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Temasek's sustainability chief on scaling climate finance for Asia

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  Published in Business and Finance on Monday, October 20th 2025 at 23:52 GMT by The Straits Times
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Scaling Climate Finance for Asia: Temasek’s Vision Ahead of COP30

In a landmark interview released just before the 2024 United Nations Climate Change Conference (COP30), Temasek’s Chief Sustainability Officer, Dr. Liza Ng, outlined the investment bank’s ambitious roadmap to mobilize climate finance for the Asian region. The Singapore‑based sovereign wealth fund, which manages a portfolio worth roughly S$330 billion, has long positioned itself as a catalyst for sustainable development, and Dr. Ng’s remarks signal a sharp acceleration of that mandate in the lead‑up to the global summit in November.

A 10‑Year Climate‑Finance Blueprint

Dr. Ng explained that Temasek’s “Sustainability Initiative 2025‑2035” has three pillars: (1) scaling green investments, (2) strengthening climate‑risk frameworks, and (3) deepening regional partnerships. The first pillar alone is slated to deliver an additional S$40 billion of capital to renewable‑energy projects, energy‑efficiency upgrades, and low‑carbon infrastructure across Southeast Asia, India, and China.

To achieve this, Temasek will diversify its portfolio beyond traditional fossil‑fuel‑adjacent assets. The fund plans to allocate 25 % of its annual capital spend to clean‑tech start‑ups and mid‑stage companies that are developing battery storage, carbon capture and utilization (CCU), and circular‑economy platforms. Moreover, a “Green Bond Accelerator” will be launched to support issuers of green bonds, providing a structured pathway for governments and corporates to tap into Temasek’s expertise in risk assessment and market analytics.

Climate‑Risk Integration Across the Board

A recurring theme in the interview was the integration of climate‑risk metrics into every investment decision. Dr. Ng noted that Temasek’s internal Climate Risk Committee, in collaboration with the International Finance Corporation (IFC) and the World Bank, has begun to embed Physical and Transition‑Risk Modelling into its due‑diligence processes. This approach will identify vulnerable portfolios and recommend mitigation strategies such as climate‑resilient infrastructure upgrades or policy‑aligned divestments.

“The shift is from a reactive stance to a proactive, anticipatory stance,” she said. “By embedding scenario analysis into our financial models, we can forecast the potential impact of carbon pricing, regulation, and climate events on asset valuations. This ensures that our portfolio remains resilient over the next decade.”

Regional Collaborations and Policy Alignment

Temasek is actively engaging with Asian financial institutions to create a regional climate‑finance corridor. Dr. Ng highlighted the bank’s recent partnership with the Asia‑Pacific Regional Climate Finance Initiative (ACF), which aims to coordinate capital flows into critical infrastructure projects such as high‑speed rail electrification and smart‑grid deployments in ASEAN countries.

The fund is also working with the Singapore Exchange (SGX) to launch a Sustainable Finance Index that will track ESG‑compliant issuers and provide market incentives for green borrowing. This move is in line with Singapore’s National Climate Change Secretariat’s (NCCS) mandate to promote green finance and aligns with the “Net‑Zero by 2050” roadmap.

Innovations in Green Bond Market

Dr. Ng highlighted Temasek’s pioneering role in green bonds, noting that the fund has already invested in over 50 green‑bond issuances in the past five years, with a cumulative volume exceeding S$8 billion. The firm plans to expand this footprint by issuing its own green bond in 2025, targeting a 30 % allocation to renewable‑energy and climate‑resilience projects in emerging markets.

“Green bonds are not just a financial instrument; they are a messaging platform,” she said. “They signal to the market that the issuer is committed to environmental stewardship and encourages other players to follow suit.”

Challenges and Opportunities

While Temasek’s strategy is ambitious, Dr. Ng acknowledged key obstacles. Data gaps in climate‑risk assessment remain a challenge, especially in less‑developed economies where infrastructure vulnerability is high. The fund is investing in AI‑driven data analytics to fill these gaps and enhance predictive accuracy.

Additionally, the policy landscape across Asia is fragmented, with varying regulatory frameworks for ESG disclosure and green finance. Temasek’s role, therefore, extends beyond capital deployment to active policy advocacy. The firm is lobbying for standardised ESG reporting and carbon‑pricing mechanisms that can accelerate capital flows toward low‑carbon projects.

Looking Ahead to COP30

With COP30 set to convene in Jakarta, Dr. Ng stresses that the conference is an opportune moment for multilateral commitments and for capital markets to align around a common climate agenda. Temasek plans to host a side‑event at the summit titled “Capital for Climate: Bridging Finance and Action in Asia.” The event will bring together investors, regulators, and innovators to discuss scaling mechanisms such as blended finance, climate bonds, and impact investing.

“In a world where the pace of climate action determines economic resilience, Temasek’s mandate is clear,” Dr. Ng concluded. “We are not just financing projects; we are financing a future that is inclusive, resilient, and sustainable for all of Asia.”

For more details on Temasek’s sustainability initiatives and related policy frameworks, see the following resources:

1. Temasek Green Bond Overview – https://www.temasek.com.sg/green-bonds
2. Singapore Exchange Sustainable Finance Index – https://www.sgx.com/sustainable-finance
3. Asia‑Pacific Regional Climate Finance Initiative – https://www.acf.org/

These links provide deeper insights into the specific instruments, partnerships, and market frameworks that underpin Temasek’s strategy to scale climate finance across Asia in the critical years leading up to COP30.