\n<\/p>\n
\n The report spotlights the importance of NCS in climate change mitigation, challenges to NCS investments and country-specific opportunities for businesses <\/p>\n
SINGAPORE\u00a0–\u00a0Media \u00a0<\/p>\n As the first-of-its-kind study done in \u00a0<\/p>\n “To \u00a0<\/b><\/p>\n The According to the Intergovernmental Panel on \u00a0<\/p>\n Studies The \u00a0<\/p>\n “Many of the world’s most \u00a0<\/b><\/p>\n Opportunities The benefits of NCS for the Southeast \u00a0<\/p>\n Significant progress has been made to \u00a0<\/p>\n In addition to forest protection, \u00a0<\/p>\n “The potential climate mitigation and \u00a0<\/p>\n Putting NCS into play<\/b><\/p>\n To \u00a0<\/p>\n Mikkel Larsen, Chief Sustainability Officer, The full report is available at https:\/\/bit.ly\/3lTaBuz<\/a> <\/p>\n [1]<\/sup> <\/i>IPCC. (2018). IPCC, [2]<\/sup>Griscom, B. W., Busch, J., Cook-Patton, S. C., Ellis, P. [3]<\/sup>Y. Zeng, T.V.
\nOutReach<\/a>\u00a0–\u00a08 December 2020 –\u00a0<\/span>Conservation International, DBS Bank, National
\nUniversity of Singapore (NUS) and Temasek<\/a> <\/b>today jointly released a
\nreport on The Business Case for Natural Climate Solutions: Insights and
\nOpportunities for Southeast Asia<\/i>. The report<\/a> was
\nlaunched at a virtual session of Ecosperity
\nConversations<\/i>, a series of sustainability-focused dialogues hosted by
\nTemasek.<\/p>\n
\nSoutheast Asia, the report highlights the opportunities for businesses to
\ninvest in natural climate solutions (NCS) — climate
\nmitigation technologies that harness natural processes to reduce or remove
\ngreenhouse gas — to stimulate the implementation of NCS at scale. It
\nalso presents actionable takeaways for businesses to evaluate NCS opportunities
\nand engage with the public sector in the region.<\/p>\n
\nimplement natural climate solutions at scale, we need public-private sector
\npartnerships to deploy financial capital and preserve our natural capital. This
\nreport brings together perspectives from players across several sectors to
\ndefine the investment case for natural climate solutions in Southeast Asia, a
\nregion among the richest in both terrestrial and blue carbon sinks.” said Robin
\nHu, Head, Sustainability & Stewardship Group at Temasek.<\/p>\n
\nbusiness case for NCS<\/b><\/p>\n
\nClimate Change (IPCC), global warming is projected to reach 1.5\u00b0C between 2030
\nand 2052. This will have a long-term negative impact on natural and human
\nsystems, contributing to sea level rise and increased incidences of extreme and
\ndeadly weather events[1]<\/sup>. \u00a0<\/p>\n
\nhave shown that NCS play an important role in mitigating these devastating effects.
\nWith the potential mitigation impact of 11 gigatons of CO2<\/sub> annually,
\nNCS can provide over a third of the mitigation action needed to meet the Paris
\nAgreement Targets by 2030[2]<\/sup>.
\nYet, less than 3% of global climate finance is going towards NCS, signaling a
\nneed for investments to plug the financing gap needed for NCS to scale and reach
\nthe current climate targets set by governments to reach net-zero emissions by
\n2050. <\/p>\n
\nnew report highlights the role that businesses can play in helping to bridge
\nthis gap, along with the following business advantages:<\/p>\n\n
\nprivate sector has key, distinct advantages as an investor in NCS. Compared to
\nthe public sector, the private sector can often more rapidly deploy larger pools
\nof investment that are less susceptible to political risks. It is also skilled in
\ndeveloping cost-effective models that are financially self-sustaining.<\/li>\n
\nto the speed and scale at which they can deploy capital, businesses are
\nuniquely positioned to catalyse investment in NCS and stimulate a thriving
\ncarbon market by purchasing offsets. To ensure this resulting carbon market is
\neffective, they should also commit to high quality credits and fair prices,
\nsupport design and development costs, and engage in policy development and
\nadvocacy.<\/li>\n
\nprojects are comparable to engineered alternatives (such as carbon capture,
\nutilisation and storage technologies) in terms of cost and return-on-investment,
\nbut are significantly favourable when non-carbon benefits such as other social,
\neconomic and environmental outcomes are considered. When implemented with the
\nappropriate safeguards, NCS projects offer positive impacts far beyond carbon
\nsequestration, such as biodiversity conservation and ecosystem services to
\nlocal communities such as the provision of fresh water, food and disaster risk
\nmitigation.<\/li>\n
\nproject risk can be reduced through policy advocacy, technology deployment,
\ninclusion of cost buffers, and upfront community engagement.<\/li>\n<\/ul>\n
\ncarbon-rich ecosystems — tropical forests, peatlands and mangroves — are found
\nright here in Asia. Nature provides the best and most cost-effective technology
\nfor removing carbon from the atmosphere but is vastly underfunded despite new
\ncorporate climate commitments that are being made every day. This report
\nprovides a clear roadmap for direct investment in natural climate solutions,”
\nsaid Dr Richard Jeo, Senior Vice President, Conservation International
\nAsia-Pacific Field Division.
\nfor NCS in Southeast Asia<\/b><\/p>\n
\nAsian region are striking. With its vast rainforests and dense
\nstock of mangroves and seagrass, countries in the region possess highly
\nfavourable conditions for NCS investment and implementation in both terrestrial
\nand blue carbon, including an immense potential for investable carbon. For
\nexample, a new study by the NUS Centre for Nature-based Climate Solutions this
\nyear has shown that protection of tropical forests in Southeast Asia could
\npotentially generate a return-on-investment of up to US$27.5 billion a year.<\/p>\n
\nimplement and incentivise NCS in Southeast Asian countries. Several countries
\nare developing relevant regulations, presenting major opportunities for
\nencouraging the inclusion of NCS. An individual country-level analysis that
\nevaluates the most critical policies for NCS investments, including
\nopportunities for policy engagement to scale NCS, is included on pages 61-64 of
\nthe report.<\/p>\n
\nreforestation as a climate solution could provide a significant portion of
\nclimate mitigation potential across Southeast Asia. Even after factors such as
\nbiophysical, financial, and land-use constraints are considered, reforestation
\nin Southeast Asia can potentially contribute to removal of between 0.4 and 0.5 gigatons
\nof carbon emissions per year[3]<\/sup>. Across different
\necosystems, Southeast Asia holds the highest density of carbon prospecting for
\nNCS investments, including both terrestrial and blue carbon. <\/p>\n
\nfinancial payoffs of NCS are comparable with engineered mitigation solutions. If other
\nco-benefits that NCS provide are considered, such as clean air and water, coastal
\nresilience, biodiversity conservation, food security safeguard, and flood
\nprevention, they present even greater benefits,” said Professor Koh Lian Pin,
\nDirector of the NUS Centre for Nature-based Climate Solutions.<\/p>\n
\nhelp businesses implement NCS, the report highlights five areas of action:<\/p>\n\n
\nin NCS and offsets should be part of a broader portfolio of climate action that
\nalso includes decarbonisation, with the aim of reaching net zero by 2050 in
\nline with the Paris Agreement.<\/li>\n
\nprivate sector has a unique and critical role in scaling NCS: purchasing and committing
\nto high-quality carbon credits; supporting business model development and technical
\ninnovation for project design, implementation, and verification; and supporting
\nnational and jurisdictional government priorities. This includes aligning with
\nemerging national frameworks for NCS and providing clarity on ownership of
\ncredits to avoid double counting.<\/li>\n
\nshould apply a transparent price per metric ton that supports sustainable,
\n‘high-quality’ projects.<\/li>\n
\nthe full scope of both NCS and co-benefits captured would ensure a better and
\nmore targeted ROI, help measure impact, and potentially fetch higher prices.<\/li>\n
\npoorly represented in carbon markets. As they have limited scalable potential
\nand geographic restrictions, businesses should identify and target areas where
\nthe co-benefits can be maximised.<\/li>\n<\/ul>\n
\nDBS Bank, said, “Natural climate solutions present a compelling means to
\naddress climate change’s threatening trajectory, particularly in Southeast
\nAsia, and a collective effort across public and private players is key to
\nbringing this to fruition. With the science, investors and other building
\nblocks of this ecosystem falling into place, we are now reaching an inflection
\npoint where — with the inclusion of the private sector’s investment,
\ninnovation, and expertise — we can greatly catalyse growth and drive change.
\nMore than ever before, the private sector needs to consider the interests of
\nthe communities they serve, rather than focusing primarily on shareholders. Not
\nonly is this the right thing to do, it also leaves the businesses
\nwell-positioned to mitigate potential risks and capture opportunities in this
\nnew frontier. At DBS, we’re committed to supporting the development of industry
\ncollaborations and frameworks that will help pave the way for a more resilient
\nand sustainable future.”<\/p>\n
<\/p>\n
\n
\n2018: Summary for Policymakers (Global Warming of 1.5\u00b0C. An IPCC Special Report
\non the Impacts of Global Warming of 1.5\u00b0C above Pre-Industrial Levels and
\nRelated Global Greenhouse Gas Emission Pathways, in the Context of
\nStrengthening the Global Response to the Threat of Climate Change, Sustainable
\nDevelopment, and Efforts to Eradicate Poverty)<\/i>
\nW., Funk, J., Leavitt, S. M., Lomax, G., Turner, W. R., Chapman, M., Engelmann,
\nJ., Gurwick, N. P., Landis, E., Lawrence, D., Malhi, Y., Schindler Murray, L.,
\nNavarrete, D., Roe, S., Scull, S., Smith, P., … Worthington, T. (2020).
\nNational mitigation potential from natural climate solutions in the tropics.
\nPhilosophical Transactions of the Royal Society B: Biological Sciences,
\n375(1794), 20190126. https:\/\/doi.org\/10.1098\/rstb.2019.0126<\/i><\/p>\n<\/div>\n
\nSarira, L.R. Carrasco, K.Y. Chong, D.A. Friess, J.S.H. Lee, P. Taillardat, T.A.
\nWorthington, Y. Zhang, L.P. Koh. 2020. Economic and social constraints on
\nreforestation for climate mitigation in Southeast Asia. Nature Climate Change
\n10:842–844.<\/i><\/p>\n<\/div>\n<\/div><\/div>\n\n
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