CBET Thematic Workshop
17 Jan 2025
Sharing the findings from the impact valuation for energy transition projects in Asia (2013–2022) was the focus of Associate Professor Zhang Weina’s keynote presentation at the Cross Border Electricity Trading (CBET) Thematic Workshop organised by the Energy Studies Institute (ESI) on 17 January 2025. Prof Zhang, Deputy Director of the Sustainable and Green Finance Institute, shared insights on how sustainable and green financing could facilitate the region’s electricity trading and energy transition projects. The workshop brought together diverse stakeholders, including developers, technology providers, financiers, regulators such as the Energy Market Authority, and academics.
Prof Weina began by sharing how her team applied the integrated return on investment (IROI) methodology to 359 energy transition projects in Asia from 2013 to 2020 financed by green bonds. The IROI methodology computes the holistic impact value from economic, environmental, and social performance scaled by the total amount of investment. The valuation framework comprised of 47 harmonized impact metrics and 22 value drivers, enables governments, corporations, and financial institutions to monetize the EES impacts.
She also shed insights into funding dynamics, highlighting the pivotal role of Multilateral Development Banks (MDBs) in financing these projects in less developed Asian countries and how corporates have taken the lead in more developed nations. These results suggested room for blended financing with public and private financing. Moreover, the results also called for more disclosure by corporate issuers. Following the keynote, Prof. Zhang also participated as a panellist in the panel discussion titled "Financing the Future of Cross-Border Electricity Trade," moderated by Zhen Hui-Eng (Director, Baringa), alongside esteemed panellists Len George (Principal Energy Specialist, Asian Development Bank), Rajiv Vishwanathan (Executive Director, DBS Bank), Raphaël Chabrolle (Executive Director, Structured Finance Department Asia, Sumitomo Mitsui Banking Corporation – SMBC Group), Christopher Ang (Global Head of Infrastructure & Project Finance, UOB), and Wilfred Ho (Director, Sector Coverage APAC, MUFG).
The panel explored various risk factors in CBET projects, effective strategies to de-risk investments, and the roles of governments, financial institutions, and stakeholders in fostering investment confidence. As CBET projects may span a long period and require substantial amount of CAPEX, the panel also addressed the concerns about adequate funding to support them. The key takeaway is to foster the collaboration among stakeholders to deepen the understanding of the business complexity, close funding gap and reduce the risk through credible commitments.