Non-populist policies pose risks for politicians. Prabowo Subianto, who has claimed victory in the Indonesian presidential elections, is looking at creating five million green jobs, but stops short of pledging to phase out fossil fuels subsidies.
Investors now need to be fully aware of the environmental and social implications of geopolitics – or else remain oblivious to the risks and opportunities. ESG must become ESGG.
The first auction on Malaysia’s new voluntary carbon market, the Bursa Carbon Exchange (BCX), took place on 16 March, with around RM7.7 million in carbon credits sold.
The market must work in sync with a range of policy instruments. Stable institutional and regulatory structures must balance competing interests and trade-offs to ensure optimum coverage, caps, pricing and reporting.