How Can Philanthropy Address Complex Climate Crises? | Asia Summit 2025

Current Climate Context and Urgency

• Assessments indicate a critical window of only one to two decades before climate risks become irreversible; delay increases costs and implementation failure risks.
• Global climate philanthropy represents only 2% of the $885 billion in total annual global giving.
• Geographic disparities exist, with funding heavily concentrated in the U.S., Europe, and Canada, while low- and middle-income countries (most impacted) receive significantly less.
• A small fraction of climate philanthropy is allocated to adaptation and resilience rather than mitigation.

Philanthropy Definitions and Strategic Roles

• Fred Tsao (TPC) defines philanthropy not as an institutional function but as a personal journey to awaken "love" and collaborate for a holistic "well-being" of the life system.
• Philanthropic capital should primarily de-risk prototypes; once a prototype is viable, institutional capital can take over the scaling.
• Boon Hong Eng (Temasek Foundation) distinguishes "charity" (immediate aid) from "philanthropy" (leverage and multiplication of impact per dollar).
• Philanthropic capital acts as "catalytic" or risk capital to crowd in significantly larger government and private sector funding.
• Jamie Choi (Tara Climate Foundation) advocates for a "threaded" approach to philanthropy rooted in Asian values of relationships, community, harmony, and prosperity.

Regional Specifics: Indonesia and Asia

• Indonesia is the world's largest archipelago (17,500 islands) and is ranked #1 globally for generosity over the last seven years (Charitable Aid Foundation).
• Indonesia aims to reach Net Zero by 2060 but seeks acceleration via private sector collaboration and has committed to 103 gigawatts of new electricity capacity, 75% from renewables.
• Indonesia possesses critical minerals (nickel, copper) for decarbonization and significant renewable energy potential above ground.
• Indonesian businesses operate under Kadin (Chambers of Commerce), which mandates collaboration and has established a Net Zero Hub and Carbon Center of Excellence.
• Boon Hong Eng highlights that 80% of the Asian population are smallholders or SMEs; climate solutions must align with their economic prosperity to ensure adoption.

Key Initiatives and Case Studies

• Temasek Foundation Rice Project:
  • Launched in 2004 following the Aceh tsunami to develop climate-resilient rice strains for drought and flooding.
  • Scaled to contract manufacturing in West Java; now sold as "Temasek Rice" (premium grade) in Japanese supermarkets.
  • Current focus (2020–present) on "low-carbon rice" using drip irrigation and alternate wetting and drying methods to reduce methane emissions by half.
  • Secured a $400 million World Bank facility for Vietnam, including $300 million for 1 million hectares and $100 million for carbon credits.
  • Aiming to deploy low-cost MRV (Measurement, Reporting, and Verification) to unlock carbon credit potential for smallholders.
• Temasek "Livability Challenge":
  • A multi-country innovation challenge (Singapore, Indonesia, Vietnam, China) partnering with local governments to co-own initiatives.
  • Over 8 years, Temasek invested in 11 companies that collectively raised $600 million in follow-on funding.
• Indonesian Social Initiatives:
  • Partnership with Kadin and Stanford to address the "80 million free nutritious meals" program (requiring 80 million eggs/drumsticks daily).
  • Collaboration on a target of 3 million affordable houses over five years to address a 20 million backlog, utilizing 3D printing and sustainable materials.
• TPC Impact Week:
  • A 2.5-year program training 1,000+ individuals to shift consciousness from "I" to "We," aiming to reach a "tipping point" of leadership and co-creation.
  • Planned development of an "impact merchant bank" to facilitate capital exchange for serious partners.

Barriers to Scaling and Solutions

• Alignment Deficit: Jamie Choi identifies "lack of alignment" among governments, businesses, and communities as the primary barrier, likening it to uncoordinated rowers creating friction.
• Funding Gaps: Nature-based solutions struggle to attract investment compared to tech-based solutions, which often secure full private funding.
• Trust Deficit: Anindya Bakri notes that high trust levels are required for international capital to flow into Indonesian opportunities, necessitating collaboration with global knowledge partners.
• Short-Term Cycles: Climate adaptation challenges clash with private sector quarterly goals and government election cycles, requiring philanthropy to fill the long-term gap.

Forward-Looking Strategies and Bold Bets

• China as a Model: Fred Tsao points to China as a leader driving the sustainability agenda with centralized government support, land consolidation for machine-farming, and rural-urban integration.
• Narrative Shift: Panelists urge moving away from the "trillion-dollar gap" fatalism to a narrative emphasizing that "wealth creates capital" and that small, united efforts can unlock massive funds.
• Asian Leadership: Jamie Choi declares this "Asia's decade for climate action," calling for more Asian philanthropists to enter the space to legitimize and scale Asian solutions.
• Carbon Markets: There is a consensus on the need to develop robust carbon and nature credit exchanges and markets in Asia to incentivize nature-based solutions.
• Policy Alignment: Governments are urged to sit with businesses and communities to co-design policies and financing mechanisms that lower barriers to the energy transition.
• Indonesia's Infrastructure: Indonesia is proceeding with 800km of dikes and giant sea walls on Java's north coast to combat flooding, modeling large-scale climate adaptation.

Core Principles for Future Action

• Triple Bottom Line: Boon Hong Eng advocates for foundations to adopt business-minded returns alongside impact, and businesses to adopt impact alongside returns, creating a "double bottom line" with governance as the third pillar.
• Convening Power: Philanthropy must act as a neutral convener to co-design adaptation strategies and bridge gaps between short-term political cycles and long-term climate needs.
• Local Context: Solutions must be localized and rooted in community voices rather than imposed external models.
• Collective Consciousness: Fred Tsao emphasizes that a mere 1-2% of "mutating" leaders can shift the trajectory of the whole system if they act in unison.