The region talks far and wide about transitioning to net zero even though it is now by far the world’s largest consumer and producer of coal. 

There is not a month that goes by without some institution or government in Asia talking up the need for sustainable finance to help with the regional transition to net zero.

A case in point was a press release issued by the Hong Kong Monetary Authority on Monday after a joint conference with the Dubai Financial Services Authority (DFSA).

Current Gaps

The right sounds were made about building a supposed environmental corridor between Asia and the Middle East and the current gaps in transition finance.

But it does not appear to go much beyond that, given the signing of a memorandum of understanding between both parties seems like it will only result in «enhanced cross-border dialogue», exchanges of information, and joint research.

Bleak Picture

By the looks of it, quite a bit more urgency is needed in changing mindsets regionally, at least when looking at a graphic released by Visual Capitalist, also on Monday.

There, the picture is both stark and bleak – for the world and the region. Asia accounted for 82 percent of the world’s coal consumption in 2023, with China alone making up more than half, or 56 percent.

Nefarious Polluters

Moreover, the rest of the world, including erstwhile nefarious coal and fossil fuel devotees - North America and Europe - has been on a very perceptible and clear downtrend since the mid-1980s or early 1990s.

Many, looking at the graphic, might point to the incongruity of the industrialized world doing a big about-face on pollution when the rest of the world kicks into high gear, but that wouldn’t be doing anyone much of a service at this juncture.

Mining No Better

India, for example, is now the second largest user of coal after China and in 2023 the subcontinent surpassed the combined consumption of Europe and North America for the first time.

When it comes to mining, the region is no better. It accounted for 80 percent of the global output with mines in Australia, China, India, and Indonesia. According to Visual Capitalist, China alone was responsible for just over half of global coal production.

Nowhere Soon

Whatever is maintained at conferences, NGOs, and by corporations, coal is going nowhere anytime soon as it still meets more than a quarter of the world’s total energy needs.

Although it is welcome that the HKMA and the DFSA are working closely to promote sustainable finance, the event might have been an opportunity to look at the current situation in the region in detail as a matter of some urgency and not a nice to have for some distant future.

More Capital

Right now, as it stands, «exploring opportunities to mobilize capital» will probably not be much of a drop in anyone’s bucket.