As the climate crisis intensifies and global uncertainties deepen, from supply chain disruptions to rising energy demands, the call for a more resilient and sustainable future has become urgent. At the 58th Annual Meeting of the Asian Development Bank (ADB) in Milan, one message echoed clearly across all sessions from high-level policy forums to private sector dialogues: the future of Asia’s growth must be both resilient and sustainable. It underscored a pragmatic shift towards systems that can anticipate, absorb, and adapt to future shocks, while still delivering inclusive growth. Crucially, it also highlighted the foundational role that financing must play, not just in supporting new infrastructure, but in shaping behaviors, industries, and institutions for a more resilient Asia-Pacific region.
Bridging Finance and Resilience: A Regional Imperative
Asia and the Pacific face an increasingly complex risk landscape from climate-related disruptions to global supply chain fragilities and energy insecurities. At the same time, the region holds enormous potential. As emphasized during the ADB CEO Forum, unlocking this potential requires strategic alignment between capital providers, corporates, and institutions like the ADB. The private sector has a crucial role to play, not only as recipients of capital but as architects of innovative, bankable solutions.
Financing resilience goes beyond funding physical infrastructure. It means investing in systems, people, and technologies that anticipate and adapt to future shocks. This includes greening industries, digitizing knowledge, and building inclusive platforms for collaboration. As one of strategic shifts highlighted, this also means fostering stronger supply chain integration across borders.
“Going Green Is a Vision, Not a Pressure”
At the session titled “Hard to Abate, Hard to Ignore”, Kelvin Fu, Managing Partner of Gunung Capital and Chief Transformation Officer of PT Gunung Raja Paksi Tbk (GRP), emphasized that green transformation is not merely an environmental responsibility but a strategic move to strengthen business competitiveness. In markets where environmental costs remain relatively low, GRP has proactively embedded sustainability into its brand and operations positioning it as a long-term differentiator rather than a reactive measure. This approach reflects a forward-looking vision that aligns environmental progress with commercial resilience.
This vision-driven approach aligns with what many investors are now prioritizing: long-term resilience over short-term gains. Green steel, for instance, represents an enormous opportunity for Indonesia and the wider region. But to lead in this space, businesses must access transition finance to modernize production methods, like replacing blast furnaces with electric arc furnaces and develop credible decarbonization strategies that include technical assistance and stakeholder buy-in.
Kelvin further emphasized that such a transition is not possible without collective support. “The road to decarbonization is paved with the need for significant expertise. Technical assistance is not a luxury; it’s a necessity. We need to collaborate, share knowledge, and build capacity to truly transform hard-to-abate sectors.”
The Role of Private Capital in De-risking Transitions
Resilience financing must address the investment gap in sectors that are hard to decarbonize or traditionally seen as “unbankable.” According to the IEA and ADB, meeting net-zero targets across Asia will require trillions of dollars in private and public capital. But financing alone is not enough, what’s needed is patient capital paired with technical insight. This is where private equity and impact-focused asset managers can lead.
By applying blended finance models and supporting mechanisms like transition credits, tools discussed during the ADB forum, private equity can aim to create viable pathways for businesses in heavy industries to adopt greener technologies. Transition credits, for example, could incentivize early decommissioning of legacy infrastructure like blast furnaces, accelerating the timeline toward low-carbon alternatives.
Democratizing Knowledge and Fostering Trust
Another critical insight from the CEO Forum was the importance of sharing knowledge and building human connections. As discussed in Milan, decades of ADB technical assistance have generated a treasure trove of solutions that must now be democratized. Leveraging AI to synthesize and distribute these solutions as practical playbooks can help enterprises in emerging markets overcome barriers to implementation.
But beyond technology, progress also hinges on trust. As we engage in financing and transforming industries, we must prioritize conversations that foster genuine dialogue between stakeholders—from financiers to factory floor workers. This is especially true in ESG integration, where frameworks often fall short unless grounded in local understanding and collaboration.
Looking Ahead: Finance as a Force for Good
Gunung Capital dedicates a commitment to shaping a more sustainable and resilient future. With a focus on mobilizing capital toward transformative solutions, we believe that finance must do more than fund change and it must help design it. This requires moving beyond conventional carbon accounting to champion investments that drive inclusive growth, support innovation, and build adaptive capacity in the face of uncertainty.
In today’s rapidly evolving landscape, one truth is becoming increasingly clear, the green transition will not happen to the private sector; it must happen with and through it. For financial actors, this is not just a responsibility but a strategic opportunity: to lead boldly, to finance courageously, and to help build a future that is not only profitable but sustainable and resilient for generations to come.
