A study by S&P Global Sustainable1 shows that financial institutions in the Asia-Pacific region face rising risks from climate change and biodiversity loss, given the region’s high exposure to extreme weather. Despite their key role in funding climate action, only 13% have net-zero targets for financed emissions, 19% have adaptation plans, and 35% conduct climate risk scenario analyses. Biodiversity commitments are limited, though higher in countries like India. The report calls for more data-driven, localized strategies to help institutions manage environmental risks and support a low-carbon transition.

Wärtsilä, a global tech group, has introduced a modular Carbon Capture Solution (CCS) for cargo ships that can cut CO₂ emissions by up to 70%. Designed for both new builds and retrofits, the system uses a five-stage process that cleans exhaust gases, absorbs CO₂ with proprietary amine solvents, and then stores the liquefied CO₂ onboard for later disposal. The system has successfully processed 50 tonnes of CO₂ per day from engines running on heavy fuel oil. With the shipping industry facing strict emissions regulations by 2050, this scalable solution could help prevent up to 700 million tonnes of CO₂ emissions annually, offering a viable path toward net-zero maritime operations.

Integrated, full-spectrum climate finance strategies that align fiscal and monetary policy tools within nationally led frameworks is the key to sustainable climate financing. The authors argue that such cohesive financing—spanning public budgets, private investment, and monetary instruments—is essential to drive sustainable, long-term climate action. Success requires tailoring these financial packages to local economic contexts, ensuring coordination among stakeholders, and embedding them within coherent national systems to strengthen economic resilience and advance climate goals.