Finance

Southeast Asia's frustration with the state of climate finance

Published

1 year ago

January 26, 2025

Southeast Asia's frustration with the state of climate finance

The 29^th United Nations Climate Change Conference, or COP29, ended in much frustration in Azerbaijan last year. The agreement on the new climate finance goal was a disappointment to Southeast Asia, which urgently needs more funding to tackle and adapt to climate change.

At the summit, developed countries agreed to increase their climate finance provision to developing countries from US$100 billion to US$300 billion annually by 2035. Contributions from governments and multilateral development banks are expected to meet this target. Given the broader goal to raise US$1.1 to US$1.3 trillion annually in climate finance, this means developing countries would need to raise up to US$1 trillion annually from the private sector and other sources by 2035. These finance provisions will help to fund climate mitigation (reducing greenhouse gas emissions in the atmosphere, such as through increased uptakes of renewable energy) and climate adaptation projects (adjusting to the consequences climate change) in developing countries.

Global South representatives have expressed anger and disappointment with the negotiation process and with the New Collective Quantified Goal on Climate Finance (NCQG) because, in their view, climate finance should primarily consist of grants and, to a lesser extent, low-interest loans that minimise financial burdens on governments in developing countries. The NCQG, however, suggests that developing countries will have to rely on for-profit private investments to satisfy most of their climate finance needs, especially as discussions of new finance sources, such as from levies on fossil fuels and air travel, remain vague. Moreover, if inflation is taken into account, the pledged US$300 billion climate finance target will lose 20 per cent of its value by 2035.

Southeast Asia has good reasons to be frustrated with the climate finance agreement at Baku. According to the Asian Development Bank (ADB), Southeast Asia needs US$210 billion — around 5 per cent of the region’s gross domestic product (GDP) — annually until 2030 to invest in climate-resilient infrastructure, and it is unlikely that public finances alone can reach this target. Southeast Asia’s adaptation needs call for investments in multiple areas, such as in agriculture, water management, mangrove protection, and Early Warning Systems to identify climate-related risks and hazards. Estimated total climate adaptation cost, expressed as a percentage of gross domestic product (GDP) in each Southeast Asian country, ranges from 0.1 per cent (for Singapore) to 2.2 per cent (for Cambodia).

To protect its standard of living, Southeast Asia should step up its efforts on climate action and look for additional alternative sources of climate finance.

Southeast Asia’s energy demand growth is also not being evenly matched by investments in renewable energy. A quarter of the growing global energy demand over the next decade is estimated to come from Southeast Asia. However, according to the International Energy Agency, renewable energy investment in Southeast Asia accounts for only 2 per cent of the global total. Although public and private finance play crucial roles in accelerating energy transition in the region, concessional finance of US$12 billion by the early 2030s is needed.

Given the inadequacy of the NCQG, Southeast Asia should continue to look beyond UN climate conferences for climate finance. Even if greater climate finance commitments had been reached at COP29, it would have nevertheless been a Pyrrhic victory. As history demonstrates, countries tend to fall short of their promises. In 2009, developed countries pledged to provide US$100 billion in climate finance per year by 2020, but their contributions only surpassed this target for the first time in 2022.

In Southeast Asia, Indonesia and Vietnam have joined the Just Energy Transition Partnerships (JETPs), a multilateral climate finance initiative supported by the Group of 7 (G7) that encourages developing countries to transition away from coal-fired power.

Large financing gaps remain, however. Countries such as Thailand, Indonesia, Malaysia and Vietnam have joined the Japan-led Asia Zero Emission Community (AZEC) initiative, which aims to mobilise up to US$8 billion until 2030 to support decarbonisation in Asia, but a third of AZEC projects involve natural gas and fossil-fuel technologies. Asean and the ADB have also established the Asean Catalytic Green Finance Facility (ACGF) to provide loans for green infrastructural investments in the region. Another noteworthy initiative is Singapore’s Financing Asia’s Transition Partnership (FAST-P) which utilises blended finance to advance energy transition in Asia.

It is uncertain whether the options listed above will suffice. Southeast Asia’s battle against climate change is a high-stakes race against time. According to a study by Swiss Re in 2021, the GDP of Asean countries could, in the worst-case scenario, fall by 37.4 per cent by 2048 if the average global temperature rises up to 3.2 degree Celsius compared to the pre-industrial period.

To protect its standard of living, Southeast Asia should step up its efforts on climate action and look for additional alternative sources of climate finance. This should include (but should not be limited to) debt relief, debt-for-nature swap (writing off countries’ debt in return for tangible outcomes in climate/nature projects), green bonds, and support for the new UN global tax convention that aims to raise tax revenues to support sustainable development in the Global South. Such efforts are necessary but might not be sufficient: the financing gap is huge, and the time is short.

Prapimphan Chiengkul is an Associate Fellow with the Climate Change in Southeast Asia Programme at the ISEAS – Yusof Ishak Institute.

This article was first published in Fulcrum, ISEAS – Yusof Ishak Institute’s blogsite.

Finance

Houston budget amendment would give financial assistance to help those impacted by a trash fee

Published

1 hour ago

June 3, 2026

Press Room

Houston budget amendment would give financial assistance to help those impacted by a trash fee

HOUSTON, Texas (KTRK) — Houston City Council could soon consider whether to offer financial assistance to help those who may struggle to afford a proposed trash fee.

This month, council will approve a budget. In it, Mayor John Whitmire doesn’t increase taxes.

However, he does want to charge a $5 monthly fee to cover trash services. A plan to help close the city’s nearly $200 million deficit that doesn’t add up to some.

Speaking in front of council on Wednesday, Super Neighborhood 64 president Lindsay Williams brought more than concerns, she had numbers surrounding the mayor’s proposed $5 monthly trash fee.

A plan his team says could climb to $25 a month by 2032. If it does, Williams told council that $300 annual cost would be just .15% of a $200,000 income.

For someone making $15,000, it’s two percent. “More than 13 times the burden for the same trash, same truck and same fee, but not the same pay,” Williams explained.

However, Controller Chris Hollins said the mayor’s not being truthful about the real cost.

“Houstonians are not stupid,” Hollins said. “We should not treat Houstonians like they’re stupid.”

Hollins said the cost may need to be $40 a month. Whitmire didn’t respond to Hollins during the meeting when he asked if he plans to increase the fee.

No matter the cost, some council members want to offer financial relief. Right now, there are no exceptions.

However, an amendment council will consider from Council Member Alejandra Salinas next week would change that.

“If they for whatever reason met the threshold and need an additional need because of the administrative fee, our amendment would allow them to apply for funds through the water fund,” Salinas said.

The trash fee wasn’t the only item from the mayor’s seven and a half billion dollar budget proposal that sparked debate. Hollins said a plan to divert money away from water utilities could drain a billion over the next five years from infrastructure money.

Whitmire disagrees saying there’s more than enough funds to handle the change, and continue with projects.

“We’ve all admitted the budget’s not perfect, but certainly it’s a first start that Houstonians understand and it’s a shame it’s being so politicized because it’s literally people’s lives and death,” Whitmire said.

Council will vote on amendments next week. It has to have a new budget in place by the end of the month.

Finance

How can I illustrate our financial position to a spouse who shows little interest?

Published

11 hours ago

June 3, 2026

Press Room

How can I illustrate our financial position to a spouse who shows little interest?

Reader question: My spouse has little interest in our financial position. As we age, this concerns me. I try to share some basic information (income, spending, account balances, debt, and so on) each month but rarely get a response. I think graphs or charts might be of more interest to her than a bunch of numbers. What recommendations would you have for illustrating our financial position so that I am not the only person aware of how we are situated? Thanks!

Answer: Your situation is pretty common. Most couples I know develop a division of labor over time, where one person is in charge of financial matters and the other person is less involved. That’s definitely the case for my husband and me. He’s in charge of paying all the monthly bills and preparing our tax returns, but the financial planning and investment decisions are up to me. This type of arrangement might work well for a long time, but can become less sustainable with age, particularly if the “finance person” in the relationship dies or develops a major health issue.

Online tools and mind maps

Illustrating your financial situation with charts and graphs is a great idea that might help your spouse become a little more involved. Morningstar’s  Portfolio X-Ray  tool includes a variety of images that help illustrate your financial situation. Websites for most major brokerage firms also include some visual tools. Schwab, for example, offers a Portfolio Checkup and a bar graph illustrating your account’s monthly income from dividends and interest income. Vanguard has a Portfolio Watch tool and a variety of performance illustrations, tools, and calculators.

A  mind map, which we used with clients when I worked for a financial advisory firm, can be another way to picture your entire financial situation on one page. There are various  softwaretemplates  for drawing a mind map, or you can simply sketch it out with a large sheet of paper and a pencil. Start with your names at the center of the page. Then draw spokes connecting to various categories, such as names of other family members; investment accounts; real estate and other assets, insurance policies, estate plans, key goals and values, and contact information for accountants, estate planners, and other professionals. It can be helpful to go through the mind map together and make any updates needed at least once a year.

Other ways to communicate about money

A few other ideas—though not related to charts and graphs—might also be useful.

I like the idea of putting together a  net worth statement  that itemizes cash, taxable accounts, real estate, retirement accounts, and debt for each member of the couple as well as items owned jointly. It’s a good idea to update this document at least once a year and  discuss it as a couple. If you set up the document as a spreadsheet, you can include columns with additional information such as account numbers, what each account is used for, which accounts are subject to required minimum distributions, or tax issues like potential capital gains.

Many couples also put together a  binder  (sometimes humorously called a “Doomsday Book”) that contains information about where to find important paperwork, insurance policies, how bills are paid, what each account is for, steps the surviving spouse will need to take, final wishes, and any other critical information.

A well-qualified financial adviser can bridge the information gap

Finally, you could consider working with a good  financial adviser,  who can help involve your spouse in financial matters while you’re still living and step in to fully manage investments and personal finance decisions if you pass away before your spouse. Make sure the adviser holds the Certified Financial Planner designation and charges fees that are reasonable. Although a 1% fee is still the industry standard for accounts of $1 million or less, it’s possible to find advisers who charge significantly less, including a few who price their services based on hours worked instead of a percentage of assets under management.

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This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.

Amy C. Arnott, CFA, is a portfolio strategist for Morningstar and co-host of The Long View podcast.

Finance

Proximo Congress 2026: US Energy & Infrastructure Finance | Insights | Mayer Brown

Published

22 hours ago

June 3, 2026

Press Room

Proximo Congress 2026: US Energy & Infrastructure Finance | Insights | Mayer Brown

Mayer Brown is a proud sponsor of Proximo Congress 2026. This senior meeting of the US energy, infrastructure, and digital infrastructure finance community is shaped around the questions credit and investment committees are actually asking in 2026: how asset classes are converging, how risk is being priced in a recalibrated policy and geopolitical environment, and how public and private capital are being structured together to deliver projects at scale.

Mayer Brown has also been recognized for three separate awards which will be presented during the event. These awards include: