Annual clean energy investment needs in ASEAN under the IEA’s net zero scenario are estimated at USD 180 billion by 2030, rising to USD 240 billion by 2035. This represents a six and eight fold increase from 2022 levels of USD 30 billion. This represents both a significant opportunity to develop the region’s green economy and a financing challenge to attract adequate and affordable capital from domestic and international investors.
In 2022, issuances of green, social, sustainable and sustainability-linked bonds (GSSB) reached nearly USD 860 billion. China accounted for the largest volume of green bond issuances at USD 85 billion, with total GSSB and debt reaching nearly USD 100 billion. GSSB and debt continue to grow in ASEAN, reaching USD 36 billion. GSSB and debt markets provide an important opportunity to address ASEAN’s financing challenge, and growing domestic bond and debt markets can help to improve the affordability of finance.
This virtual workshop will convene energy and sustainable finance policy makers from ASEAN with international experts from financial institutions and utilities to learn and share experiences in the development and use of sustainable debt instruments to fund clean energy projects. The event will highlight different policies and measures implemented in China and other Asian economies to develop GSSBs and other sustainable and transition debt instruments needed to transition and achieve net zero emissions in the power sector.
While interest and experience in financing clean energy projects are growing in ASEAN, many financial institutions still lack adequate capacity. This event aims to provide a platform for countries to share experiences and lessons learnt in developing the GSSB and debt markets and, in particular, raise awareness among potential issuers. This webinar also supports the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025 Phase II: 2021-2025, especially the Regional Energy Policy and Planning programme area, to enhance capabilities in enabling regulatory environments to attract investment in energy infrastructure and technologies.