Asian Investors Name the Policy Priorities That Will Direct Billions into Climate Solutions

The new data is being released as policymakers head to Baku, Azerbaijan for the UN Climate Change Conference Baku (COP29).

Download a summary of the data

More than half of these 52 respondents have asked for:

• Legislation to mandate International Sustainability Standards Board (ISSB)-aligned climate-risk reporting as well as develop robust climate taxonomies. (56%, 29 investors)
• More guidance setting 1.5°C aligned sector pathways and plans to align their portfolios with Paris Agreement goals. (52%, 27 investors)
• More clearly defined public-private financing mechanisms, to mobilise private capital into climate adaptation and resilience projects. (50%, 26 investors)

Greater public funding to support investment into new climate technologies (50%, 26 investors). Investors have identified key policy barriers to climate action and further investment, where:

• 42% of investors said that policy or regulatory uncertainty is a barrier to climate action.
• 29% of investors said that the lack of government incentives is a barrier to climate action.

Investors’ ask to policymakers to accelerate innovation and deployment of climate technologies is in line with their increasing intention behind committing significant capital to investing in climate solutions and transition finance in emerging markets and developing economies (EMDEs).

• Investors do have an appetite to support Asian governments’ transition plans, with interest in increasing investment into energy storage (65%), renewable energy generation (63%), and renewable energy transmission (58%).

Asian markets are also preparing for governments around the world to legislate mandatory climate reporting:

• 86% of investor respondents now undertake climate-related disclosure in line with international standards such as the International Sustainability Standards Board (ISSB) Climate-related Disclosures.

Anjali Viswamohanan, Director of Policy, AIGCC said:

“Investors and governments alike want to see significant capital expenditure on climate solutions in the region. The ongoing exponential decline in costs that support building renewable energy sources like solar, wind, and batteries would provide multi-trillion-dollar investment opportunities that investors are looking for.

“COP29 presents a critical opportunity to accelerate climate action and unlock further investment potential. We urge policymakers to create a supportive regulatory environment that encourages sustainable finance and removes barriers to capital flows. By doing so, we can mobilise the necessary resources to drive a just and equitable transition to a low-carbon future.”

About the Research

This analysis is an extract from The Asia Investor Group on Climate Change’s flagship research project “The State of Net Zero Investment in Asia”, which will be released in full in Q1 2025. It will have deeper and more granular analysis of investment practices in the region, including management of physical risk, best practices on corporate and political engagement, fossil fuels, deforestation, and involvement in target-setting initiatives. The research design, data collection and analysis was done independently by AIGCC.