What is the role of law and finance in climate change? In the words of Dentons Rodyk’s Global Vice-Chair and ASEAN CEO Mr Gerald Singham, "While the law provides the necessary frameworks for implementing climate policies, finance effectively mobilises resources to drive these initiatives and mitigate the devastating impacts of the impending climate crisis."
He was speaking at the opening of the annual Dentons Rodyk Dialogue held recently at Singapore Management University’s (SMU) Yong Pung How School of Law on 30 October 2024. The 2024 edition centred on ‘Climate Engagement, Finance, and the Law’.
“It is without doubt that climate change presents a fundamental threat to the environment and all life within it. Aligning the roles of law and sustainable finance with meaningful actions that yield lasting impacts is crucial as we confront a critical issue for humanity,” Mr Singham added.
Highlighting the significance of the thought leadership event, SMU Provost, Professor Timothy Clark, said, “For eight successive years now, Singapore’s global law firm Dentons Rodyk has partnered SMU’s Centre for Commercial Law in Asia to bring together thought leaders from the government, business, and academia to discuss some of the most important issues of the day. This year, the dialogue addresses the existential threat of climate change, with the central theme of ‘Climate Engagement, Finance, and the Law’. This is an area we at SMU care about and have colleagues from across the university researching.”
The event attracted over 200 guests from the legal fraternity and beyond, with keynote speakers from Boston Consulting Group, the University of Cambridge and GenZero sharing their expert insights on today's most critical challenges in climate change.
Mr Dave Sivaprasad, Managing Director, Partner, and Southeast Asia Lead in Climate and Sustainability at Boston Consulting Group, emphasised the urgent need for collective action to combat climate change in Asia. “Asia stands at a critical juncture in the global climate transition. While the region has the most to lose from rising temperatures, it also has the most to gain through climate action. Although the pace and scale of transition remain uncertain, by focusing on both mitigation and adaptation, Asia can not only safeguard its future but also unlock significant business opportunities. Key sectors such as energy, transport, construction, industry, and agriculture will experience major value shifts, and it is up to the public sector, corporations, investors, and civil society to harness these changes for a sustainable and resilient future,” he said.
In his presentation titled (No) End in Sight? The Role of Law in Tackling Public Finance for Fossil Fuels, Professor Harro van Asselt from the University of Cambridge made a compelling case and highlighted the concerning trend of record amounts of public money flowing into carbon-intensive activities in recent years.
He said, “As we consider the objectives of the Paris Agreement, it is crucial to acknowledge that in recent years, despite numerous international commitments to reduce public finance for fossil fuels, record amounts of public funding continue to drive carbon-intensive activities. By examining the roles of international law, climate change litigation, and national legislation, we can identify pathways to shift financial flows toward more sustainable and climate-resilient development.”
Ms Sim Ting, Managing Director and Head of Corporate Services Group and General Counsel at GenZero, shared in her presentation how corporations play a pivotal role in mobilising and directing financial resources to meet climate goals.
“To effectively facilitate financial flows towards climate initiatives, companies must adopt innovative strategies that align with emerging global trends in the legal and climate landscape. This includes leveraging new financial instruments, such as green bonds and sustainability-linked loans, as well as integrating environmental, social, and governance (ESG) criteria into their investment decisions, Ms Ting explained. “By understanding and responding to these trends, corporations can play a pivotal role in driving climate action while enhancing their competitive advantage in the market.”
Furthermore, Dentons Rodyk’s partners Emily Low and Jonathan Guwe addressed the critical intersection of law and finance in addressing climate change.
Ms Low underscored the necessity of robust legal frameworks to facilitate sustainable investments and enhance investor confidence, emphasising that clear regulations can attract capital for green initiatives, while Mr Guwe discussed the role of innovative financing solutions, such as green bonds and public-private partnerships, in supporting energy and infrastructure projects that align with climate objectives.
The panellists also discussed Singapore's urgent need for comprehensive policies that promote renewable energy and foster collaboration between the legal and financial sectors to effectively navigate the complexities of the climate transition.
In her closing remarks, Professor Lee Pey Woan, Dean of the SMU Yong Pung How School of Law, expressed her gratitude to the thought leaders for sharing their valuable insights. "Since 2017, we have held this dialogue series annually, bringing together the best thought leaders to discuss issues of significant social importance with each iteration.”
We are extremely grateful to Dentons Rodyk for their strong support throughout the years. In fact, Dentons Rodyk has been a wonderful friend of the Law School in other areas as well, supporting our students through their kind sponsorship of the Dentons Rodyk Prize for Top Student in Legal Research & Writing and the Dentons Rodyk Prize for Top Student in Corporate Law,” she added.
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