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The nation’s GSS debt was the fifth highest in ASEAN, however the second largest supply of inexperienced debt within the area at $1 billion, most of it from the transport and power sectors.
The report additionally highlighted the speedy development of the GSS debt market in ASEAN, whose worth surged to $24 billion from $13.6 billion in 2020.
In the meantime, sustainability-linked debt rose by over thrice, from $8.6 billion in 2020 to $27.5 billion.
Annual inexperienced, social, and sustainability (GSS) debt issuances from ASEAN-6 international locations. Photograph courtesy of Local weather Bonds Initiative & HSBC |
Singapore remained the area’s chief with GSS debt issuance of $13.6 billion, up from 2020’s $4.9 billion.
Development was primarily pushed by the inexperienced theme and mirrored sturdy assist for inexperienced finance from the Singaporean authorities. It was the biggest supply of inexperienced debt at $12 billion.
The report stated the expansion mirrored the area’s enthusiasm to allocate capital for the response to the Covid-19 pandemic together with facilitating long-term, low carbon, and climate-resilient financial development.
Vietnam, Thailand and Malaysia all purpose to attain carbon neutrality by 2050, whereas Indonesia has fast-tracked its emission purpose by 10 years to 2060 or earlier.
Kevin Tan, head of HSBC’s Sustainable Finance and Funding in ASEAN, stated extra corporations are aligning local weather danger with their enterprise methods, however “considerably extra financing must be deployed, to mitigate and adapt to local weather change.”
Sean Kidney, CEO of Local weather Bonds Initiative, praised regional insurance policies’ contribution to the speedy development of GSS debt market, however warned of “an enormous hole that must be addressed – and shortly.
“Excessive-emission and hard-to-abate sectors should transition from brown-to-green quickly. That features actions, property and initiatives linked to power, heavy manufacturing industries and agriculture,” he stated.
Local weather Bonds Initiative is a global group working to mobilize international capital for local weather motion. It promotes funding in initiatives and property wanted for a speedy transition to a low-carbon, local weather resilient, and honest financial system.
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