Asean gears up for increase in green financing

Green financing in ASEAN is expected to grow along with the projected increase in global green fund issuances to $1 trillion by 2020, according to a recent study by the World Bank and the ASEAN Capital Markets Forum (ACMF).

As such, ASEAN countries have developed the ASEAN Green Bond Standards, which were launched in the recent ASEAN Capital Markets Forum in Kuala Lumpur, Malaysia.

The so-called ASEAN Green Bond Standards were developed based on International Capital Market Association (ICMA) Green Bond Principles (GBP), which meet the needs and commitment of ASEAN.

These standards are for issuers and projects in the region and specifically excludes fossil fuel-related projects.

Ranjit Ajit Singh, chair of ACMF, said ASEAN must grow in a responsible and sustainable manner. “Growth cannot come at the expense of our future generations. We need to support efforts to protect the environment and the ASEAN Green Bond Standards will help in the allocation of resources towards climate friendly investment,” Singh said.

SEC chairperson Teresita Herbosa, for her part, said the corporate regulator, has committed to sign the ASEAN memorandum of understanding on Collective Investment Scheme (CIS), joining Singapore, Malaysia and Thailand.

SEC commissioner Ephyro Luis Amatong cited that a Philippine company has already issued certified green debt, noting that Aboitiz Power’s geothermal assets – TiwiMakban – were financed with close to P12 billion in debt last year.

The ACMF also agreed to facilitate greater mobility of capital market professionals.

The SEC said this would culminate in a pathway that allows professionals licensed by an ACMF member to provide designated services in another member ’s jurisdiction without having to meet additional requirements.

The ACMF remains committed to increasing ASEAN connectivity and facilitating the development of market solutions by engaging and collaborating with industry and stakeholders through dialogue.