Beyond Horizons
Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity, and defi! We follow and forecast where the money’s at.
Join us as we navigate through the latest roundup to uncover key developments across the region.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**
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Resilience in London and the UK: Moving from Aspiration to Reality
The research project "Resilience in London and the UK: Moving from Aspiration to Reality" by the Centre for Climate Finance & Investment and the Singapore Green Finance Centre consists of three parts focused on the real estate and water sectors in London and the UK.
Part I analyzes various investment and financing models for adaptation and resilience through eight case studies. It addresses questions about the role of the private sector, investment models, and drivers for institutional investors.
Part II, "Urban Adaptation Financing," compares London's adaptation finance with Copenhagen and Singapore, aiming to glean insights for enhancing urban climate adaptation financing.
Part III will offer policy recommendations based on insights from Parts I and II, targeting policymakers, regulators, and financial institutions to facilitate private investment in climate adaptation across London and the UK.
Access Part I of the report here.
Putting Words into (Climate) Action: Ushering in Corporate Transition Plans
The UN Global Compact Network Singapore, in collaboration with the Asia-Pacific Centre for Environmental Law (APCEL), has created a practical climate action guide titled, "Putting Words into (Climate) Action: Ushering in Corporate Transition Plans."
Authored by Sean D. Tseng and Carol Yuen, the guide aims to provide clear guidance and actionable insights for companies of all sizes and industries. It helps organizations move beyond climate rhetoric by assisting them in developing robust transition plans to address climate change effectively.
Fuelling National and Regional Ambitions with Shared Biofuel Strength within ASEAN Countries
The ASEAN Centre for Energy's report, titled "Fuelling National and Regional Ambitions with Shared Biofuel Strength within ASEAN Countries," offers a thorough analysis of the region's energy sector, emphasizing the pivotal role of biofuels in achieving regional renewable energy objectives.
The report delves into the challenges and opportunities associated with biofuel production, trade dynamics, and regulatory frameworks across ASEAN nations. It also advocates for increased regional collaboration and innovation to effectively address the complexities of biofuel feedstocks and trade, aiming to foster a sustainable biofuel future in ASEAN.
Aligned with the above, the ASEAN Air Transport Working Group (ATWG) unveiled the ASEAN Sustainable Aviation Action Plan (ASAAP) and its Terms of Reference (TOR) in April. The plan aims to propel sustainable aviation growth across ASEAN, initially concentrating on the advancement of sustainable aviation fuels.
Key objectives include sharing best practices in aviation decarbonization, facilitating information exchange to bolster sustainability efforts, collaborating with ASEAN Member States and partners to develop a Sustainable Aviation Roadmap, and aligning with the sustainable transport goals set forth in the Kuala Lumpur Transport Strategic Plan 2016-2025 and subsequent Post-2025 Vision Roadmap for ASEAN Transport Cooperation.
Access the ASEAN Sustainable Aviation Action Plan (ASAAP) here.
Summary
Finance & Investments: MUFG Leads $195 Million Investment in Ascend Money for Thailand's Digital Financial Expansion; Climate X Raises $18 Million to Scale Global Climate Risk Intelligence Platform; and Neustark Secures $69 Million to Scale Carbon Dioxide Removal Technology
Fintech: Asia's Fintech Venture Investments Set to Reach $548 Billion by 2028; Paywatch Raises $30 Million to Expand On-Demand Salary Access Services Across Asia; and Reserve Bank of India Finalizes Framework for FinTech Sector Self-Regulation
Environmental Sustainability: Enterprise Singapore and Partners Invest in Green Tech Solutions for Sustainable Development; Samsara Eco Secures $65 Million to Advance Global Plastic Recycling Initiatives; Wellington Airport Introduces Sustainable Aviation Fuel and Plans All-Electric Flight Services; MUFG Bank Invests in LanzaJet to Expand Sustainable Aviation Fuel Production; ISO Initiates Development of International Standard for Net Zero Emissions; IFRS Foundation and IFC Partner to Enhance Sustainability Reporting in Emerging Markets; Thailand Updates Energy Plans to Accelerate Renewable Energy Adoption; and Chevron Lummus Global to Provide SAF Technology for Pioneering Project in China
Cybersecurity: Study Reveals Singaporean Concerns over Bank Cybersecurity Measures; and Lexasure and OneDegree Global Launch Cyber Insurance Platform for SMEs in Asia
Aviation: Hong Kong Airport Authority Awards Tender for Autonomous Mass Transportation System; and Hong Kong Airport Introduces Advanced Smart Security Screening System
Maritime: VINSSEN Achieves Milestone with Maritime Fuel Cell System Approval; and EPS and YGT Complete First Cargo Deliveries with Fully Electric Vessel in Singapore
Finance & Investments
Japan-Thailand
Mitsubishi UFJ Financial Group (MUFG) is leading a $195 million investment in Ascend Money, a major player in Thailand's digital payment and financial services sector, in partnership with Krungsri Finnovate.
Ascend Money, supported by Thailand’s Charoen Pokphand Group, serves 30 million active users with a focus on consumer payments and financial services. The company collaborates with key partners like True Corp and 7-Eleven and is expanding its digital lending operations to capitalize on its large customer base.
MUFG has been actively expanding its commercial banking presence in the Asia-Pacific region, investing in various digital startups and technology firms such as Grab, Home Credit, and Akulaku. Initiatives like the Garuda Fund and DMI Finance.
💡The integration of Ascend Money into MUFG's “Openly-connected Digital Ecosystem” (MODE) reflects its strategy to enhance digital technology capabilities and solidify its position in the financial services landscape across Asia-Pacific.
Global
Climate risk intelligence firm Climate X has secured $18 million in Series A funding aimed at accelerating its global expansion. The company's platform utilizes AI and digital twin technology to model the likelihood of 16 climate hazards across various warming scenarios over a 100-year period, down to the level of individual assets. The simulations help assess potential annual losses and the return on investment for preemptive climate adaptation measures spanning 22 different interventions.
The funding, led by GV (Google Ventures), with contributions from existing investors Pale Blue Dot, CommerzVentures, noa VC, and Blue Wire Capital, along with new investors PT1, Unconventional Ventures, and Western Technology Investment (WTI), will support Climate X's expansion efforts in Europe, North America, and the Asia-Pacific region.
💡The funding will also bolster the company's commercial team at its newly established New York office and enhance its platform with additional data sources to meet evolving commercial and regulatory needs.
Global
Neustark, a Swiss company specializing in carbon dioxide removal (CDR) solutions, has secured $69 million in equity funding led by Decarbonization Partners, a collaboration between US-based BlackRock and Singapore’s Temasek focused on climate tech investments.
💡Founded in 2019, Neustark's technology utilizes recycled materials like concrete to permanently store CO₂ removed from the atmosphere through a mineralization process. The funding will support Neustark's expansion plans, including team growth, enhancing offerings, and geographic expansion to meet increasing global demand for CDR technologies.
Fintech
Asia
According to Singapore-based UnaFinancial, fintech venture investments in Asia are projected to reach $548 billion by 2028, based on data from Tracxn. In 2023, Asia secured $369 billion in fintech investments, ranking second globally behind North America, which received $453 billion. North America is expected to lead with $834 billion in fintech investments by 2028. The news was reported by Asian Banking & Finance.
Southeast Asia's fintech sector gathered $851 million in funding during the first half of 2024 alone, as reported by Tracxn. E-commerce dominated the fintech sector in 2023, capturing 59% of total investments, followed by digital payments and transfers at 17%, and digital lending at 11%.
💡 Globally, fintech venture investment volumes reached $1.06 trillion in 2023 and are anticipated to increase by 77% to $1.88 trillion by 2028, according to UnaFinancial's estimates.
Asia
Asia-based fintech and salary lending services provider Paywatch has raised $30 million (PHP1.76 billion) in funding as of June 24, 2024. The company specializes in earned-wage access (EWA) services, allowing employees to access a portion of their earned salary in real-time before the end of the payroll cycle. The service, known as "on-demand pay," features transparent pricing and no interest charges under certain conditions, aiming to reduce employee reliance on traditional loans.
The funding round includes $14 million (PHP821 million) from a series A equity investment led by Third Prime and a consortium of US investors, including Vanderbilt University and the University of Illinois Foundation, with an additional $16 million (PHP939 million) in lending from global banks, including Citi. Paywatch plans to use these funds to expand its product offerings.
💡Partnering with a wide range of companies including Park Hyatt, DFI Retail Group (Guardian), KFC, Pizza Hut (QSR Brands), and others, Paywatch has processed over $58 million (PHP3.4 billion) in salaries as of 2024, disbursing approximately $8 million monthly. The company expects to disburse over $120 million (PHP7.04 billion) in salaries by the end of 2024, solidifying its position as the largest EWA service provider in Asia by transaction volume.
India
The Reserve Bank of India (RBI) finalized the "Framework for Recognizing Self-Regulatory Organization(s) for FinTech Sector" last month after releasing a draft for public feedback on January 15. The framework aims to promote self-regulation among fintech companies by encouraging them to establish Self-Regulatory Organizations (SROs).
To qualify as an SRO, entities must operate as not-for-profit organizations, meet specific financial and infrastructure criteria, and maintain fair membership fee structures. SROs will play a crucial role in monitoring and ensuring compliance among their members, setting industry standards, and implementing grievance redressal mechanisms.
💡Additionally, SROs will serve as intermediaries between the fintech industry and the RBI, offering insights, updating the central bank on sector developments, and contributing to a regulatory environment that supports innovation while safeguarding consumer interests. Interested entities can apply for SRO recognition through the RBI's official website.
Environmental Sustainability
Singapore
Enterprise Singapore, the government agency supporting Singaporean business development, is leveraging venture builder expertise to advance the commercialization of deep tech R&D and intellectual property in sustainability and healthcare sectors, reports GovInsider. The strategic focus aims to accelerate the creation of impactful spinoffs from intellectual property, aligning with Singapore's national strategy under the Research, Innovation and Enterprise (RIE) plan.
Recently, Enterprise Singapore partnered with Breakthrough Energy and Temasek to jointly fund early-stage green tech solutions in Southeast Asia.
In April, MPA launched its first pilot trial for an e-HC charging point at Marina South Pier (MSP). The contract was awarded to Pyxis Energy, Pyxis Maritime, and SP Mobility to develop and operate the charging infrastructure, featuring a 150kW DC fast charger capable of charging e-HCs with a 500kWh battery in about three hours, providing a range of 50 nautical miles. The pilot aims to gather data for a national e-HC charging infrastructure masterplan, implementation plan, and national standards. Users will access the charger via the SP app using a QR code for payments, similar to electric vehicle users.
💡The RIE plan's budget has seen significant increases, with an additional S$3 billion allocated for 2020–2025 to further bolster Singapore's research and innovation capabilities.
Southeast Asia
Samsara Eco, an environmental technology innovator, has secured USD $65 million in Series A+ funding to expand its global recycling capabilities and combat plastic waste. Led by Temasek and Main Sequence, along with support from investors like Wollemi Capital, lululemon, Hitachi Ventures, Titanium Ventures, and DCVC, the funding will enhance Samsara Eco's enzymatic recycling technology.
💡The technology uses plastic-eating enzymes to break down waste into reusable monomers, facilitating a circular economy for plastics. The company plans to build commercial recycling facilities in Southeast Asia and expand its team to advance its capabilities in tackling diverse plastic materials.
New Zealand
On June 26, Wellington Airport received its first shipment of Sustainable Aviation Fuel (SAF) for Air New Zealand,marking its first use in the capital.
Exxon Mobil supplied the carrier with 500,000 liters of SAF, manufactured by EcoCeres in China using 100% used cooking oil. The SAF delivery to Wellington is equivalent to 165 flights on an A320 aircraft between Auckland and Wellington. It offers life-cycle carbon emissions savings of at least 80% compared to fossil jet fuel.
Separately, Air New Zealand has selected Wellington and Marlborough Airports to host its upcoming all-electric commercial service, starting in 2026. The service will transport cargo across Cook Strait using electric aircraft, aiming to lower emissions.
💡Earlier this year, Air New Zealand and Wellington Airport collaborated on a hydrogen trial for charging ground service equipment, supported by Hiringa Energy and Toyota New Zealand. These initiatives show Wellington Airport's commitment to sustainable aviation practices and reducing its environmental impact.
Japan-USA
MUFG Bank has invested in LanzaJet, a US company specializing in alcohol-to-jet (ATJ) technology for SAF. The investment supports the expansion of SAF production plants using LanzaJet's technology, including upcoming facilities in Japan. MUFG Bank's involvement aligns with Japan's objectives to enhance SAF usage in aviation.
💡MUFG has joined LanzaJet's ongoing $100 million funding round, alongside partners like Southwest Airlines, Microsoft, and Groupe ADP. The move underscores MUFG Bank's ongoing commitment to sustainable investments, building on its previous contributions in the SAF sector, such as facilitating green loans and contributing raw materials for SAF production.
Global
The International Organization for Standardization (ISO) has initiated the development of a new international standard focused on achieving net zero emissions. The standard aims to provide clear and credible guidelines for organizations to establish robust net zero targets and strategies, thereby preventing the practice of greenwashing.
The effort follows the introduction of ISO Net Zero Guidelines at the COP27 climate conference in 2022. The guidelines serve as a best-practices tool for organizations to develop comprehensive net zero strategies. Building upon these guidelines, the new standard will be independently verifiable on an international scale.
💡ISO plans to finalize and officially launch this standard at the COP30 conference scheduled for November 2025. The initiative is expected to play a pivotal role in promoting transparency and accountability in global efforts to combat climate change by setting a universally recognized framework for achieving net zero emissions.
Global
The IFRS Foundation and the International Finance Corporation (IFC), part of the World Bank Group, have announced a partnership aimed at enhancing sustainability reporting in emerging markets and developing economies (EMDEs).
As developing economies face the need to significantly increase climate investments, estimated at nearly $3 trillion annually by 2030 according to the IFC, the partnership aims to support these efforts primarily through the adoption and implementation of the IFRS Sustainability Disclosure Standards.
Launched at COP26 in November 2021, the standards, including the general sustainability (IFRS S1) and climate (IFRS S2) reporting standards released in June 2023, provide investors with crucial information on companies' sustainability risks and opportunities. Since their release, over 20 jurisdictions representing nearly 55% of global GDP have committed to adopting or integrating these standards into their regulatory frameworks.
💡The partnership between the IFRS Foundation and IFC will focus on promoting and building capacity for consistent application of these standards across EMDEs. Activities will include developing toolkits, publishing research, conducting training programs, and offering technical assistance to support jurisdictions in effectively implementing the standards.
Thailand
According to Thai media, the Department of Alternative Energy Development and Efficiency (DEDE) is updating its energy plans to accelerate the adoption of renewable energy and align with global climate goals. The plans include the Alternative Energy Development Plan (AEDP) and Energy Efficiency Plan (EEP), which aim to increase renewable energy production to over 50% of electricity generation by leveraging solar, wind, and biomass sources.
💡The initiative is driven by the need to comply with international regulations like the Carbon Border Adjustment Mechanism (CBAM) and reduce reliance on fossil fuels. Additionally, Thailand is exploring nuclear energy and digital innovations to enhance energy safety and efficiency.
China
Chevron Lummus Global LLC (CLG) has been selected to provide its ISOTERRA technology for a pioneering SAF project in China. The initiative aims to support China's sustainability goals by processing various lipid feedstocks such as plant-derived oils, animal fats, and used cooking oils.
The facility, with a planned capacity of 400 KTA, will also produce renewable diesel, showcasing operational versatility. CLG will supply technology licenses, engineering services, proprietary equipment, and catalysts, including EnRich® hydrotreating and EnHance™ isomerisation technologies, to optimize SAF production.
💡The project aligns with China's targets to reduce carbon emissions by 2030 and achieve carbon neutrality by 2060.
Cybersecurity
Singapore
A recent study by Jumio, a provider of AI-driven identity verification and compliance solutions, reveals that 78% of consumers in Singapore are willing to switch banks due to inadequate fraud protection. Globally, 75% of consumers across the UK, US, Singapore, and Mexico share this sentiment, highlighting growing concerns about banks' ability to safeguard against cybercrime and fraud.
The study, surveying over 8,000 adults, underscores a strong belief (75%) that banks bear the primary responsibility for protecting customers from fraud. Concerns are heightened by the increasing use of sophisticated fraud tactics like deepfakes and voice cloning.
💡In Singapore, 78% of respondents are specifically worried about their bank's capability to combat deepfake-powered fraud, surpassing the global average of 67%. Moreover, 74% of Singaporeans are calling for stronger cybersecurity measures, exceeding the global average of 69%.
South and Southeast Asia
Lexasure Financial Group Limited and OneDegree Global have partnered to launch a new cyber insurance platform aimed at small-to-medium enterprises (SMEs) across South and Southeast Asia.
The platform, known as Reinsurance-as-a-Service (RAAS), integrates advanced cyber risk assessment technologies to provide insurers with a seamless digital experience. It enables swift onboarding, risk profiling, straight-through underwriting, and policy issuance. The RAAS platform includes a real-time cyber risk exposure scanning solution, delivering instant security posture scores to enhance technology risk assessment.
💡Currently, cyber insurance penetration in Asia-Pacific remains low, despite a high incidence of cyber incidents among small and mid-sized businesses.
Aviation
Hong Kong
Airport Authority Hong Kong (AAHK) announced on June 27 that it has awarded the tender for developing the first autonomous mass transportation system in Hong Kong. The system will connect the Hong Kong Port of the Hong Kong-Zhuhai-Macao Bridge (HZMB) to SKYCITY at Hong Kong International Airport (HKIA).
The tender was granted to KCM - PML Joint Venture, which comprises KC Smart Mobility Company Limited (a subsidiary of Kwoon Chung Bus Holdings Limited), Prime Motors Limited, and technology provider Baidu, a leader in autonomous driving. Xiamen King Long will supply the vehicles.
The autonomous transportation system will operate on the Airportcity Link, a dedicated bridge with a pedestrian walkway, built by AAHK. This link will connect the HZMB Hong Kong Port to SKYCITY, offering dining, shopping, and entertainment options on Airport Island.
💡Passengers will travel between the Hong Kong Port and SKYCITY in three minutes aboard autonomous vehicles, each accommodating up to 16 passengers. Initially, the system will handle 500 passengers per hour in each direction, with plans to increase capacity to 2,000 passengers per hour per direction.
Hong Kong
AAHK will soon introduce a new smart security screening system at Hong Kong International Airport (HKIA). This system, set to begin operations in early July, will cover the entire airport, a global first.
Passengers using the new smart channels can keep electronics and liquids in their carry-ons, avoiding the need to remove them for screening. The system uses advanced 3D and 360° CT-based x-ray scanners from Nuctech. It also includes features like automatic tray recirculation, tray sterilization, and alerts for forgotten items.
💡Initially, the system will launch in Terminal 1's South and North Departures Immigration Halls, featuring 50 smart screening channels and 32 full-body scanners. AAHK anticipates a 20% increase in screening efficiency with the new setup.
Marine
South Korea
VINSSEN Co., Ltd, a company specializing in maritime decarbonization technology focusing on hydrogen fuel cells, has passed Bureau Veritas (BV)’s performance tests for its 60kW PEM Fuel Cell System onboard the vessel "Tenacity." The move marks a crucial step towards proving the feasibility of hydrogen fuel cell systems in commercial maritime use.
VINSSEN's system includes key components like a Fuel Cell Module, integrated converter module, battery system, transformer, and user interface designed for easy operation by vessel operators.
VINSSEN previously received Approval in Principle (AIP) Certification from Korean Register (KR) for its 250kW/100kW Maritime Fuel Cell Power Packs. They also obtained Type Approval for a 92kWh Lithium-Ion Battery System and delivered Korea’s first fully battery electric passenger ferry, "Garden Dream," in May 2023 for the Suncheonman International Expo.
Recently, VINSSEN concluded a successful Series C investment round amounting to 15 billion KRW, intended for product development, market expansion, and key personnel hiring. To support its global growth strategy, VINSSEN established a US branch office in Seattle in early 2024, following its presence at the K-Startup Center in Singapore since April 2022.
💡The ongoing trial project in Singapore, conducted in collaboration with Shell Singapore Pte. Ltd., Seatrium Limited, Penguin International Limited, and Air Liquide Singapore Pte. Ltd., aims to advance hydrogen fuel cell technology in the maritime sector.
Singapore
Eastern Pacific Shipping (EPS) and Yinson GreenTech (YGT) has completed the first cargo and crew deliveries using a fully electric vessel. The vessel, named Hydromover and launched in November 2023, is 18.5 meters long and equipped with swappable batteries, enabling it to transport up to 25 tonnes of cargo. The electric vessel, which produces zero emissions, marks a step towards achieving up to 50% operational cost savings through improved energy efficiency and reduced maintenance costs.
💡EPS and YGT's partnership aim to expand the use of electric vessels in Singapore, focusing on last-mile delivery operations to reduce Scope 3 emissions and promote sustainability in the shipping industry.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**