The Asia-Pacific region has seen a rapid increase in the number of innovative initiatives to leverage private sector capital behind climate change action and the 2030 Agenda for Sustainable Development including through Public-Private Partnerships for renewable energy, impact investment and innovative fiscal instrument such as green bonds.
However, the proportion of private investment aligned to SDGs is still relatively small comparing to big picture. For example, out of 5.4 trillion USD invested in corporate bonds (in the ASEAN +2 countries), only 338 billion USD are investments in green bonds; total energy investment in the region is 701 billion USD while only 49 billion USD is private investment in energy mobilized by PPPs.
Government action will be key to scaling up these initiatives as well as other private sector endeavors to invest in sustainable development. However, whilst there is significant government interest in taking this forward further access to knowledge and capacity development around these initiatives will need to be provided. There is huge potential to this endeavor with the World Business Council for Sustainable Development estimating that the achievement of the SDGs in Asia could unlock 5 trillion USD a year in business value across four economic systems alone by 2030 (energy, food and agriculture, cities and urban mobility and health and well-being).
Green Bonds play a growing role in mobilizing capital at scale for low carbon, climate-resilient infrastructure and programs around the world. Both Governments and private corporations are using green bonds as a key part of their financing strategies. The Green Bond market in Asia is growing rapidly and the region is poised to become a global leader in the sector.
Corporations are increasingly using bonds as a means of financing supply chain and operational efficiency improvements such as clean energy, energy storage and energy efficiency measures. Similarly, sovereign and subnational governments around the world are using green bonds to finance long-term infrastructure such as railways, green buildings, and wastewater treatment systems, as well as clean energy, climate adaptation, and climate resilience projects.
UNDP has been instrumental in Indonesia’s issuance of green bonds. UNDP has supported the Government of Indonesia, through its Ministry of Finance, to issue its very first sovereign entitled “Green Sukuk” in March 2018, which raised USD 1.25 billion from investors from a wide background including conventional, Islamic, and green investors. Building on this success, the Government of Indonesia issued the second and third global green sukuk in 2018 and 2019, as well the world first retail green sukuk in 2019. Lessons learned from Indonesia experience will be shared at the webinar.
In addition, the experience of the Government of Thailand, through the Public Debt Management Office in issuing the ASEAN’s first sovereign sustainability bond, with technical support from ADB will also be discussed at the workshop.
The workshop will also explore the issuance of municipal bonds in India.
The Green Bonds webinar will bring together government representatives from the region along with private sector leaders interested in learning more about and/or identifying a path forward for the issuance of a green bond. This workshop will: 1) enhance the knowledge of governments and corporations interested in issuing green bonds and 2) highlight key lessons learned from the successful issuance of green bonds from the region.
This webinar will: 1) increase awareness of the role that green bonds can play in accelerating progress towards meeting Nationally Determined Contributions (NDCs), 2) facilitate knowledge exchange by showcasing relevant use cases and case studies, 3) educate participants about the various resources and programs available to support scaled issuance of green finance. 4) support not only government and local banks but also green businesses who wish to access green bonds in the long term to increase their understanding of green bond instruments. It is a part of climate finance training of the Climate Business Index initiative jointly conducted by UNDP and MPI. Anticipated outcomes from this webinar include increased knowledge and understanding of green bond issuances and new examples of public and private sector actors using green bonds to increase capital flows into low carbon infrastructure development.
The webinar will be organized by the Climate Bonds Initiative (CBI), Asia Development Bank (ADB) and the United Nations Development Program (UNDP) through its Climate Finance Network (CFN).. It is expected that governments and relevant stakeholders from Vietnam, Indonesia, Thailand, Bangladesh, Cambodia and India to participate.
The agenda of this webinar is as below:
Should you have any queries, please contact Sojin Jung (firstname.lastname@example.org) and Kosintr Puongsophol (email@example.com).