“Decarbonization: Investing in Asia’s Future”

Decarbonization and Investment Opportunities in Asia

Singapore, 31 January 2023Asia plays a significant role in achieving global Net-Zero Emissions as several countries, such as China, Japan, and South Korea, have set ambitious targets for decarbonization. Proactive action taken in this direction can lead to opportunities to shape a greener future.

Last week, the Managing Partner of Gunung Capital, Kelvin Fu was invited to the luncheon “Decarbonization: Investing in Asia’s Future” hosted by Fullerton Fund Management. This event discussed the outlined issues of funding gaps and investment opportunities in Asia to move towards Net-Zero Emissions, also the adoption of practical steps to accelerate the transition.

The session was moderated by the Portfolio Manager of Fullerton Fund Management, Mervin Teo, and attended by another panelist, the Sustainability & External Affairs of APRIL Group, Lucita Jasmin.

In this opportunity, Kelvin shared his view on demystifying the meaning of decarbonization at the tactical level. He further explained that all sectors should take a deep dive into improving operating efficiencies as one of the low-hanging fruits that have real impacts on the bottom line.

Gunung Capital currently emphasizes two approaches to maximizing decarbonization through its portfolio in the steel industry. First, to be more efficient by investing in capital expenditure for machines and improving the existing operations. Second, to improve the upstream steel production process, which will focus on green raw materials procurement such as green iron ore, sourcing scrap metal, etc.

“Going green leads to new revenue opportunities in new markets especially given the rollout of carbon pricing across different regions and demand for lower carbon products,” Kelvin added.

At the end of the sessions, Kelvin concluded that laying out the decarbonization plan requires meticulous planning and resources. The private and public capital needs to support the significant capital expenditure requirements to go into the greener pathways.

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