Cathay Financial Holdings Calls for Climate Finance Mobilization to Drive the Climate Industrial Revolution

TAIPEI, Dec. 13, 2024 /PRNewswire/ -- The 29th UN Climate Change Summit (COP29) ended with consensus in Azerbaijan, during which Cathay Financial Holdings' (Cathay FHC) President Chang-Ken Lee led the corporate delegation, hoping to advocate for climate finance mobilization. As the opening speaker at the "World Climate Summit (WCS)," a key event alongside COP29, Lee delivered a speech titled "Driving Systemic Change for Climate and Nature Solutions." His visionary and comprehensive insights garnered strong resonance from the diverse global audiences. 

In his remarks, Lee highlighted the unprecedented challenges posed by climate change and biodiversity loss, emphasizing the urgent need for systemic transformation. Drawing parallels to the transformative impacts from the First Industrial Revolution's steam engine to the Fourth Industrial Revolution's digital advancements, Lee called for a "Climate Industrial Revolution" and a "Nature Industrial Revolution" to drive structural and systemic transformation across energy, circular economy, nature-based solutions, and technological innovation.

He acknowledged that such transformations will inevitably impact existing economic structures and social equity, making the establishment of just transition mechanisms a critical task. Lee expressed optimism that collaboration and dialogue with global leaders would accelerate the development of climate finance solutions across Taiwan, Asia, and the broader international community.

Lee noted that "finance" has become increasingly central to COP discussions, with COP29 dubbed the "Finance COP." This underscores the critical role of financial mechanisms in achieving climate goals. He emphasized that the financial sector's growing focus on supporting climate resilience projects hinges on integrating cross-sectoral resources and leveraging diverse financing approaches. Aligning resources effectively with specific projects based on varying risk profiles and capital needs is essential to make climate finance solutions both actionable and scalable.

Lee emphasized that beyond proper resource allocation, innovative financial models and tools can unlock suitable funding. He pointed to the promising progress of mechanisms such as blended finance, transition finance, impact investing, and pay-for-success bonds. By adopting these innovations, financial institutions can better assess risks and channel significant resources toward sustainable transformation.

Lee also shared Cathay FHC's decade-long commitment to climate finance. With over USD 400 billion (approximately TWD 12 trillion) in assets under management and a client base representing 63% of Taiwan's population, Cathay FHC has spearheaded initiatives such as low-carbon financing, international advocacy, and the development of sustainability-focused products and services.

In 2011 and 2016, for example, Cathay FHC financed Taiwan's first solar power and offshore wind energy projects, advancing renewable energy development. The company launched Taiwan's first sustainability-themed private equity fund and pledged to achieve 100% renewable energy use across all global operations by 2050, in line with its net-zero emissions goal. By 2023, Cathay FHC had committed over USD 50 billion (TWD 1.6 trillion) to sustainable financing, including more than USD 10.3 billion (TWD 330.5 billion) in low-carbon investments.

In closing, Lee humorously referenced a popular Taiwanese saying: "Money doesn't disappear; it just turns into something you like." He remarked, "Every dollar invested in climate solutions transforms into a better, more sustainable future." Lee called on corporations and financial institutions to take bold and immediate action, emphasizing that global unity is crucial to achieving a lasting impact on sustainability.

Since 2021, Cathay FHC has partnered with the World Climate Foundation (WCF) to participate in key COP events, including hosting live broadcasts of COP27 in Egypt and becoming the first Taiwanese company to serve as a global strategic partner for the WCF in 2023. Lee has represented Taiwan's financial sector at key global forums, including the COP28 World Climate Summit in Dubai, highlighting Taiwan's innovative contributions to climate finance.

Cathay FHC continues to gain international recognition for its leadership in sustainability. Actively participating in global initiatives such as the Asia Investor Group on Climate Change (AIGCC), Climate Action 100+, RE100, and Nature Action 100, Cathay FHC has solidified its reputation as a leader in sustainable finance. Domestically, the company co-hosted the "Cathay Sustainable Finance and Climate Change Summit" with the Taiwan Stock Exchange, engaging companies that represent 82% of Taiwan's market capitalization and account for 54% of carbon emissions from listed companies. Cathay FHC remains steadfast in driving industry and societal progress toward sustainable development, cementing its role as a climate finance pioneer in Taiwan.

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