Demystifying Transition Financing and Carbon Credits

On Wednesday, 1 November ~50 industry professionals from the agrifood, energy, consultancy, legal, investment, finance, startup and policy space gathered at the Stephenson Harwood (Singapore) Alliance office to Demystify Transition Financing and Carbon Credits, particularly in anticipation of COP28 in Q4 this year. 
With the world and industry striving for carbon neutrality (and with much interest around the topic leading up to COP28 later this month), our speakers discussed the challenges that lay ahead and what we should look out for to avoid financial greenwashing. Especially as the World watches the US’s and Europe’s going back and forth towards transition finance policies. Critically, our speakers were addressing the question on everyone’s mind - what will this mean for the Asia Pacific region?

This event is part of a series of monthly learning and networking sessions run by WOMAG - a volunteer-run organisation formed in 2016 to accelerate the development of women leaders in the food and agribusiness industry in Southeast Asia by providing opportunities for networking, knowledge-building, and professional development.

Opening and Keynote:

The event kicked off with a compelling exploration of the critical intersection between sustainability and business viability. The consensus was clear: sustainability is no longer an optional accessory for companies; it's a non-negotiable core element for a future-proof business. However, a singular focus on sustainability, divorced from financial pragmatism, can be detrimental, risking the depletion of capital.

Following welcoming remarks from Michelle Yong (Partner at Stephenson Harwood (Singapore) Alliance, the event’s venue sponsor) and Vivan Sia (WOMAG’s President), the stage was ceded to BreeAnne Yek, Strategic Advisor at The Verdant Room and the keynote speaker of the session. 

BreeAnne compared transition finance reshaping the financial landscape  much as Henry Ford’s automotives and assembly line changed the world. She highlighted what transition finance is - a financing vehicle that supports businesses and industries that are shifting from high-carbon and environmentally harmful operations towards a more sustainable one. 

Why is it critical now? BreeAnne stressed that climate change, resource depletion, and biodiversity loss are threats we can no longer ignore. While green financing supports projects that are already sustainable, many industries need financial support to transform. Without transition finance, they might be left behind, or worse, continue their harmful practices. Challenges remain - such as determining what qualifies as 'transition' can be subjective - so transition financing will demand robust frameworks and standards to prevent "greenwashing" (i.e., where companies portray themselves as more environmentally friendly than they truly are), and marry purpose to profit. 

Overall, BreeAnne summarised that transition finance offers a clear incentivisation pathway for businesses to improve their environmental footprint, often leading to cost savings, improved stakeholder relations, and a competitive edge in the marketplace. The global market for transition finance is rapidly growing, presenting a myriad of opportunities for investors, institutions, and businesses.

As stakeholders, we all have a role to play. Whether you’re an investor seeking opportunities, a business looking to transform, or a consumer making purchasing decisions, you're a part of this journey. It’s not just about money. It's about providing mentorship, sharing knowledge, and forging partnerships.

Panel Discussion:

Following BreeAnne’s keynote, WOMAG welcomed our panelists - Chris Argent (Business Sustainability Lead, APAC, Syngenta), Cheryl Bowler (Head of Carbon Origination, APAC, Vertee), and Hari Nair (Co-Founder and CEO, Zuno), as well as our moderator, Louis Chan (Sustainability Manager, Golden Energy and Resources).

In the past decade, the carbon credit landscape has gained prominence as companies seek to achieve their carbon neutrality targets. Yet, incidents like the Kariba mega-project in Zimbabwe have cast shadows over the integrity of this approach. Acknowledging these challenges, our speakers highlighted the importance of establishing verifiable deforestation baselines and called upon measurement and verification bodies to step up. The message was clear: lLet's collaborate to enhance credibility rather than discard a valuable tool.

When it comes to the timing and appropriateness of companies using carbon credits, the consensus was that there's no one-size-fits-all answer. Both large and smaller corporations have successfully employed this strategy. However, initiating the process early and actively engaging with the market to position themselves before monetization was encouraged.

Shifting the discussion to the topic of carbon tax, which is set to rise in Singapore from the current SGD5/tonne to SGD25/tonne next year, it was acknowledged that this cost would inevitably trickle down to consumers. While taxation is a starting point, the focus should extend beyond punitive measures, emphasizing the promotion and delivery of sustainable solutions.

In the event's second phase, the spotlight turned to transition financing. The Monetary Authority of Singapore (MAS) underlined the imperative for finance institutions to engage with carbon-intensive entities, favouring transition over indiscriminate divestment. The speakers concurred on the advantages of transition but emphasized that factors like the firm's transition plan, target-setting methodologies, and transparent documentation of claims were critical to avoid greenwashing.

In essence, the event offered a comprehensive exploration of the intricacies surrounding sustainability, carbon credits, and transition financing, shedding light on the path forward for businesses seeking to navigate this dynamic landscape.

About the Speakers:
Chris Argent - Head of Business Sustainability, Asia Pacific, Syngenta

Chris began his career in Federal and State politics in Australia, working for various elected representatives, including the Premier of South Australia. Subsequently, he worked extensively in the private sector in external affairs and communications, most recently with PepsiCo in Asia Pacific. Chris joined Syngenta in May 2020 as Head of Business Sustainability for AsiaPacific.

In this role, he is responsible for shaping and implementing the company’s sustainability strategy in the region. As a champion for Syngenta’s Good Growth Plan, Chris is responsible for developing strategic partnerships and community engagement with NGOs, value chain players, farmers and food companies with the objective of delivering sustainable agriculture outcomes for all stakeholders, enhancing food security and reducing the impact of agriculture on the environment.

Cheryl Bowler -Head of Carbon Origination APAC, Vertree

Cheryl has over 20 years’ experience in environmental markets with a focus on the Asia-Pacific region. At Vertree she is helping companies achieve their net-zero goals through the development of high quality nature-based projects ensuring they have a long lasting positive impact on the environment, communities and biodiversity. She also develops carbon removal projects in the agricultural sector in the compliance markets in both Australia and New Zealand.

Hari Nair - Co-Founder & CEO, Zuno

Hari is an Aerospace Engineer graduated from the University of Michigan – Ann Arbor in United States, Hari worked closely with environmental and sustainability regulations, reporting and strategy.

While working as a consultant, seeing companies turn away from making an impact because of the sheer time and effort it takes made it apparent that to make change happen, practicing sustainability needs to be made as easy as possible. This led to the establishment of Zuno Carbon along with two other co-founders, making him one of the youngest climate-tech startup founders in the world.

Hari is currently the CEO of Zuno Carbon, an award-winning climate tech startup based in Singapore that helps businesses navigate the messy sustainability landscape.

Louis Chan - Sustainability Manager, - Golden Energy and Resources

As a Sustainability Manager, Louis leads the formulation of practical sustainability strategies and policies that are fit for purpose and introduce comparative advantage against peers. He works to engage stakeholders across all levels of the organisation to foster a culture of sustainability and social responsibility. Having been from a sustainability consultancy background, he is also familiar with various verticals from sustainable procurement, ESG funds, data centre strategies, etc.

He enjoys aligning his professional interest in sustainability with his personality of challenging himself and embedding innovation processes, bringing more significant meaning to his work. Overall, he believes in giving back to the community to spark change, which he does through being a mentor, speaker and advisor to individuals and organisations.

BreeAnne Yek - Strategic Advisor, The Verdant Room

After launching Singapore's first crypto x climate start-up Carb0n.fi in 2021, BreeAnne has turned her toolkit to enabling other start-ups in the space the last year, bringing her understanding and network in corporate, finance and sustainability ecosystems to the evergreen battle against climate change.

In her spare time, she can be found mentoring at blockchain hackathons, researching her pet passions in biosecurity & healthcare with ChatGPT, and occasionally patting dogs.