Decarbonisation is an expensive endeavour, and it is critical to move quickly to finance the transition to net-zero emission objectives, according to Ravi Menon, Managing Director of the Monetary Authority of Singapore.

Menon stressed the importance of balancing decarbonisation and development during his keynote speech at the COP27 Singapore Pavilion Finance Day on Wednesday.

"We must also balance decarbonisation and development. The world requires significant financing for sustainable development and new technologies to reach net zero by 2050—by some estimates, USD 9.2 trillion annually. This is USD 3.5 trillion more than the annual investment today," Menon said.

Menon went on to say that the climate crisis is too big for governments or any one country to overcome and that a global effort and a whole-of-society approach are required.

"Effective partnerships across the public, private, and people sectors will be key to mobilising the financing necessary for an effective and just transition," he added.

Singapore, he says, is well-positioned to be a carbon service and trading hub.

Lastly, he said that we all have the same goal, which is to get rid of all greenhouse gases by 2050.

"However, time is running out; we must act now, quickly, and collectively; there has never been a better opportunity for us to discover a common purpose, establish solidarity, and safeguard the sustainability of our planet and better lives for people everywhere," Menon said.

From November 6 to 18, the 27th session of the Conference of the Parties to the UN Framework Convention on Climate Change, or COP 27, is happening in Sharm El-Sheikh, Egypt. The goal is to build on past successes and pave the way for dealing with global climate change in a more effective way.

This year's COp27 conference is even more important in light of multiple extreme weather events, including typhoons in Bangladesh, record floods in Pakistan, dry rivers in China, and droughts in Africa.

Source: Business Insider

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