ASEAN states have to ‘work very closely’ to tackle region’s climate change risks, says bloc’s sec-gen

SINGAPORE: Countries in Southeast Asia – which is among the regions of the world hardest hit by climate change – have to “work very closely” to reduce the impact of the crisis, urged the Association of Southeast Asian Nations (ASEAN) Secretary-General Kao Kim Hourn. 
“The impact of climate change is global,” said Dr Kao on Monday (Oct 21).
“Our region is no exception. ASEAN has been very much affected by the impact of climate change.”
He was speaking to CNA on the sidelines of the Singapore International Energy Week (SIEW) summit, an annual gathering of professionals, policymakers and analysts to share solutions within the global energy space.
Dr Kao said Southeast Asia’s energy demand is expected to more than double by 2040 to meet the needs of its nations.
The region must move to clean energy to reduce carbon emissions that contribute to climate change, he added. 
ASEAN, on track to be the fourth-largest economy in the world, has pledged to have renewable energy make up 23 per cent of its total primary energy supply by 2025. 
“We have to look at all possible options for the region. The best of course would be an energy mix and we have to work together. Collaboration is key in order to respond.”
This comes as ASEAN economies move at different speeds in their decarbonisation journey, with renewable investments facing various barriers including financing constraints. 
“ASEAN is all about cooperation,” said Dr Kao, citing mechanisms such as the ASEAN Ministers on Energy Meeting. 
“We have to discuss and see how best we can address these kinds of issues collectively within the ASEAN region,” he added. 
“In the meantime, we have to go through layers of cooperation including bilateral arrangements, subregional cooperation, and also work with international partners, including international organisations and financial institutions.”
Southeast Asia, which is prone to rising sea levels, floods, heatwaves and droughts, faces challenges when it comes to financing climate action, said observers at the SIEW summit. 
“If you look at reactive financing, clearly there is significant financing that’s going on, after (a disaster) has taken place,” said Dr Ramesh Subramaniam, director general and group chief of the sectors group at the Asian Development Bank (ADB). 
“But the challenge that we face is that, in terms of allocating from your fiscal resources, a certain portion of the budget to be ready to face disasters, that has been very, very slow,” he told CNA.
“And if you look at insurance markets, I would say it’s almost non-existent.”
The lender last month approved a new goal to devote 50 per cent of its annual lending to climate finance by 2030.
During the interview, Dr Subramaniam touched on the establishment of a loss and damage fund at the COP28 climate summit in Dubai last year, saying that it is “a very important first step” towards helping vulnerable countries.
“We are quite optimistic that there’ll be momentum,” he said, calling for more support beyond what has been pledged by developed nations. 
“Clearly, in terms of financing, the challenge that we face is that given the scale of disasters, no amount of funding is going to be enough.”