Technology adoption and hitting these energy milestones can push Singapore and the region to be more climate-resilient. But additional, concerted efforts need to be put in place to accelerate the process.
Organisational capacity development is key to ensuring the transition remains just, fair, and equitable for all. Reskilling opportunities must be prioritised to preserve the jobs of those working in traditional sectors such as coal mining and fossil fuel power plants.
Those in the infrastructure industry should also be trained in emerging technologies for the sector’s collective advancement. KPMG’s Future of Work report found that a company’s investment in upskilling influences 62 per cent of employees’ decision to join, leave or stay with an organisation.
These workers will be the driving force behind industry transformation with their support for and comfort with new technologies.
It is also important to recognise that unlike sticking to the status quo, “accepting something new means you have to work harder. It requires a lot of effort from all levels, (from the board to operations)”, said Somani. “They need to each have buy-in.”
That is where public-private partnerships can make a difference. Policymakers are crucial to the implementation of new technology. With industry consultations and collective stakeholder involvements, they can establish forward-looking regulatory frameworks and design incentives like grants and concessions to catalyse innovation.
Additionally, given the capital-intensive nature of the industry, it may not be prudent to rely on governments to finance infrastructure requirements amid other essential needs like education, poverty reduction, and healthcare.
New and innovative ways to mobilise capital, such as blended finance, are necessary to fill funding gaps. The use of both philanthropic and commercial capital lowers the cost and risks for each stakeholder and makes previously commercially unviable projects possible.
The inclusion of philanthropic capital – provided by charitable foundations and individuals supporting social and environmental causes – will enable the development of more pilot projects and new technologies such as green hydrogen.
This includes developing the appropriate matrices to measure the impact of such capital and creating frameworks that can quantify the social benefits being accrued due to blended finance and impact capital. All these would be critical in unlocking this hugely important source of capital that could move the needle in the quest for smarter and more sustainable infrastructure solutions.
The key to this multifaceted approach, Somani concluded, is enhancing collaboration between stakeholders, including the government, multilaterals, academia and the private sector.
For instance, through the KPMG ASEAN Decarbonisation Hub, KPMG has partnered with leading organisations to help businesses in the region achieve their decarbonisation goals.
The Hub will help companies incorporate new technology for implementing innovative solutions, raise green financing by tapping various alternative sources, drive for credible accreditations and certifications across projects to develop trust, and leverage digital tools for cost-effective growth.
Somani said: “Nobody has to reinvent the wheel. We should build on each other’s successes.”
