Asia’s Green Mandate

01/07/2017

Resource:  Asia’s Green Mandate

Published by:  CLSA-U

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Note:  Technical terms are marked with an * and explained in the Glossary


What does the Paris Agreement mean for investors in Asia?

NDCi.Global Founders Ian Callaghan and Tessa Tennant were commissioned to write this report by CLSA-U, looking at the implications of the Paris Agreement and other sustainability factors for Asia’s corporates.  Who are the winners and who are the climate zombies?

In Paris last December, almost every country submitted a plan to reduce their carbon emissions. These plans are converging with three other factors to trigger a radically altered “new normal” that is green not brown or grey.  We see these four drivers coming together:

4 powerful drivers are at work … 
  • Resource stress, as economic growth tests the limits of the region’s natural assets
  • The costs of climate change, both physical and economic, which often amplify the impacts of resource stress
  • Major global agreements on sustainable development, translating into reforms and fund flows
  • Investor and advocacy pressure to improve environmental and social responsibility in corporate governance, as well as putting the brakes on climate-unfriendly investment.
…Creating a multi-trillion dollar opportunity

This Clean-Up Convergence translates into a multi-trillion dollar investment agenda – Bloomberg recently estimated just the clean energy investment needed at USD 12 trillion over the next two and a half decades. With major investments also needed on the climate adaptation side, we predict the Clean Takeoff will influence the fortunes of many Asian companies.   The region’s giants, China and now India are setting the pace and illustrate how these trends will play out for the region as a whole.  


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