Kyoto, Japan -- In April 2021 the United States hosted the Leaders Summit on Climate, where many of the world's most powerful countries -- and largest carbon emitters -- committed to net-zero emissions targets. Many also made pledges to divest from fossil fuels and invest in green finance. Since then, the capacity for renewable energy and sales of electric vehicles have increased. Yet progress toward system-level transformations is still moving at a snail's pace.

Meeting these targets will depend on commitments from more than just the wealthiest nations. Given the size of their populations, economies, and greenhouse gas emissions, developing economies in Southeast Asia will also play essential roles in the transition to net-zero.

In a new book, a collaborative team of researchers including Akihisa Mori from Kyoto University, focuses on the net-zero transition in Southeast Asia, applying the lessons from the Leaders Summit on Climate to these countries. The researchers wanted to understand whether financial pledges, such as fossil fuel divestment and green finance, can help financial systems overcome the tradeoff between net-zero transitions and sustainable development in emerging markets and developing economies.