2022.11.9 WED

10:30 - 12:00

Financing a just and orderly transition - Filling the gaps to pave the way to a credible transition path

Organizer

MUFG Bank, Ltd.

Seminar abstract

The urgent need for decarbonization is globally recognized, though it remains unclear exactly how countries will achieve transition to net-zero emissions within the timeframes set out in the Paris Agreement. Despite this shared goal, there is no single pathway to achieve Net Zero, and most countries leverage on a suite of technologies to meet individual countries’ circumstances and physical and geographical constraints. Moreover, for the case of Asia, this region needs to weigh continued industrialization, which will create new job opportunities but accompanied by a growing demand for energy to support growing economies and population. A balanced approach is desired to maintain “just and orderly transition”.
To reduce emissions while maintain sustainable growth, financial institutions need to understand these challenges through engagement with their clients. As a Japanese financial institution with a strong commitment to achieve net zero by 2050, MUFG has a vested interest in reducing emissions across its portfolio, not through divestment but facilitating real economy decarbonization. MUFG works closely with the Japanese government and industries to deliver on Japan’s climate commitment to achieve carbon neutrality by 2050. MUFG is actively participating in the global initiatives such as Glasgow Financial Alliance for Net Zero (GFANZ) and Net Zero Banking Alliance (NZBA), and regional initiatives such as Asia Transition Finance Study Group to accelerate transition across the globe.
This seminar will showcase decarbonization challenges and opportunities related to transition in Asia from various stakeholders’ perspectives. The seminar will further discuss the importance of financial institutions’ engagement with their clients to have a good understanding of technology optionality to achieve a low emission economy, where capital is required, and what can unlock the opportunity of just and orderly transition in the region. The panelists also provide their insights and implication to other emerging economies and developing countries including Africa and Middle East.

【Agenda of the Event】

1. Opening Remarks: MUFG Ms. Zeniya, CSuO
2. Keynote Speech(1): World Bank Group Mr. Jorge Familiar, Vice President and Treasurer
3. Fireside Chat: the London School of Economics and Political Science (LSE) Ms. Danae Kyriakopoulou, Distinguished Policy Fellow
   MUFG Mr. Kono, Senior Advisor
4. Keynote Speech(2) : MUFG Mr. Oshima, Managing Executive Officer
5. Panel Discussion
   (Moderator) MUFG Mr. Ishikawa, Managing Director, Head of Government & Regulatory Affairs Office
   (Panelists)
   Blackrock, Mr. Paul Bodnar, Managing Director, Global Head of Sustainable Investing
   LSE, Ms. Danae Kyriakopoulou, Distinguished Policy Fellow
   OECD, Mr. Michael Mullan, Programme Lead: Climate-resilient Finance and Investment
   ISSB, Dr. Ndidi Nnoli- Edozien, ISSB member
   HSBC, Mr. Justin Wu, Managing Director, Co-Head of Climate Change Asia Pacific
   Securities Commission Malaysia, Ms. Azreen Idayu Zainal, General Manager, Sustainability Department
6. Closing Remarks: MUFG Mr. Kono, Senior Advisor

Speakers

• Miyuki Zeniya（MUFG Bank., Ltd.） Group Chief Sustainability Officer
• Jorge Familiar（World Bank Group） Vice President and Treasurer
• Masamichi Kono（MUFG Bank., Ltd.） Senior Advisor
• Danae Kyriakopoulou（the London School of Economics and Political Science） Distinguished Policy Fellow
• Koichiro Oshima（MUFG Bank., Ltd.） Managing Executive Officer, Head of Financial Solutions Group
• Tomohiro Ishikawa（MUFG Bank., Ltd.） Managing Director, Head of Government & Regulatory Affairs Office
• Paul Bodnar（Blackrock） Managing Director, Global Head of Sustainable Investing
• Michael Mullan （Organization for Economic Cooperation and Development(OECD)） Programme Lead: Climate-resilient Finance and Investment
• Ndidi Nnoli-Edozien（International Sustainability Standards Board, the IFRS Foundation） ISSB member
• Justin Wu（HSBC） Managing Director, Co-Head of Climate Change Asia Pacific
• Azreen Idayu Zainal （Securities Commission Malaysia） General Manager, Sustainability Department

Session Summary

With the theme of “Financing a just and orderly transition - Filling the gaps to pave the way to a credible transition path”, the event featured keynote speech, Fireside Chat and panel discussion. After the opening remarks, MUFG presented initiatives on carbon neutrality including NZBA, Asia Transition Finance Study Group, MUFG Transition Whitepaper, etc. The World Bank commented that it is necessary to address climate change while taking into account not only the physical and geographical constraints of each country but also the degree of economic development. The panel discussion was attended by diverse members from the OECD, the London School of Economics, ISSB, Blackrock, HSBC and Securities Commission Malaysia, and focused primarily on what is necessary for a just and orderly transition, credible transition plan and how disclosure should work. Panelists noted the “importance of commitment, not divestment”, the need for a transition across the real economy, and the different stages of transition for different sectors. Finally, we confirmed that we will all continue to make our effort to just and orderly transition.