SM Teo Chee Hean on why Asia must lead the global fight against climate change

At Ecosperity Week 2025, Senior Minister Teo highlighted the need for regional cooperation, clean energy infrastructure, and sustainable finance to drive climate action in Asia.

In a landscape marked by trade disruptions and geopolitical flux, Senior Minister Teo Chee Hean has affirmed: Asia's climate battle is now. While global uncertainties tempt nations to prioritise immediate economic concerns, the region cannot afford to defer climate action. SM Teo highlighted the vulnerability of Asia, particularly Southeast Asia, to the escalating impacts of climate change, warning of potentially devastating economic losses. The Asian Development Bank estimates that Asia could see losses of up to 41% of GDP by 2100 under a high-emissions scenario.

Further, by 2030, three-quarters of Southeast Asian cities could face regular flooding, potentially displacing tens of millions.

"Nature sets the pace, not us," SM Teo emphasised.

He pointed out the twist: Asia, once a smaller contributor to global emissions, now accounts for more than 50% of global CO2 emissions, making its role crucial in the global fight against climate change. In contrast, the US and Europe combined now contribute only about a quarter of global emissions.

"The way in which Asia sources for our energy – whether from fossil fuels or renewables – and how we decarbonise, will shape not only our own trajectory, but that of the entire world," he said.

While Asia is expected to account for 90% of the world’s future growth in energy demand, its per capita emissions remain significantly lower than the US (about triple) and Europe (about one-and-a-half times).

SM Teo outlined a pragmatic path forward, focusing on actionable solutions that align economic competitiveness with environmental sustainability. He stressed the importance of "should-do, must-do, no-regrets moves" such as energy-efficient buildings vehicular and industrial electrification, and large-scale solar and wind deployments. He also called for bridging the gap between green solutions and economic viability through regional collaboration.

Key areas for this collaboration included:

• Advancing the regional energy transition: SM Teo highlighted the untapped renewable energy potential in Southeast Asia. He advocated for an integrated ASEAN power grid, noting that electricity trade under the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project doubled last year, from 100 to 200 megawatts. He emphasised that an ASEAN grid could potentially lift GDP by up to 4.6% and create thousands of green jobs.

• Unlocking financing: Addressing the region's significant green financing gap, estimated at over US$210bn annually through to 2030, Minister Teo called for innovative financial solutions and stronger public-private partnerships. He spotlighted Singapore's Financing Asia’s Transition Partnership (FAST-P), which aims to mobilise up to US$5bn to finance green projects.

• Realising the region’s carbon market potential: Minister Teo highlighted the importance of developing high-integrity carbon markets to leverage Southeast Asia's rich ecosystems, which include 15% of the world’s tropical forests and over a fifth of the world’s mangroves. He emphasised the need for trust and transparency, advocating for global standards and frameworks that ensure the quality of carbon credits.

SM Teo also gave insights into Singapore's own climate journey, noting the shift in global conversations from questioning climate change's reality to focusing on action.

"In Singapore, we are climate realists," he stated, reaffirming the nation's commitment to achieving net-zero emissions by 2050. He highlighted Singapore's commitment to reduce its emissions to between 45 and 50mn tonnes of carbon dioxide equivalent by 2035, despite this accounting for only 0.1% of global emissions. Singapore was one of only 20 countries out of the 195 Parties to the Paris Agreement to have submitted its 2035 Nationally Determined Contribution.

In conclusion, SM Teo painted a vision of Asia leading the charge towards a sustainable future. He acknowledged the challenges but stressed the region's potential, capacity, and impetus for rapid change. By forging stronger regional partnerships and embracing innovative solutions, Asia can navigate the climate crossroads and secure a resilient future for generations to come.

Lead image / Senior Minister Teo Chee Hean's Facebook