The bank showcased its innovative financing solutions to support clean mobility and energy transition for countries across the region.
UOB Thailand commits to financing a greener future for ASEAN. The bank has showcased a comprehensive suite of sustainable frameworks and financing solutions to support businesses across all industries along their journey to achieve net-zero goals.
At the recent Future Mobility Asia (FMA) and Future Energy Asia (FEA) 2023, UOB showcased its thought-leadership and solutions through dialogues among top industry leaders, innovators, experts and policy makers. This demonstrated how the bank's innovative financing solutions can help make a difference for sustainability in the region.
Mr Tan Choon Hin, President and Chief Executive Officer, UOB Thailand, said "UOB believes it is our responsibility to engage with stakeholders across the region and help them transition to a better future by adopting sustainable initiatives. As the One Bank for ASEAN, UOB is committed to supporting the region toward a just, sustainable and green transition.
Climate change is a critical issue for all of us. UOB simplifies sustainable financing for business with its comprehensive suite of sustainability frameworks and solutions to enable and empower companies to take a step in forging a sustainable future."
According to the United Nations, the energy sector produces around three-quarters of total greenhouse gas emissions around the world. For the sector to drastically reduce carbon emissions, investments and effort need to be put into replacing coal, gas and oil-fired power with energy from renewable sources.
To significantly advance energy transition for the region, banks like UOB can play a critical role in capital allocation to finance sustainable investments for the energy sector. According to IRENA, to achieve the 1.5?C-degree climate target set out in the Paris Agreement, the cumulative investments of US$57 trillion will be required by 2030 in the energy system, including infrastructure and efficiency. Of the total investment required, financial institutions are expected to contribute about 57 per cent from lending and capital markets, 25 per cent from private equities while the rest will be from development banks and public equity markets.
Transportation accounts for nearly 20 per cent of global greenhouse gas emissions. For the Electric Vehicle (EV) industry, where the future of clean mobility lies, the global EV adoption rate is expected to increase from 18 per cent in 2023 before reaching 35 per cent in 2030. Within ASEAN, many markets are expected to exhibit strong double-digit annual growth in EV sales volume for the next few years due to favorable government policies and increased model availability. Governments in ASEAN such as in Thailand and Indonesia are not just looking at promoting the EV sector for their net zero agenda but to also capture new foreign investments and economic value-add by attracting EV Original Equipment Manufacturers (OEMs) to set up manufacturing plants in their respective countries.
Automotive companies looking to capture this potential growth can tap on U-Drive, UOB's comprehensive solution for the EV ecosystem. The solution provides financing and connectivity across the EV value chain - from automotive suppliers, OEMs, car dealers and EV Charging Infrastructure (EVCI) providers to end-users - seamlessly, to drive the development of the EV industry and the adoption of green transportation across ASEAN.
The bank is also collaborating closely with multiple stakeholders in both the public and private sectors to develop innovative green financing solutions such as financing of renewable energy, energy-efficient buildings through U-Energy and other activities that reduce greenhouse gas emissions and improve resource efficiency.
UOB's U-Solar programme, for example, is ASEAN's award-winning one-stop solar ecosystem financing platform that aims to support the entire value chain of solar industry ecosystem and make solar energy accessible to businesses and individuals. The successful launch of the programme in Thailand, Singapore Indonesia and Malaysia not only empower companies to meet their decarbonisation targets but also scale up the adoption of renewable energy within ASEAN. Collectively across the region, the U-Solar programme has contributed to the reduction of more than 186,000 tonnes of greenhouse gas emissions.
For more information on UOB's sustainable financing solutions, please visit https://www.uobgroup.com/uobgroup/sustainable-financing.page