Glasgow Financial Alliance for Net Zero to set up Singapore office, boost Asian operations

The Glasgow Financial Alliance for Net Zero (GFANZ), a coalition of global financial institutions that has pledged to meet net-zero goals, said June 8 it will set up its Asia-Pacific arm with a central office in Singapore, along with the creation of a regional advisory board.

The GFANZ APAC Network Central Office in Singapore will be supported by Singapore Exchange (SGX Group), state investment firm Temasek and banking regulator the Monetary Authority of Singapore (MAS), the alliance said in its statement.

The alliance, which represents 40% of the world's private financial assets, said its Asian arm will be led by newly appointed director Yuki Yasui, who has experience as the APAC lead for the United Nations Environment Programme Finance Initiative (UNEP FI).

GFANZ's APAC advisory board will be chaired by Ravi Menon, managing director of MAS, and also includes leaders from Asia Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and exchange operator SGX Group.

The advisory board will expand to include more regional experts, engage more financial institutions -- including those that have not yet set 2050 net-zero targets -- and look to open offices in countries across the region.

GFANZ was launched in April 2021 by the UN's special envoy for climate action and finance Mark Carney and the COP26 Presidency, with more than 450 member firms across the global financial sector, representing more than $130 trillion in assets under management and advice.

Executives at the Ecosperity 2022 conference in Singapore said that the selection of the city-state as the location for GFANZ's Asian headquarters, and the appointment of the country's top regulators as its officials, underscores Singapore's push to lead Asia's climate agenda.

The participation of Temasek and SGX also indicate the scope for an advanced financial ecosystem to back climate policies, ranging from the financialization of carbon markets, trading of environmental commodities and financial support for high-cost technologies like carbon capture that are yet to be commercialized.

"Asia is where the battle against climate change will be won or lost. Energy demand in Asia is expected to double by 2030 on the back of economic growth, urbanization, and rising affluence," MAS's Menon said.

"The GFANZ Asia-Pacific Network has the potential to spearhead this effort in Asia, mobilizing banks, insurers, asset managers, and service providers in this part of the world, and facilitating alignment in a credible and inclusive transition towards net-zero," he said.

Menon said MAS, which is actively working with the financial industry to develop green finance solutions, markets and infrastructure, will work with GFANZ Asia-Pacific Network to promote a vibrant green finance ecosystem in Asia.