New energy transition finance initiative for Southeast Asia
Government representatives from Cambodia, Malaysia, the Philippines, Thailand and Vietnam met global institutional investors and climate finance experts in Sydney on 28 September 2026 as part of a newly established peer network.
The group addresses barriers large institutional investors face in deploying capital into Southeast Asia through market development and is convened by the Australian Government, Investor Group on Climate Change (IGCC), the Asia Investor Group on Climate Change (AIGCC) and the NDC Partnership.
The work supports the COP31 finance agenda, and implementation of the new collective quantified goal on climate finance’s call on all actors to scale up finance to developing countries to at least US$1.3t of annually by 2035.
The governments’ representatives highlighted the need to scale climate finance into their markets. Discussion revealed the importance of policy stability, regional aggregation of both smaller-scale distributed energy opportunities like microgrids and utility-scale projects, and more consistent documentation of project fundamentals, including quality and sustainability, to fast-track investment decisions in less familiar markets.
Increased familiarity and reliable data will help move Australian and global institutional capital into Southeast Asia
Institutional investors have little exposure to energy transition projects in Southeast Asia, having favoured markets that operate similarly to their own, predominantly in Europe and North America.
Investors need reliable reporting, assurance and climate data to make informed decisions with confidence. Building familiarity in different markets matters for getting finance flowing, as does supporting these markets to demonstrate investable pipelines to foreign investors.
Australia is currently Co-Chair of the NDC Partnership, alongside Brazil. The NDC Partnership is a coalition of countries and institutions supporting country-owned climate and development action. Over the coming year, the Australian Government is supporting the peer network initiative to build and deepen understanding between investors and Australia’s Southeast Asian peers.
Southeast Asia’s energy transition is critical for reducing global climate risk
Investment in Southeast Asia’s energy transition will be a key factor in global efforts to achieve net zero emissions by 2050. The region is home to more than 704 million people, has fast-growing energy demand, and remains emissions-intensive, so its pathway will shape global mitigation outcomes.
Unless Southeast Asia reduces emissions (along with the rest of the world), the physical climate impacts in Australia and around the world will continue to increase, with commensurate economic damage.
Southeast Asia is also highly exposed to climate damage itself, which makes investment in resilience as important as investment in decarbonisation. Many of the world’s major trade routes pass through the region and its economic stability and energy security have increasing global significance. Governments across the region are moving rapidly to address these risks and improve the attractiveness of their markets to investors.
Ministries, investors and development partners in one room
The kick-off brought together officials from ministries of energy, finance, environment and industry, representatives of Australian and international investors, and partners including the Asian Development Bank, UNDP, UNEP and Australian policy and research institutions.
Supporting the COP31 finance agenda and the COP29 call for US$1.3 trillion a year by 2035
The peer network contributes directly to efforts to strengthen implementation, mobilise finance and investment, and build capability ahead of COP31, hosted in Türkiye with the Australian Government leading negotiations. Its capability-building approach complements the Climate Implementation Bridge initiative led by Türkiye as COP President, which seeks to connect project proponents with investors by developing a platform for turning finance commitments into investable projects.
It also supports delivery of the Baku to Belém Roadmap to 1.3T, which sets out how to scale climate finance into developing countries to US$1.3 trillion a year by 2035. The roadmap identifies many of the barriers the Investor Peer Network seeks to address through deep and sustained relationships and capability-building between investors and governments.
Next Steps: A Pilot Country, Workshops, and Investor Advice.
Over the coming weeks, the Network will identify a lead country for deeper work on one or two priority investment bottlenecks and practical follow-up options. Follow-on technical workshops will bring participating countries together around priority market-development issues, with investors contributing perspectives on investability and capital allocation.
At this early stage, aggregation was identified as an area for further exploration, particularly for smaller or fragmented opportunities, including whether lessons from existing regional approaches could help inform participating countries.
Quotes
Rebecca Mikula-Wright, CEO, AIGCC and IGCC:
“Institutional capital is essential in meeting the transition objectives of Southeast Asia, and it remains heavily under-invested by institutional investors in Australia and globally. This initiative demonstrates how powerful public-private engagement platforms are in problem-solving and accelerating action on climate change, leveraging and deepening the day-to-day work of our investor industry bodies.”
The Australian Government, Department of Climate Change, Energy, the Environment and Water (DCCEEW):
“Australia is proud to support practical partnerships like this Peer Network that drive NDC implementation and bring governments and investors together to unlock energy transition investment in Southeast Asia.”
“As we work towards COP31, Australia is helping strengthen implementation, improve access to climate finance and investment, and support countries to translate commitments into real-world outcomes.”
Quote from Pablo Vieira, Global Director of the NDC Partnership:
“Mobilizing private capital requires trust, understanding and a clear connection between country priorities and investor expectations. By creating a space for Southeast Asian governments to engage with investors and partners, this Peer Network can help strengthen the conditions for investment and align capital allocation with country needs. Facilitating these connections is central to how the NDC Partnership supports countries in delivering on their climate commitments.”
Quotes from the private sector:
Amelia Burnett, Digital Financial Strategies Director, Bentley Systems’ Infrastructure Policy Advancement initiative
“One of the most important outcomes of this initiative is bringing together all the players needed to move a project from concept to investment. Governments, investors, development finance institutions, advisers, technology providers and project sponsors each see different parts of the challenge. By creating a forum where those perspectives can be shared, we can better identify the barriers to investment and improve the quality, transparency and confidence needed to accelerate capital deployment into Southeast Asia’s energy transition.”
Persephone Fraser, Ethical Research & Climate Policy Lead, Australian Ethical
“We see strong opportunities in climate solutions, but unlocking greater institutional investment depends on clear, consistent policy settings. The NDC Partnership helps foster the conditions needed to expand investable opportunities, attract international capital and support the delivery of climate commitments across South East Asia.”
Will Farrell, Will Farrell, Co-lead on Climate Change, Federated Hermes
“The climate transition is no longer constrained by capital. It is constrained by a shortage of investable projects. Building on the ‘decade of implementation’ kickstarted at COP30, this initiative is poised to enable countries to convert their transition ambitions into bankable, investment-ready pipelines. Through deep private-public engagement on making the transition investable, this would not only accelerate the transition but also critically advance economic competitiveness, energy security, employment, affordability, and nature outcomes.”
About the organisations
IGCC is a collaboration of Australian and New Zealand institutional investors on climate change. AIGCC is the Asian network of investors working on climate change. The NDC Partnership is a global coalition of countries and institutions that helps governments deliver their climate commitments. DCCEEW is the Australian Government Department of Climate Change, Energy, the Environment and Water.
