#Taiwan #Taipei #Cathay Financial #COP29 #Climate Finance

Cathay Financial Advocates for Climate Finance

The 29th UN Climate Change Summit (COP29), held in Azerbaijan, concluded with a consensus aimed at accelerating global climate action. Leading the charge was Cathay Financial Holdings (Cathay FHC), represented by its President, Chang-Ken Lee, who passionately argued for the urgency of mobilizing climate finance during the summit's events.

As the initial speaker at the significant World Climate Summit (WCS) organized alongside COP29, Lee delivered a thought-provoking speech titled “Driving Systemic Change for Climate and Nature Solutions”. His well-articulated vision resonated with participants from around the globe, emphasizing the critical need for transformative changes to address the pressing climate crisis.

Embracing a Climate and Nature Industrial Revolution

Lee highlighted the imperative of initiating both a “Climate Industrial Revolution” and a “Nature Industrial Revolution” as essential pathways towards achieving net-zero emissions. These revolutions are necessitated by the urgent challenges presented by climate change and the loss of biodiversity. He called for deep, structural transformations in key sectors such as energy production, the circular economy, and technological innovations focused on nature-based solutions.

In his address, Lee referenced a popular Taiwanese saying: “Money doesn’t disappear; it just turns into something you like.” This humor-laden remark encapsulated his broader message that investments in climate solutions translate into a sustainable and prosperous future. He urged businesses and financial entities to escalate their efforts towards achieving sustainability goals, stressing that collective global action is critical for driving meaningful change.

Financial Mechanisms as Catalysts for Change

Acknowledging the unprecedented challenges the world faces due to climate change, Lee stressed the importance of comprehensive systemic transformation. Drawing parallels to the industrial revolutions across history, he noted that significant changes within our economic and societal structures are pivotal. Notably, the financial sector is becoming increasingly central to climate discussions—a trend underscored by the designation of COP29 as the “Finance COP.” This highlights the essential role that innovative financial mechanisms play in enabling climate objectives.

Lee pointed out that effective climate finance solutions require the integration of diverse resources and the adoption of innovative financing strategies. By articulating the various financial approaches available, such as blended finance, transition finance, and impact investing, he articulated the necessity of creating viable funding pathways that can support sustainability initiatives. He underscored the need for financial institutions to evolve in their assessment of risks and alignment of resources with specific project demands.

Cathay FHC itself has been a pioneer in this domain, having committed over U.S. $50 billion to sustainable financing by 2023, which includes more than U.S. $10.3 billion allocated to low-carbon projects. The company has taken significant steps towards advancing renewable energy development, such as financing Taiwan’s pioneering solar power and offshore wind energy initiatives back in 2011 and 2016, respectively.

Collaborative Efforts for Lasting Impact

As his speech drew to a close, Lee reiterated the critical importance of cooperation between all stakeholders involved in climate action. Cooperation with global leaders is vital for achieving systemic transformations and supporting the development of climate finance solutions in Taiwan and beyond.

In his closing remarks, he invoked the Taiwanese adage once more, reminding the audience that “every dollar invested in climate solutions transforms into a better, more sustainable future.” By encouraging immediate action from the corporate sector and financial institutions, Lee made a compelling case that unity and collective action are fundamental to achieving a future defined by sustainability.

Cathay FHC’s engagement in international climate dialogues has been holistic, partnering with the World Climate Foundation (WCF) since 2021 and representing Taiwan’s financial interests on significant global platforms, including COP28 in Dubai. This sustained commitment has positioned Cathay FHC as a leader in sustainable finance, actively engaging in initiatives such as the Asia Investor Group on Climate Change (AIGCC) and Nature Action 100.

In summary, Cathay Financial is not just advocating for climate finance; it is paving the way for a future where sustainability is at the forefront of economic progress and equity, firmly establishing its role as a trailblazer in Taiwan’s journey towards a greener economy.