Singapore could mobilise $57.5b retail capital inflows for climate change initiatives

Around 9 in 10 investors want to contribute to climate investing.

Standard Chartered said Singapore can serve as a “connection market” to drive around $57.5b (US$43b) in retail capital inflows to support net-zero goals in Asia, according to a Standard Chartered report.

Standard Chartered said around 94% of Singaporean investors are keen on climate investing, with 80% inclined to increase capital flows towards climate in a bid to reduce portfolio and make a positive impact.

The report found that up to $34.8b (US$26b) of investment could be secured for mitigation themes such as energy efficiency and carbon capture and storage.

Around $22.7b (US$17b) could be driven to climate adaptation in various areas such as resilient infrastructure, food systems, and biodiversity.

Affluent investors are driven by improved returns, and higher interest in climate mitigation and adaptation, particularly in energy efficiency and renewables.

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High-net-worth (HNW) prioritise reducing portfolio risks and making a positive impact in investing in climate mitigation, whilst NextGen HNW also want to cut portfolio risks and is driven by social norms.

Meanwhile, technical, and cognitive barriers are key challenges that hamper investors from injecting capital into climate mitigation and adaption, the report read.

The report which identified a global potential of $4.5t (US$3.4t) for climate investing, surveyed 1,800 respondents in 10 growth markets in Asia, Africa in the Middle East that belong to the affluent, HNW, and NexGent HNW.

$1 = US$0.75