Tashkent, Uzbekistan (UzDaily.com) — A panel discussion titled "Mobilizing Private Capital: Investments in Climate and Energy Transition" took place at the ninth annual meeting of the Asian Infrastructure Investment Bank (AIIB), focusing on key strategies to attract private capital to support climate and energy initiatives in developing countries.

Speakers included Chin Hwa Lo, CEO of Keppel Ltd; Jose Isidro (Lito) N. Camacho, Chairman of Sun Life of Canada (Philippines); Dongik Lee, Senior Advisor to the AIIB President’s Office; Gregory Liu, CEO of the AIIB’s Financial Institutions and Client Department; Neda Vakilian, Partner and Global Head of Investor Solutions at Actis; and Kyung Wook Hur, Chairman of the Board of the Korean Center for International Finance.

During the session, participants emphasized that developing markets are at a critical juncture where the need for investments in climate and energy transition is becoming increasingly urgent. These regions are particularly vulnerable to the adverse effects of climate change, such as extreme weather events, rising sea levels, and disruptions to agriculture and water supply. Significant investments in sustainable energy are expected to mitigate these risks and support long-term economic stability.

Investments in renewable energy in developing markets present significant economic opportunities, fostering job creation, technological innovation, and enhanced energy security. Developing local renewable energy sources will help reduce dependence on imported fuels, stabilize energy costs, and create a more resilient energy infrastructure.

Panel discussions focused on the vital role of private capital in the global transition to sustainable energy. Experts discussed strategies to attract private investments, highlighting the need for favorable regulatory conditions, innovative financial instruments, and risk mitigation mechanisms. It was noted that the private sector could significantly accelerate the energy transition, but clear government strategies and support are necessary.

“The reality is that we need US$3-4 trillion, depending on how you count it, to tackle climate change,” said panelist Dongik Lee, Senior Advisor to the AIIB President. “Last year, we had only US$1.3 trillion, and since the risks are high, the public sector must intervene and provide guarantees.”

Participants also discussed the challenges faced by investors in developing countries, including market volatility, long project timelines, and currency risks. It was emphasized that collaboration between the public and private sectors, as well as the active role of public institutions in reducing investment risks through guarantees and blended financing, are essential components of a successful transition.

“Achieving net zero emissions by 2050 comes with significant costs that could reach tens of trillions of dollars. Likely, the main burden of these changes will fall on developing countries,” added panelist Jose Isidro (Lito) N. Camacho, former Secretary of Finance and former Secretary of Energy of the Philippines, as well as a member of the AIIB International Advisory Council. “While this transition will not be easy, we cannot afford further delays. It is crucial to utilize both public and private financial markets to finance climate and energy transition initiatives effectively.”

In conclusion, session participants noted that attracting private capital for climate and energy initiatives is a key factor in achieving sustainable development goals and aligns with the theme of the ninth annual AIIB meeting: “Building Sustainable Infrastructure for All.”