah Park, Temasek's chief sustainability officer, has stated that decarbonisation solutions are necessary to avoid the worst consequences of climate change and seize opportunities from structural tailwinds. An example given by Heidi Yip, head of sustainable and transition solutions, Asia ex-Japan at BlackRock, is US thermal battery maker Antora Energy, which produces batteries that store renewable energy as heat in solid carbon at a fraction of the price of traditional lithium-ion batteries.

Yip hopes to see more commitments and visibility of plans by regional governments and regulators at the conference, citing examples like Australia, Japan, and the United Kingdom making climate financing commitments in Southeast Asia. These commitments from governments and regulators are seen as important signals for lowering the cost of capital for key developments and attracting investors to participate in the capital stack.

Financiers need to consider ways to reduce the cost of capital for climate solutions, as many governments may have competing funding priorities in the coming years. Representatives from carbon project registries Verra and Gold Standard, watchdogs ICVCM and VCMI, and project developers like South Pole will also be present at the conference.

Executives from BlackRock, HSBC, and SMBC, among other financial institutions, will attend the conference. Climate change has not been a major focus in recent elections in Canada, Australia, and Singapore, overshadowed by cost of living concerns. Despite this, the Ecosperity conference is seen as a significant opportunity to discuss practical pathways for meeting Singapore's 2030 decarbonisation goals and attracting investment in the climate finance sector.

The Ecosperity conference is expected to yield more commitments and visibility of plans by regional governments and regulators in the climate finance sector, providing a boost to the sector and encouraging investment in renewable energy and decarbonisation solutions.

Climate pragmatism is the focus at Singapore's state investor-led annual summit, emphasizing practical solutions for addressing global warming issues.