SAN FRANCISCO – Asia-Pacific Economic Cooperation (Apec) economies can hit clean energy goals faster by deploying new technologies and new financial models, Prime Minister Lee Hsien Loong said at an informal dialogue between Apec leaders on sustainability issues on Nov 16.

There is a great deal that Apec economies can collectively do to accelerate progress on climate change, he told fellow leaders, who are trying to hasten the use of clean energy while also keeping the path open to sustainable and inclusive economic growth.

Apec economies account for nearly 40 per cent of the world’s population and 50 per cent of its gross domestic product. But they contribute 60 per cent of global greenhouse gas emissions and 65 per cent of carbon emissions.

Speaking at the annual Apec summit, PM Lee said investing in promising new technologies, such as low-carbon hydrogen, was one way. “But new technologies have to be deployed at scale to become affordable, and no economy can do this alone,” he said, adding that Singapore is seeking partners to scale up supply chains for its low-carbon hydrogen strategy.

Low-carbon hydrogen is a fuel that is made in a way that creates little to no greenhouse gas emissions compared with the conventional fossil-based hydrogen.

PM Lee also drew attention to the need to develop a high-integrity carbon market. Carbon credits allow companies to offset their carbon dioxide emissions, but they are sometimes abused, letting companies claim polluting products as “carbon-neutral”.

“We need clearer and more harmonised rules, requirements and standards around carbon credits,” he said.

He also suggested pooling resources to overcome the high cost of clean energy transition, noting that the Asian Development Bank had estimated that the region will need US$1.7 trillion (S$2.3 trillion) a year in infrastructural investments for climate mitigation and adaptation over the next decade.

“We need to unlock private financing to complement public capital,” PM Lee said, adding that Singapore is tapping industry partners, multilateral development banks and philanthropists to develop a blended finance partnership to catalyse capital for green projects in Asia.

Blended finance combines concessional public funds with commercial funds to pay for projects that are unable to proceed on strictly commercial terms.

Fossil fuels make up most of Apec’s current energy mix – 86 per cent of total energy supply and 75 per cent of electricity generation.

And although these economies continue to add coal capacity, Apec is ahead of schedule in meeting its goals to double the use of renewable energy.

As the Apec host nation, the United States has pushed for a new goal of having electricity generation from carbon-free or carbon-neutral sources by 2035.

It has also focused on “just energy transition”, which is about preparing society for the switch from traditional energy to climate-friendly energy systems.

US Special Presidential Envoy for Climate John Kerry, who moderated the Apec leaders’ discussion, said the session threw up a variety of ways to help cut emissions so that the earth’s temperature increase can be limited to 1.5 deg C to avert climate disaster.

“I don’t think there’s anything we’re not paying attention to. From batteries to fusion, which has always been a long way away, to the more immediate things like direct air carbon capture, and carbon capture and storage utilisation,” he said in an interview.

As a way to reduce emissions, carbon dioxide can be captured at emission sources, transported and then stored or buried in underground locations. It can also be removed directly from the atmosphere.

“People are also looking at artificial intelligence in the context of management of grids and distribution of energy,” Mr Kerry added. “So everything is coming together. It hasn’t gelled yet, but people have a vision for it.

“I think we’re in an age of new discoveries. This is a massive market – billions of people need clean power.”

San Francisco’s Bay Area, a global technology hub, is also trying to position itself as a place for climate technology.

Dr Gracelin Baskaran, research director and senior fellow for the Energy Security and Climate Change Programme at the Centre for Strategic and International Studies, said Apec leaders deserved credit for showing up.

“Signalling is a really powerful thing,” she said.

“But it only creates an enabling environment for action. And what we want to see is the extent to which a summit is actionable.”

Mr Kerry acknowledged the weight of expectations, saying: “Everybody has a different twist on reducing emissions because of their economy or their energy base.”

The upcoming COP28 United Nations climate summit will flesh out some of the issues, he said.

The conference will be hosted by the United Arab Emirates from Nov 30 to Dec 12 in Dubai.