AIGCC furthers work in Asian grids in enabling the decarbonisation of fossil-fuel assets; signs onto Climate Finance Principles for Grid Investment

3 December 2025 – Institutional investors understand the systemic role that grids play in enabling a holistic decarbonisation of energy systems. Asia Investor Group on Climate Change (AIGCC) also recently published research showing the vulnerability of Asia’s current electricity network and emphasising the value of improving its sustainability and resilience against physical climate risks.

Being long-term investors with a fiduciary duty to their beneficiaries, institutional investors seek confidence in their investments into green grids over time.

As the leading investor network in Asia with over 80+ investor members that collectively manage $36 trillion in assets under management (AUM), AIGCC is pleased to sign on to the Climate Finance Principles for Grid Investment, facilitated by the Green Grids Initiative and supported by the Utilities for Net Zero Alliance to accelerate the development of grid infrastructure.

Read the Principles

These Principles place considerable emphasis on having in place transparent and robust plans and monitoring systems on which investors can base their assessments. They are applied within the wider context of the project financing and national planning.

The Principles cover:

1. Sector climate contribution: Power sector targets must include a sufficiently ambitious net positive contribution to climate targets.
2. Planning consistency: Power sector plans must be internally coordinated.
3. Sector measurability and attribution: Power sector contribution must be measurable, time-bound, and reported.
4. Project climate contribution: Progress of indicators in the project should show a sufficiently ambitious net positive contribution to climate targets.
5. Project consistency: Project must be consistent with power sector plans.
6. Project measurability and attribution: Project net positive contribution to sector planning targets should be measurable, time-bound and reported.

AIGCC CEO, Rebecca Mikula-Wright, said: “Asia’s grid infrastructure requires unprecedented capital deployment to support the region’s energy transition, meet energy security needs, and ensure grid availability.

“Electricity companies in Asia stand to lose up to $6.3 billion in annual costs from climate hazards if not managed properly. To manage physical risk exposure, investors, as stewards of capital, are motivated to engage companies on their adaptation and governance strategies.

“To complement the investor approach, the Climate Finance Principles for Grid Investment provide investors with the measurable, transparent standards essential for deploying capital confidently, while ensuring grid investments deliver genuine decarbonisation outcomes.

“Commitment to a climate transition requires collaboration among investors, policymakers, and businesses to establish the enabling conditions that attract investment in stable grid infrastructure. AIGCC has started to engage policymakers in Asia on grid expansion to complement and advance sector decarbonisation plans.”