Compact

It’s a bird, it’s a plane - it’s another newsletter 😉 

It’s time for South East Asia to prove that we can walk our green-economy talk. Too many problems, too little consistent progress, while China been on it silently.

A first for Malaysia - The Bursa Carbon Exchange is the country’s first voluntary carbon marketplace, focusing on nature-based carbon credits. This initiative has expanded the Exchange’s product offerings, which also include renewable energy certificates and Gold Standard-certified carbon credits.

The Exchange held its first carbon credit auction last month, featured credits from the Kuamut Rainforest Conservation Project in Sabah. The auction attracted businesses committed to reducing their environmental impact through carbon credits. The credits were cleared at RM50 per contract, reflecting the Project’s high value.

The voluntary carbon market in Malaysia is expected to grow organically, similar to its renewable energy certificates market. The country is still in the process of developing a compliance carbon market to be overseen by the government.

🌻 Also in July, Malaysia’s private sector launched the Malaysia Carbon Market Association to accelerate the development of carbon markets in anticipation of a potential carbon tax in 2025.

Sustainability + Technology = Funds’ newest true love 💚 

• Vietnam’s Earth Venture Capital participated in a USD3.2 million funding round for Sparxell, a UK-based developer of sustainable, plant-based pigments. Earth VC aims to leverage its regional expertise to introduce Sparxell’s innovative solutions to emerging Asian markets, particularly in the textile and cosmetic industries. Sparxell’s pigments are designed to replace traditional chemical colorants, which are harmful to the environment. The textile industry alone emits over 1.5 million tons of dyes and microplastics annually.

• Sydney-based venture capital firm Investible is actively seeking climate-focused technology start-ups in Singapore and neighboring countries. The firm is launching a USD150 million fund in collaboration with Indonesia’s largest bank, Bank Mandiri, to support these investments.

Nuclear not so near - Singapore inked a deal with the United States on the same day Indonesia nudged Russia for help.

Geopolitical tensions are complicating South East Asia’s ambitions to develop atomic energy. Countries in the region, such as Vietnam, Indonesia, and the Philippines, are exploring nuclear power to meet growing energy demands and reduce carbon emissions. However, these efforts are hindered by concerns over nuclear safety, waste management, and the high costs associated with building and maintaining nuclear plants. Additionally, the geopolitical rivalry between the United States and China adds another layer of complexity, as both superpowers vie for influence in the region.

The U.S. promotes its nuclear technology and safety standards, while China offers attractive financing options and rapid construction capabilities. This competition creates a challenging environment for Southeast Asian nations, which must navigate these geopolitical dynamics while addressing domestic concerns.

More green waves this way

Thailand is Chinese BYD’s first factory destination in South East Asia - a result of EU’s levied tariffs on Chinese EV and Thai’s government reduced tariff.

Slip through the cracks, literally - Methane slips from LNG ships jeopardize net zero goals in maritime sector. Growing LNG hubs in the region such as Thailand, Vietnam and the Philippines may significantly add to existing emissions.

Sustainability everything - CBRE acquired Singapore-based Paia to meet the rising demand for sustainability services among clients across Asia.

Greenwashing is ever more real - Companies should prioritize direct carbonization of their value chain rather than relying on carbon credit as a substitute.

Indonesia has the largest floating solar power project in South East Asia - the Cirata farm could power 50,000 households

The S in ESG - Vietnamese biotechnology company Gene Solutions received a social loan from HSBC’s New Economy Fund to expand its application of gene analysis and gene decoding technology to precision medicine.

Had fun riding the green waves? Hit reply, let us know!

Wish you a wonderful day.