Decarbonisation is a costly affair and it is imperative to act fast to finance the transition to net-zero emission goals, said Ravi Menon, Managing Director of the Monetary Authority of Singapore.
It is important to balance decarbonisation and development, Menon said in his keynote speech at the COP27 Singapore Pavilion Finance Day on Wednesday.
"We must also balance decarbonisation and development. The world requires significant financing for sustainable development and new technologies to reach net zero by 2050 - by some estimates, USD 9.2 trillion annually. This is USD 3.5 trillion more than the annual investment today," Singaporean central bank top official said.
Further in his address, terming the climate challenge too big for governments or any one country to solve, Menon said, global effort and a whole-of-society approach are needed.
"Effective partnerships across the public, private, and people sectors will be key to mobilise the financing necessary for an effective and just transition," Menon added.
He added Singapore is well-positioned to be a carbon service and trading hub.
In conclusion, he said we have a common mission: to reduce global greenhouse gas emissions to net zero by 2050.
"But time is running out. We must act now, act fast, and act together. There has never been a greater opportunity for us to find common purpose, build solidarity, and ensure the sustainability of our planet and better lives for communities everywhere," Menon said.
The 27th session of the Conference of the Parties of the UNFCCC or COP 27 is on at Sharm El-Sheikh in Egypt from November 6 to 18 in an effort to build on previous successes and pave the way for effectively tackling global climate change.
This year's COp27 summit is even more crucial in the backdrop of several extreme weather events -- typhoons in Bangladesh, unprecedented floods in Pakistan, dry rivers in China, and droughts in Africa, among many others.
At the summit, many countries are expected to raise matters and argue matters related to climate finance in order to address carbon mitigation.
Climate finance typically refers to any financing that seeks to support mitigation and adaptation actions that will address climate change.
( With inputs from ANI )
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